QQQ vs VB
Invesco QQQ Trust, Series 1 vs Vanguard Morningstar Small-Cap ETF
Quick Verdict
VB has a lower expense ratio. QQQ delivered stronger 1-year returns. VB offers more diversification with 1,311 holdings.
Side-by-Side Comparison
| Metric | QQQ | VB | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $496.3B | $79.7B | |
| Dividend Yield | 0.44% | 1.22% | |
| Holdings | 108 | 1,311 | |
| YTD Return | +15.47% | +16.60% | |
| 1Y Return | +24.44% | +22.55% | |
| 3Y Return (annualized) | +25.47% | +17.42% | |
| 5Y Return (annualized) | +14.22% | +7.88% | |
| Volatility (annualized) | 30.6% | 18.9% | |
| Max Drawdown | -83.0% | -61.0% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
QQQ vs VB Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Morningstar Small-Cap ETF (VB) is a ETF from Vanguard (US). Over the past year QQQ returned +24.44% while VB returned +22.55%. Year to date, QQQ is up 15.47% versus a gain of 16.60% for VB.
Over three years, QQQ compounded at +25.47% per year against +17.42% for VB; over five years the annualized figures are +14.22% and +7.88% respectively. Across the full 23-year window we track, QQQ has the edge at +12.99% annualized vs +8.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 18.9% for VB. 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 -83.0% for QQQ and -61.0% for VB. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VB charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.22% for VB.
Holdings Overlap
QQQ and VB share 3 holdings out of 1400 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VB?
QQQ has an expense ratio of 0.18% while VB charges 0.03%. VB is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or VB?
Over the past year QQQ returned +24.44% vs +22.55% for VB, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +12.99% vs +8.79% for VB. Past performance does not guarantee future results.
Which is riskier, QQQ or VB?
QQQ has been the more volatile fund at 30.6% annualized versus 18.9% for VB. Worst drawdown: QQQ -83.0% vs VB -61.0%.
Should I hold both QQQ and VB?
QQQ and VB have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VB?
QQQ and VB share 3 common holdings with a 0.7% weight overlap. Combined, they hold 1400 unique securities.
Which pays a higher dividend, QQQ or VB?
QQQ yields 0.44% while VB yields 1.22%, so VB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.