QQQ vs VDE
Invesco QQQ Trust, Series 1 vs Vanguard Energy ETF
Which is better, QQQ or VDE?
Large Cap Growth against Large Cap Value.
VDE has a lower expense ratio. QQQ led over 3Y and the full window, VDE over 1Y and 5Y. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 65.1%.
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 | VDE |
|---|---|---|
| Expense Ratio | 0.18% | 0.09%Best |
| AUM | $483.5B | $12.4B |
| Dividend Yield | 0.44% | 2.24% |
| Holdings | 107 | 114 |
| YTD Return | +15.21% | +41.78%Best |
| 1Y Return | +19.78% | +46.58%Best |
| 3Y Return (annualized) | +24.58%Best | +15.06% |
| 5Y Return (annualized) | +13.93% | +25.02%Best |
| Volatility (annualized) | 18.4%Best | 26.6% |
| Max Drawdown | -53.5%Best | -78.5% |
| $10,000 over 5 years | $19,195 | $30,542Best |
| Top 10 Weight | 46.5%Best | 65.1% |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Mar 10, 1999 | Sep 23, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2004 to Sep 16, 2026 (22 years).
QQQ vs VDE 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 years both funds cover.
QQQ vs VDE Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard Energy ETF (VDE) is an ETF from Vanguard (US). Over the past year QQQ returned +19.78% while VDE returned +46.58%. Year to date, QQQ is up 15.21% versus a gain of 41.78% for VDE.
Over three years, QQQ compounded at +24.58% per year against +15.06% for VDE; over five years the annualized figures are +13.93% and +25.02% respectively. Across the full 22-year window we track, QQQ has the edge at +14.81% annualized vs +6.95%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDE has been the more volatile fund, with annualized monthly volatility of 26.6% compared with 18.4% 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 -78.5% for VDE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.42. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while VDE 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 2.24% for VDE.
Holdings Overlap
0.5% of QQQ's money is in holdings VDE also owns. 3.9% of VDE's money is in holdings QQQ also owns.
VDE and QQQ share little of their money.
2 positions in common, counted across the 102 positions we hold weights for in QQQ and 112 in VDE, against full books of 107 and 114.
What only one of them owns
Our book lists 99 positions for VDE that do not appear in our book for QQQ (94.1% of the fund), and 94 for QQQ that do not appear in VDE (97.0%).
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 VDE 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 VDE?
QQQ has an expense ratio of 0.18% while VDE charges 0.09%. VDE is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, QQQ or VDE?
Over the past year QQQ returned +19.78% vs +46.58% for VDE, so VDE leads on 1-year performance. Over the longest common window we track (22 years), QQQ annualized +14.81% vs +6.95% for VDE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VDE?
VDE has been the more volatile fund at 26.6% annualized versus 18.4% for QQQ. Worst drawdown: QQQ -53.5% vs VDE -78.5%.
Should I hold both QQQ and VDE?
QQQ and VDE have a monthly-return correlation of 0.42, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and VDE?
3.9% of VDE's money is in holdings QQQ also owns. 3.9% of VDE's is in holdings QQQ also owns. They hold 2 positions in common, counted across the 102 positions we hold weights for in QQQ and 112 in VDE.
Which pays a higher dividend, QQQ or VDE?
QQQ yields 0.44% while VDE yields 2.24%, so VDE currently pays the higher dividend yield.
Is VDE better than QQQ?
VDE has a lower expense ratio. QQQ led over 3Y and the full window, VDE over 1Y and 5Y. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 65.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.