QQQ vs VCRM
Invesco QQQ Trust, Series 1 vs Vanguard Core Tax-Exempt Bond ETF
Quick Verdict
VCRM has a lower expense ratio. QQQ delivered stronger 1-year returns. VCRM offers more diversification with 3,675 holdings.
Side-by-Side Comparison
| Metric | QQQ | VCRM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.12% | |
| AUM | $496.3B | $1.7B | |
| Dividend Yield | 0.44% | 3.69% | |
| Holdings | 108 | 3,675 | |
| YTD Return | +16.64% | -0.98% | |
| 1Y Return | +27.27% | +3.87% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 4.1% | |
| Max Drawdown | -83.0% | -3.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | Nov 19, 2024 |
QQQ vs VCRM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Core Tax-Exempt Bond ETF (VCRM) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VCRM returned +3.87%. Year to date, QQQ is up 16.64% versus a loss of 0.98% for VCRM.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.1% for VCRM. 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 -3.8% for VCRM. 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VCRM charges 0.12%. On a $10,000 position that is $18 vs $12 annually, a gap of $6 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.69% for VCRM.
Holdings Overlap
QQQ and VCRM share 0 holdings out of 292 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 VCRM?
QQQ has an expense ratio of 0.18% while VCRM charges 0.12%. VCRM is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, QQQ or VCRM?
Over the past year QQQ returned +27.27% vs +3.87% for VCRM, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.03% vs +2.56% for VCRM. Past performance does not guarantee future results.
Which is riskier, QQQ or VCRM?
QQQ has been the more volatile fund at 30.6% annualized versus 4.1% for VCRM. Worst drawdown: QQQ -83.0% vs VCRM -3.8%.
Should I hold both QQQ and VCRM?
QQQ and VCRM have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VCRM?
QQQ and VCRM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 292 unique securities.
Which pays a higher dividend, QQQ or VCRM?
QQQ yields 0.44% while VCRM yields 3.69%, so VCRM currently pays the higher dividend yield.
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