QQQ vs VBR
Invesco QQQ Trust, Series 1 vs Vanguard Small Cap Value ETF
Quick Verdict
VBR has a lower expense ratio. QQQ delivered stronger 1-year returns. VBR offers more diversification with 853 holdings.
Side-by-Side Comparison
| Metric | QQQ | VBR | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $455.8B | $36.9B | |
| Dividend Yield | 0.41% | 2.23% | |
| Holdings | 108 | 853 | |
| YTD Return | +19.68% | +18.27% | |
| 1Y Return | +26.75% | +23.85% | |
| 3Y Return (annualized) | +26.25% | +16.25% | |
| 5Y Return (annualized) | +15.39% | +9.89% | |
| Volatility (annualized) | 30.6% | 19.0% | |
| Max Drawdown | -83.0% | -64.0% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
QQQ vs VBR Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Small Cap Value ETF (VBR) is a ETF from Vanguard (US). Over the past year QQQ returned +26.75% while VBR returned +23.85%. Year to date, QQQ is up 19.68% versus a gain of 18.27% for VBR.
Over three years, QQQ compounded at +26.25% per year against +16.25% for VBR; over five years the annualized figures are +15.39% and +9.89% respectively. Across the full 23-year window we track, QQQ has the edge at +13.15% annualized vs +8.04%. 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 19.0% for VBR. 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 -64.0% for VBR. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VBR charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.23% for VBR.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, QQQ or VBR?
QQQ has an expense ratio of 0.18% while VBR charges 0.05%. VBR is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, QQQ or VBR?
Over the past year QQQ returned +26.75% vs +23.85% for VBR, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.15% vs +8.04% for VBR. Past performance does not guarantee future results.
Which is riskier, QQQ or VBR?
QQQ has been the more volatile fund at 30.6% annualized versus 19.0% for VBR. Worst drawdown: QQQ -83.0% vs VBR -64.0%.
Should I hold both QQQ and VBR?
QQQ and VBR have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VBR?
QQQ and VBR share 2 common holdings with a 1.3% weight overlap. Combined, they hold 910 unique securities.
Which pays a higher dividend, QQQ or VBR?
QQQ yields 0.41% while VBR yields 2.23%, so VBR currently pays the higher dividend yield.
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