QQQ vs VDIGX
Invesco QQQ Trust, Series 1 vs Vanguard Dividend Growth Fund Investor Class
Which is better, QQQ or VDIGX?
Large Cap Growth against Large Cap Blend.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. VDIGX is less concentrated, with 38.2% of the fund in its ten largest positions against 47.2%.
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 | VDIGX |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.20% |
| AUM | $498.6B | $35.5B |
| Dividend Yield | 0.42% | 23.10% |
| Holdings | 321 | 60 |
| YTD Price Return | +22.26%Best | -4.69% |
| 1Y Price Return | +23.75%Best | -15.33% |
| 3Y Price Return (annualized) | +28.32%Best | -2.79% |
| 5Y Price Return (annualized) | +16.30%Best | -3.23% |
| Volatility (annualized) | 20.7% | 15.7%Best |
| Max Drawdown | -35.6% | -32.6%Best |
| $10,000 over 5 years | $21,276Best | $8,486 |
| Top 10 Weight | 47.2% | 38.2%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | May 15, 1992 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VDIGX. Both funds are measured the same way, so the comparison holds. QQQ yields 0.42% and VDIGX 23.10% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 4, 2021 to Oct 1, 2026 (5 years).
QQQ vs VDIGX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
QQQ vs VDIGX Performance
Invesco QQQ Trust, Series 1 (QQQ) is an 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 +23.75% while VDIGX returned -15.33%. Year to date, QQQ is up 22.26% versus a loss of 4.69% for VDIGX.
Over three years, QQQ compounded at +28.32% per year against -2.79% for VDIGX; over five years the annualized figures are +16.30% and -3.23% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.7% compared with 15.7% 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 -35.6% for QQQ and -32.6% for VDIGX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
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 0.42% against 23.10% for VDIGX.
Structure and taxes
VDIGX is a mutual fund and QQQ is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
32.0% of QQQ's money is in holdings VDIGX also owns. 34.5% of VDIGX's money is in holdings QQQ also owns.
The two portfolios partly overlap.
The two holdings books were reported 77 days apart, QQQ as of Sep 15, 2026 and VDIGX as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
16 positions in common, counted across the 102 positions we hold weights for in QQQ and 51 in VDIGX, against full books of 321 and 60.
What only one of them owns
Our book lists 33 positions for VDIGX that do not appear in our book for QQQ (62.7% of the fund), and 80 for QQQ that do not appear in VDIGX (65.8%).
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.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VDIGX | Difference |
|---|---|---|---|
| AAPLApple, Inc | 7.80% | 3.43% | 4.37% |
| MSFTMicrosoft Corp | 5.88% | 4.62% | 1.26% |
| AVGOBroadcom Inc | 2.74% | 5.73% | 2.99% |
| KLACKla Corp | 1.04% | 3.71% | 2.67% |
| GOOGLAlphabet Inc,class A | 3.15% | 1.49% | 1.66% |
| TXNTexas Instrument Inc | 1.08% | 3.54% | 2.46% |
| METAMeta Platforms Inc | 3.07% | 0.67% | 2.40% |
| LINLinde Plc Ordinary Shares | 0.95% | 2.49% | 1.54% |
| WMTWalmart, Inc. | 2.31% | 0.51% | 1.80% |
| ADPAutomatic Data Processing, Inc. | 0.48% | 2.01% | 1.53% |
34.5% of VDIGX is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $2 a year on a $10,000 investment.
Which performed better, QQQ or VDIGX?
Over the past year QQQ returned +23.75% vs -15.33% for VDIGX, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VDIGX?
QQQ has been the more volatile fund at 20.7% annualized versus 15.7% for VDIGX. Worst drawdown: QQQ -35.6% vs VDIGX -32.6%.
Should I hold both QQQ and VDIGX?
QQQ and VDIGX have a monthly-return correlation of 0.59, 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 VDIGX?
34.5% of VDIGX's money is in holdings QQQ also owns. 34.5% of VDIGX's is in holdings QQQ also owns. They hold 16 positions in common, counted across the 102 positions we hold weights for in QQQ and 51 in VDIGX.
Which pays a higher dividend, QQQ or VDIGX?
QQQ yields 0.42% while VDIGX yields 23.10%, so VDIGX currently pays the higher dividend yield.
Is it better to hold VDIGX or QQQ in a taxable account?
QQQ is an ETF and VDIGX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VDIGX better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. VDIGX is less concentrated, with 38.2% of the fund in its ten largest positions against 47.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.