QQQ vs VBR
Invesco QQQ Trust, Series 1 vs Vanguard Morningstar Small-Cap Value ETF
Which is better, QQQ or VBR?
Large Cap Growth against Small Cap Value.
VBR has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. VBR is less concentrated, with 5.6% of the fund in its ten largest positions against 47.2%.
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 | VBR |
|---|---|---|
| Expense Ratio | 0.18% | 0.05%Best |
| AUM | $498.6B | $37.3B |
| Dividend Yield | 0.42% | 1.76% |
| Holdings | 321 | 839 |
| YTD Return | +21.44%Best | +10.02% |
| 1Y Return | +23.58%Best | +13.17% |
| 3Y Return (annualized) | +27.86%Best | +16.39% |
| 5Y Return (annualized) | +16.25%Best | +8.43% |
| Volatility (annualized) | 18.2%Best | 19.0% |
| Max Drawdown | -53.5%Best | -64.0% |
| $10,000 over 5 years | $21,231Best | $14,988 |
| Top 10 Weight | 47.2% | 5.6%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Small Cap Value |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Oct 1, 2026 (22.7 years).
QQQ vs VBR 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 22.7 years both funds cover.
QQQ vs VBR Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard Morningstar Small-Cap Value ETF (VBR) is an ETF from Vanguard (US). Over the past year QQQ returned +23.58% while VBR returned +13.17%. Year to date, QQQ is up 21.44% versus a gain of 10.02% for VBR.
Over three years, QQQ compounded at +27.86% per year against +16.39% for VBR; over five years the annualized figures are +16.25% and +8.43% respectively. Across the full 23-year window we track, QQQ has the edge at +14.30% annualized vs +7.65%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.0% compared with 18.2% 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 -64.0% for VBR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 0.42% against 1.76% for VBR.
Holdings Overlap
We hold position weights for 102 holdings in QQQ and 810 in VBR, totalling 99.9% and 99.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 46 days apart, QQQ as of Sep 15, 2026 and VBR as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 102 positions we hold weights for in QQQ and 810 in VBR, against full books of 321 and 839.
What only one of them owns
Our book lists 780 positions for VBR that do not appear in our book for QQQ (96.8% of the fund), and 96 for QQQ that do not appear in VBR (97.8%).
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.
You are not choosing between two funds in isolation.
Whichever of QQQ and VBR 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 VBR?
QQQ has an expense ratio of 0.18% while VBR charges 0.05%. VBR is the cheaper option, by $13 a year on a $10,000 investment.
Which performed better, QQQ or VBR?
Over the past year QQQ returned +23.58% vs +13.17% for VBR, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +14.30% vs +7.65% for VBR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VBR?
VBR has been the more volatile fund at 19.0% annualized versus 18.2% for QQQ. Worst drawdown: QQQ -53.5% vs VBR -64.0%.
Should I hold both QQQ and VBR?
QQQ and VBR have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or VBR?
QQQ yields 0.42% while VBR yields 1.76%, so VBR currently pays the higher dividend yield.
Is VBR better than QQQ?
VBR has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. VBR is less concentrated, with 5.6% of the fund in its ten largest positions against 47.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.