QQQ vs VAW
Invesco QQQ Trust, Series 1 vs Vanguard Materials ETF
Which is better, QQQ or VAW?
Large Cap Growth against Mid Cap Blend.
VAW has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 56.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | VAW |
|---|---|---|
| Expense Ratio | 0.18% | 0.09%Best |
| AUM | $483.5B | $2.9B |
| Dividend Yield | 0.44% | 1.39% |
| Holdings | 107 | 111 |
| YTD Return | +16.87%Best | +9.09% |
| 1Y Return | +22.98%Best | +10.34% |
| 3Y Return (annualized) | +24.98%Best | +10.26% |
| 5Y Return (annualized) | +14.39%Best | +6.35% |
| Volatility (annualized) | 18.3%Best | 20.4% |
| Max Drawdown | -53.5%Best | -63.5% |
| $10,000 over 5 years | $19,586Best | $13,605 |
| Top 10 Weight | 46.5%Best | 56.2% |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Blend |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 11, 2026 (22.6 years).
QQQ vs VAW growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 22.6 years both funds cover.
QQQ vs VAW Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard Materials ETF (VAW) is an ETF from Vanguard (US). Over the past year QQQ returned +22.98% while VAW returned +10.34%. Year to date, QQQ is up 16.87% versus a gain of 9.09% for VAW.
Over three years, QQQ compounded at +24.98% per year against +10.26% for VAW; over five years the annualized figures are +14.39% and +6.35% respectively. Across the full 23-year window we track, QQQ has the edge at +14.14% annualized vs +7.47%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VAW has been the more volatile fund, with annualized monthly volatility of 20.4% compared with 18.3% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -53.5% for QQQ and -63.5% for VAW. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VAW charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.39% for VAW.
Holdings Overlap
1.0% of QQQ's money is in holdings VAW also owns. 15.7% of VAW's money is in holdings QQQ also owns.
VAW and QQQ share little of their money.
1 positions in common, counted across the 102 positions we hold weights for in QQQ and 111 in VAW, against full books of 107 and 111.
What only one of them owns
Our book lists 101 positions for VAW that do not appear in our book for QQQ (75.3% of the fund), and 94 for QQQ that do not appear in VAW (96.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VAW | Difference |
|---|---|---|---|
| LINLinde Plc Ordinary Shares | 1.00% | 15.72% | 14.72% |
You are not choosing between two funds in isolation.
Whichever of QQQ and VAW you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or VAW?
QQQ has an expense ratio of 0.18% while VAW charges 0.09%. VAW is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, QQQ or VAW?
Over the past year QQQ returned +22.98% vs +10.34% for VAW, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +14.14% vs +7.47% for VAW. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VAW?
VAW has been the more volatile fund at 20.4% annualized versus 18.3% for QQQ. Worst drawdown: QQQ -53.5% vs VAW -63.5%.
Should I hold both QQQ and VAW?
QQQ and VAW have a monthly-return correlation of 0.73, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and VAW?
15.7% of VAW's money is in holdings QQQ also owns. 15.7% of VAW's is in holdings QQQ also owns. They hold 1 positions in common, counted across the 102 positions we hold weights for in QQQ and 111 in VAW.
Which pays a higher dividend, QQQ or VAW?
QQQ yields 0.44% while VAW yields 1.39%, so VAW currently pays the higher dividend yield.
Is VAW better than QQQ?
VAW has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 56.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.