QQQ vs VCR
Invesco QQQ Trust, Series 1 vs Vanguard Consumer Discretionary ETF
Quick Verdict
VCR has a lower expense ratio. QQQ delivered stronger 1-year returns. VCR offers more diversification with 356 holdings.
Side-by-Side Comparison
| Metric | QQQ | VCR | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.09% | |
| AUM | $496.3B | $6.6B | |
| Dividend Yield | 0.44% | 0.75% | |
| Holdings | 108 | 356 | |
| YTD Return | +16.64% | +1.79% | |
| 1Y Return | +27.27% | +6.43% | |
| 3Y Return (annualized) | +25.96% | +13.68% | |
| 5Y Return (annualized) | +14.54% | +5.74% | |
| Volatility (annualized) | 30.6% | 19.6% | |
| Max Drawdown | -83.0% | -62.7% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
QQQ vs VCR Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Consumer Discretionary ETF (VCR) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VCR returned +6.43%. Year to date, QQQ is up 16.64% versus a gain of 1.79% for VCR.
Over three years, QQQ compounded at +25.96% per year against +13.68% for VCR; over five years the annualized figures are +14.54% and +5.74% respectively. Across the full 23-year window we track, QQQ has the edge at +13.03% annualized vs +9.99%. 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 19.6% for VCR. 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 -62.7% for VCR. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VCR charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.75% for VCR.
Holdings Overlap
QQQ and VCR share 10 holdings out of 370 unique holdings combined, representing a 10.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VCR?
QQQ has an expense ratio of 0.18% while VCR charges 0.09%. VCR is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, QQQ or VCR?
Over the past year QQQ returned +27.27% vs +6.43% for VCR, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.03% vs +9.99% for VCR. Past performance does not guarantee future results.
Which is riskier, QQQ or VCR?
QQQ has been the more volatile fund at 30.6% annualized versus 19.6% for VCR. Worst drawdown: QQQ -83.0% vs VCR -62.7%.
Should I hold both QQQ and VCR?
QQQ and VCR have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VCR?
QQQ and VCR share 10 common holdings with a 10.7% weight overlap. Combined, they hold 370 unique securities.
Which pays a higher dividend, QQQ or VCR?
QQQ yields 0.44% while VCR yields 0.75%, so VCR currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.