QQQ vs VBIL
Invesco QQQ Trust, Series 1 vs Vanguard 0-3 Month Treasury Bill ETF
Quick Verdict
VBIL has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | VBIL | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $455.8B | $9.4B | |
| Dividend Yield | 0.41% | 3.65% | |
| Holdings | 108 | 28 | |
| YTD Return | +19.68% | +1.90% | |
| 1Y Return | +26.75% | +3.53% | |
| 3Y Return (annualized) | +26.25% | - | |
| 5Y Return (annualized) | +15.39% | - | |
| Volatility (annualized) | 30.6% | 0.7% | |
| Max Drawdown | -83.0% | -0.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 7, 2025 |
QQQ vs VBIL Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard 0-3 Month Treasury Bill ETF (VBIL) is a ETF from Vanguard (US). Over the past year QQQ returned +26.75% while VBIL returned +3.53%. Year to date, QQQ is up 19.68% versus a gain of 1.90% for VBIL.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 0.7% for VBIL. 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 -0.3% for VBIL. 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 0.05. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VBIL charges 0.06%. On a $10,000 position that is $18 vs $6 annually, a gap of $12 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.65% for VBIL.
Holdings Overlap
QQQ and VBIL share 0 holdings out of 105 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 VBIL?
QQQ has an expense ratio of 0.18% while VBIL charges 0.06%. VBIL is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or VBIL?
Over the past year QQQ returned +26.75% vs +3.53% for VBIL, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.15% vs +4.60% for VBIL. Past performance does not guarantee future results.
Which is riskier, QQQ or VBIL?
QQQ has been the more volatile fund at 30.6% annualized versus 0.7% for VBIL. Worst drawdown: QQQ -83.0% vs VBIL -0.3%.
Should I hold both QQQ and VBIL?
QQQ and VBIL have a monthly-return correlation of 0.05, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VBIL?
QQQ and VBIL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, QQQ or VBIL?
QQQ yields 0.41% while VBIL yields 3.65%, so VBIL currently pays the higher dividend yield.
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