QQQ vs VFMO
Invesco QQQ Trust, Series 1 vs Vanguard US Momentum Factor ETF
Which is better, QQQ or VFMO?
Large Cap Growth against Mid Cap Growth.
VFMO has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. VFMO is less concentrated, with 8.8% 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 | VFMO |
|---|---|---|
| Expense Ratio | 0.18% | 0.13%Best |
| AUM | $498.6B | $1.9B |
| Dividend Yield | 0.42% | 0.62% |
| Holdings | 321 | 673 |
| YTD Return | +22.95%Best | +18.21% |
| 1Y Return | +23.60%Best | +17.89% |
| 3Y Return (annualized) | +27.53%Best | +26.91% |
| 5Y Return (annualized) | +16.67%Best | +13.12% |
| Volatility (annualized) | 20.1%Tie | 20.1%Tie |
| Max Drawdown | -35.1%Best | -36.8% |
| $10,000 over 5 years | $21,617Best | $18,522 |
| Top 10 Weight | 47.2% | 8.8%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Growth |
| Inception | Mar 10, 1999 | Feb 13, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Feb 15, 2018 to Oct 9, 2026 (8.6 years).
QQQ vs VFMO 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 8.6 years both funds cover.
QQQ vs VFMO Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard US Momentum Factor ETF (VFMO) is an ETF from Vanguard (US). Over the past year QQQ returned +23.60% while VFMO returned +17.89%. Year to date, QQQ is up 22.95% versus a gain of 18.21% for VFMO.
Over three years, QQQ compounded at +27.53% per year against +26.91% for VFMO; over five years the annualized figures are +16.67% and +13.12% respectively. Across the full 9-year window we track, QQQ has the edge at +19.57% annualized vs +14.42%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ and VFMO have been equally volatile, both at 20.1% annualized.
The deepest peak-to-trough decline in our data was -35.1% for QQQ and -36.8% for VFMO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VFMO charges 0.13%. On a $10,000 position that is $18 vs $13 annually, a gap of $5 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 0.62% for VFMO.
Holdings Overlap
39.3% of QQQ's money is in holdings VFMO also owns. 14.8% of VFMO's money is in holdings QQQ also owns.
The two portfolios partly overlap.
30 positions in common, counted across the 102 positions we hold weights for in QQQ and 694 in VFMO, against full books of 321 and 673.
What only one of them owns
Our book lists 607 positions for VFMO that do not appear in our book for QQQ (79.6% of the fund), and 66 for QQQ that do not appear in VFMO (58.4%).
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 VFMO | Difference |
|---|---|---|---|
| AAPLApple, Inc | 7.80% | 0.44% | 7.36% |
| MUMicron Technology, Inc. | 4.85% | 0.89% | 3.96% |
| AMDAdvanced Micro Devices Inc | 3.71% | 0.81% | 2.90% |
| GOOGAlphabet Inc. C | 2.93% | 0.20% | 2.73% |
| INTCIntel Corporation | 2.28% | 0.72% | 1.56% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.95% | 0.50% | 1.45% |
| AMATApplied Materials, Inc. | 1.60% | 0.77% | 0.83% |
| LRCXLam Research Corp | 1.64% | 0.71% | 0.93% |
| SNDKSandisk Corp/De | 1.07% | 1.03% | 0.04% |
| PANWPalo Alto Networks, Inc | 1.19% | 0.65% | 0.54% |
39.3% of QQQ is already inside VFMO.
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 VFMO?
QQQ has an expense ratio of 0.18% while VFMO charges 0.13%. VFMO is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, QQQ or VFMO?
Over the past year QQQ returned +23.60% vs +17.89% for VFMO, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +19.57% vs +14.42% for VFMO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VFMO?
QQQ and VFMO have been equally volatile, both at 20.1% annualized. Worst drawdown: QQQ -35.1% vs VFMO -36.8%.
Should I hold both QQQ and VFMO?
QQQ and VFMO have a monthly-return correlation of 0.81, 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 VFMO?
39.3% of QQQ's money is in holdings VFMO also owns. 14.8% of VFMO's is in holdings QQQ also owns. They hold 30 positions in common, counted across the 102 positions we hold weights for in QQQ and 694 in VFMO.
Which pays a higher dividend, QQQ or VFMO?
QQQ yields 0.42% while VFMO yields 0.62%, so VFMO currently pays the higher dividend yield.
Is VFMO better than QQQ?
VFMO has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. VFMO is less concentrated, with 8.8% 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.