QQQ vs VCLT
Invesco QQQ Trust, Series 1 vs Vanguard Long Term Corporate Bond ETF
Quick Verdict
VCLT has a lower expense ratio. QQQ delivered stronger 1-year returns. VCLT offers more diversification with 2,856 holdings.
Side-by-Side Comparison
| Metric | QQQ | VCLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $496.3B | $9.7B | |
| Dividend Yield | 0.44% | 5.76% | |
| Holdings | 108 | 2,856 | |
| YTD Return | +16.64% | -2.27% | |
| 1Y Return | +27.27% | +0.40% | |
| 3Y Return (annualized) | +25.96% | +5.51% | |
| 5Y Return (annualized) | +14.54% | -2.92% | |
| Volatility (annualized) | 30.6% | 10.7% | |
| Max Drawdown | -83.0% | -35.1% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Nov 19, 2009 |
QQQ vs VCLT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Long Term Corporate Bond ETF (VCLT) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VCLT returned +0.40%. Year to date, QQQ is up 16.64% versus a loss of 2.27% for VCLT.
Over three years, QQQ compounded at +25.96% per year against +5.51% for VCLT; over five years the annualized figures are +14.54% and -2.92% respectively. Across the full 17-year window we track, QQQ has the edge at +13.03% annualized vs +1.42%. 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 10.7% for VCLT. 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 -35.1% for VCLT. 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VCLT 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 5.76% for VCLT.
Holdings Overlap
QQQ and VCLT share 0 holdings out of 401 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 VCLT?
QQQ has an expense ratio of 0.18% while VCLT charges 0.03%. VCLT is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or VCLT?
Over the past year QQQ returned +27.27% vs +0.40% for VCLT, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.03% vs +1.42% for VCLT. Past performance does not guarantee future results.
Which is riskier, QQQ or VCLT?
QQQ has been the more volatile fund at 30.6% annualized versus 10.7% for VCLT. Worst drawdown: QQQ -83.0% vs VCLT -35.1%.
Should I hold both QQQ and VCLT?
QQQ and VCLT have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VCLT?
QQQ and VCLT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 401 unique securities.
Which pays a higher dividend, QQQ or VCLT?
QQQ yields 0.44% while VCLT yields 5.76%, so VCLT currently pays the higher dividend yield.
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