QQQ vs VFMV
Invesco QQQ Trust, Series 1 vs Vanguard US Minimum Volatility ETF
Quick Verdict
VFMV has a lower expense ratio. QQQ delivered stronger 1-year returns. VFMV offers more diversification with 182 holdings.
Side-by-Side Comparison
| Metric | QQQ | VFMV | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.13% | |
| AUM | $496.3B | $447M | |
| Dividend Yield | 0.44% | 1.75% | |
| Holdings | 108 | 182 | |
| YTD Return | +16.23% | +11.72% | |
| 1Y Return | +26.23% | +11.99% | |
| 3Y Return (annualized) | +25.75% | +15.33% | |
| 5Y Return (annualized) | +14.78% | +9.05% | |
| Volatility (annualized) | 30.6% | 13.2% | |
| Max Drawdown | -83.0% | -33.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Feb 13, 2018 |
QQQ vs VFMV Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard US Minimum Volatility ETF (VFMV) is a ETF from Vanguard (US). Over the past year QQQ returned +26.23% while VFMV returned +11.99%. Year to date, QQQ is up 16.23% versus a gain of 11.72% for VFMV.
Over three years, QQQ compounded at +25.75% per year against +15.33% for VFMV; over five years the annualized figures are +14.78% and +9.05% respectively. Across the full 9-year window we track, QQQ has the edge at +13.02% annualized vs +9.87%. 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 13.2% for VFMV. 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 -33.6% for VFMV. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VFMV 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 0.44% against 1.75% for VFMV.
Holdings Overlap
QQQ and VFMV share 29 holdings out of 274 unique holdings combined, representing a 18.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VFMV?
QQQ has an expense ratio of 0.18% while VFMV charges 0.13%. VFMV is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, QQQ or VFMV?
Over the past year QQQ returned +26.23% vs +11.99% for VFMV, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +13.02% vs +9.87% for VFMV. Past performance does not guarantee future results.
Which is riskier, QQQ or VFMV?
QQQ has been the more volatile fund at 30.6% annualized versus 13.2% for VFMV. Worst drawdown: QQQ -83.0% vs VFMV -33.6%.
Should I hold both QQQ and VFMV?
QQQ and VFMV have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VFMV?
QQQ and VFMV share 29 common holdings with a 18.2% weight overlap. Combined, they hold 274 unique securities.
Which pays a higher dividend, QQQ or VFMV?
QQQ yields 0.44% while VFMV yields 1.75%, so VFMV currently pays the higher dividend yield.
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