QQQ vs VFH
Invesco QQQ Trust, Series 1 vs Vanguard Financials ETF
Which is better, QQQ or VFH?
Large Cap Growth against Large Cap Value.
VFH has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 46.6%.
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 | VFH |
|---|---|---|
| Expense Ratio | 0.18% | 0.09%Best |
| AUM | $483.5B | $14.9B |
| Dividend Yield | 0.44% | 1.67% |
| Holdings | 107 | 429 |
| YTD Return | +15.18%Best | +4.51% |
| 1Y Return | +19.65%Best | +7.44% |
| 3Y Return (annualized) | +24.60%Best | +20.28% |
| 5Y Return (annualized) | +13.94%Best | +10.48% |
| Volatility (annualized) | 18.3%Best | 20.3% |
| Max Drawdown | -53.5%Best | -79.9% |
| $10,000 over 5 years | $19,204Best | $16,460 |
| Top 10 Weight | 46.5%Best | 46.6% |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 15, 2026 (22.6 years).
QQQ vs VFH 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 22.6 years both funds cover.
QQQ vs VFH Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard Financials ETF (VFH) is an ETF from Vanguard (US). Over the past year QQQ returned +19.65% while VFH returned +7.44%. Year to date, QQQ is up 15.18% versus a gain of 4.51% for VFH.
Over three years, QQQ compounded at +24.60% per year against +20.28% for VFH; over five years the annualized figures are +13.94% and +10.48% respectively. Across the full 23-year window we track, QQQ has the edge at +14.06% annualized vs +5.14%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFH has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 18.3% 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 -79.9% for VFH. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.66. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while VFH 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 1.67% for VFH.
Holdings Overlap
0.2% of QQQ's money is in holdings VFH also owns. 0.3% of VFH's money is in holdings QQQ also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 102 positions we hold weights for in QQQ and 418 in VFH, against full books of 107 and 429.
What only one of them owns
Our book lists 372 positions for VFH that do not appear in our book for QQQ (98.2% of the fund), and 95 for QQQ that do not appear in VFH (97.3%).
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 VFH | Difference |
|---|---|---|---|
| PYPLPaypay Holdings, Inc. | 0.22% | 0.33% | 0.11% |
You are not choosing between two funds in isolation.
Whichever of QQQ and VFH 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 VFH?
QQQ has an expense ratio of 0.18% while VFH charges 0.09%. VFH is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, QQQ or VFH?
Over the past year QQQ returned +19.65% vs +7.44% for VFH, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +14.06% vs +5.14% for VFH. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VFH?
VFH has been the more volatile fund at 20.3% annualized versus 18.3% for QQQ. Worst drawdown: QQQ -53.5% vs VFH -79.9%.
Should I hold both QQQ and VFH?
QQQ and VFH have a monthly-return correlation of 0.66, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or VFH?
QQQ yields 0.44% while VFH yields 1.67%, so VFH currently pays the higher dividend yield.
Is VFH better than QQQ?
VFH has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 46.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.