QQQ vs VBF
Invesco QQQ Trust, Series 1 vs Invesco Bond Fund
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VBF offers more diversification with 1017 holdings.
Side-by-Side Comparison
| Metric | QQQ | VBF | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.54% | |
| AUM | $455.8B | $4,400.74 | |
| Dividend Yield | 0.41% | 5.07% | |
| Holdings | 108 | 1,492 | |
| YTD Return | +17.46% | -1.40% | |
| 1Y Return | +26.02% | +0.20% | |
| 3Y Return (annualized) | +25.51% | +5.04% | |
| 5Y Return (annualized) | +15.12% | -2.25% | |
| Volatility (annualized) | 30.6% | 10.5% | |
| Max Drawdown | -83.0% | -41.6% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Oct 28, 1970 |
QQQ vs VBF Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco Bond Fund (VBF) is a ETF from Invesco (US). Over the past year QQQ returned +26.02% while VBF returned +0.20%. Year to date, QQQ is up 17.46% versus a loss of 1.40% for VBF.
Over three years, QQQ compounded at +25.51% per year against +5.04% for VBF; over five years the annualized figures are +15.12% and -2.25% respectively. Across the full 27-year window we track, QQQ has the edge at +13.08% annualized vs -0.06%. 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 10.5% for VBF. 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 -41.6% for VBF. 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 0.14. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VBF charges 0.54%. On a $10,000 position that is $18 vs $54 annually, a gap of $36 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 5.07% for VBF.
Holdings Overlap
QQQ and VBF share 0 holdings out of 1120 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VBF?
QQQ has an expense ratio of 0.18% while VBF charges 0.54%. QQQ is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, QQQ or VBF?
Over the past year QQQ returned +26.02% vs +0.20% for VBF, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), QQQ annualized +13.08% vs -0.06% for VBF. Past performance does not guarantee future results.
Which is riskier, QQQ or VBF?
QQQ has been the more volatile fund at 30.6% annualized versus 10.5% for VBF. Worst drawdown: QQQ -83.0% vs VBF -41.6%.
Should I hold both QQQ and VBF?
QQQ and VBF have a monthly-return correlation of 0.14, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VBF?
QQQ and VBF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1120 unique securities.
Which pays a higher dividend, QQQ or VBF?
QQQ yields 0.41% while VBF yields 5.07%, so VBF currently pays the higher dividend yield.
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