QQQ vs VFQY
Invesco QQQ Trust, Series 1 vs Vanguard US Quality Factor ETF
Which is better, QQQ or VFQY?
Large Cap Growth against Mid Cap Blend.
VFQY has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, VFQY over 1Y. VFQY is less concentrated, with 12.9% of the fund in its ten largest positions against 46.9%.
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 | VFQY |
|---|---|---|
| Expense Ratio | 0.18% | 0.13%Best |
| AUM | $437.3B | $511M |
| Dividend Yield | 0.43% | 0.99% |
| Holdings | 208 | 1,422 |
| YTD Return | +12.98% | +16.05%Best |
| 1Y Return | +11.59% | +18.36%Best |
| 3Y Return (annualized) | +23.05%Best | +17.69% |
| 5Y Return (annualized) | +12.74%Best | +8.04% |
| Volatility (annualized) | 20.2% | 18.0%Best |
| Max Drawdown | -35.1%Best | -37.4% |
| $10,000 over 5 years | $18,213Best | $14,721 |
| Top 10 Weight | 46.9% | 12.9%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Blend |
| Inception | Mar 10, 1999 | Feb 13, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Feb 15, 2018 to Nov 11, 2026 (8.7 years).
QQQ vs VFQY 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 8.7 years both funds cover.
QQQ vs VFQY Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard US Quality Factor ETF (VFQY) is an ETF from Vanguard (US). Over the past year QQQ returned +11.59% while VFQY returned +18.36%. Year to date, QQQ is up 12.98% versus a gain of 16.05% for VFQY.
Over three years, QQQ compounded at +23.05% per year against +17.69% for VFQY; over five years the annualized figures are +12.74% and +8.04% respectively. Across the full 9-year window we track, QQQ has the edge at +18.20% annualized vs +11.50%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.2% compared with 18.0% for VFQY. 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 -35.1% for QQQ and -37.4% for VFQY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VFQY 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 0.43% against 0.99% for VFQY.
Holdings Overlap
35.7% of QQQ's money is in holdings VFQY also owns. 20.8% of VFQY's money is in holdings QQQ also owns.
The two portfolios partly overlap.
29 positions in common, counted across the 101 positions we hold weights for in QQQ and 473 in VFQY, against full books of 208 and 1,422.
What only one of them owns
Our book lists 434 positions for VFQY that do not appear in our book for QQQ (77.5% of the fund), and 65 for QQQ that do not appear in VFQY (61.5%).
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 VFQY | Difference |
|---|---|---|---|
| AAPLApple Inc | 7.68% | 1.28% | 6.40% |
| NVDANvidia Corp | 8.05% | 0.09% | 7.96% |
| METAMeta Platforms Inc | 3.37% | 0.61% | 2.76% |
| WMTWalmart Inc | 2.43% | 0.95% | 1.48% |
| COSTCostco Wholesale Corp. | 1.84% | 1.30% | 0.54% |
| LRCXLam Research Corp | 1.47% | 0.96% | 0.51% |
| GILDGilead Sciences Inc | 0.83% | 1.47% | 0.64% |
| TXNTexas Instrument Inc | 1.08% | 1.14% | 0.06% |
| FTNTFortinet Inc | 0.57% | 1.38% | 0.81% |
| KLACKla Corp. | 0.97% | 0.94% | 0.03% |
35.7% of QQQ is already inside VFQY.
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 VFQY?
QQQ has an expense ratio of 0.18% while VFQY charges 0.13%. VFQY is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, QQQ or VFQY?
Over the past year QQQ returned +11.59% vs +18.36% for VFQY, so VFQY leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +18.20% vs +11.50% for VFQY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VFQY?
QQQ has been the more volatile fund at 20.2% annualized versus 18.0% for VFQY. Worst drawdown: QQQ -35.1% vs VFQY -37.4%.
Should I hold both QQQ and VFQY?
QQQ and VFQY have a monthly-return correlation of 0.79, 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 VFQY?
35.7% of QQQ's money is in holdings VFQY also owns. 20.8% of VFQY's is in holdings QQQ also owns. They hold 29 positions in common, counted across the 101 positions we hold weights for in QQQ and 473 in VFQY.
Which pays a higher dividend, QQQ or VFQY?
QQQ yields 0.43% while VFQY yields 0.99%, so VFQY currently pays the higher dividend yield.
Is VFQY better than QQQ?
VFQY has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, VFQY over 1Y. VFQY is less concentrated, with 12.9% of the fund in its ten largest positions against 46.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.