QQQ vs VDC
Invesco QQQ Trust, Series 1 vs Vanguard Consumer Staples ETF
Quick Verdict
VDC has a lower expense ratio. QQQ delivered stronger 1-year returns. VDC offers more diversification with 105 holdings.
Side-by-Side Comparison
| Metric | QQQ | VDC | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.09% | |
| AUM | $455.8B | $7.8B | |
| Dividend Yield | 0.41% | 2.33% | |
| Holdings | 108 | 107 | |
| YTD Return | +18.31% | +10.77% | |
| 1Y Return | +25.37% | +5.62% | |
| 3Y Return (annualized) | +25.79% | +8.19% | |
| 5Y Return (annualized) | +15.20% | +6.89% | |
| Volatility (annualized) | 30.6% | 11.8% | |
| Max Drawdown | -83.0% | -36.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
QQQ vs VDC Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Consumer Staples ETF (VDC) is a ETF from Vanguard (US). Over the past year QQQ returned +25.37% while VDC returned +5.62%. Year to date, QQQ is up 18.31% versus a gain of 10.77% for VDC.
Over three years, QQQ compounded at +25.79% per year against +8.19% for VDC; over five years the annualized figures are +15.20% and +6.89% respectively. Across the full 23-year window we track, QQQ has the edge at +13.10% annualized vs +7.59%. 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 11.8% for VDC. 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 -36.6% for VDC. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VDC 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 0.41% against 2.33% for VDC.
Holdings Overlap
QQQ and VDC share 7 holdings out of 201 unique holdings combined, representing a 6.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VDC?
QQQ has an expense ratio of 0.18% while VDC charges 0.09%. VDC is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, QQQ or VDC?
Over the past year QQQ returned +25.37% vs +5.62% for VDC, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.10% vs +7.59% for VDC. Past performance does not guarantee future results.
Which is riskier, QQQ or VDC?
QQQ has been the more volatile fund at 30.6% annualized versus 11.8% for VDC. Worst drawdown: QQQ -83.0% vs VDC -36.6%.
Should I hold both QQQ and VDC?
QQQ and VDC have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VDC?
QQQ and VDC share 7 common holdings with a 6.2% weight overlap. Combined, they hold 201 unique securities.
Which pays a higher dividend, QQQ or VDC?
QQQ yields 0.41% while VDC yields 2.33%, so VDC currently pays the higher dividend yield.
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