QQQ vs VDIGX
Invesco QQQ Trust, Series 1 vs Vanguard Dividend Growth Fund Investor Class
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 107 holdings.
Side-by-Side Comparison
| Metric | QQQ | VDIGX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.20% | |
| AUM | $486.1B | $35.5B | |
| Dividend Yield | 0.44% | 23.36% | |
| Holdings | 107 | 62 | |
| YTD Return | +17.33% | -2.04% | |
| 1Y Return | +26.50% | -12.55% | |
| 3Y Return (annualized) | +24.58% | -3.25% | |
| 5Y Return (annualized) | +14.15% | -3.42% | |
| Volatility (annualized) | 30.6% | 15.9% | |
| Max Drawdown | -83.0% | -32.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | May 15, 1992 |
QQQ vs VDIGX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US). Over the past year QQQ returned +26.50% while VDIGX returned -12.55%. Year to date, QQQ is up 17.33% versus a loss of 2.04% for VDIGX.
Over three years, QQQ compounded at +24.58% per year against -3.25% for VDIGX; over five years the annualized figures are +14.15% and -3.42% respectively. Across the full 5-year window we track, QQQ has the edge at +13.04% annualized vs -3.42%. 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 15.9% for VDIGX. 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 -32.6% for VDIGX. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VDIGX charges 0.20%. On a $10,000 position that is $18 vs $20 annually, a gap of $2 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 23.36% for VDIGX.
Holdings Overlap
QQQ and VDIGX share 16 holdings out of 137 unique holdings combined, representing a 20.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VDIGX?
QQQ has an expense ratio of 0.18% while VDIGX charges 0.20%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, QQQ or VDIGX?
Over the past year QQQ returned +26.50% vs -12.55% for VDIGX, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.04% vs -3.42% for VDIGX. Past performance does not guarantee future results.
Which is riskier, QQQ or VDIGX?
QQQ has been the more volatile fund at 30.6% annualized versus 15.9% for VDIGX. Worst drawdown: QQQ -83.0% vs VDIGX -32.6%.
Should I hold both QQQ and VDIGX?
QQQ and VDIGX have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VDIGX?
QQQ and VDIGX share 16 common holdings with a 20.9% weight overlap. Combined, they hold 137 unique securities.
Which pays a higher dividend, QQQ or VDIGX?
QQQ yields 0.44% while VDIGX yields 23.36%, so VDIGX currently pays the higher dividend yield.
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