QQQ vs VGHAX
Invesco QQQ Trust, Series 1 vs Vanguard Health Care Fund Admiral Shares
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VGHAX offers more diversification with 109 holdings.
Side-by-Side Comparison
| Metric | QQQ | VGHAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.27% | |
| AUM | $496.3B | $32.8B | |
| Dividend Yield | 0.44% | 6.45% | |
| Holdings | 108 | 109 | |
| YTD Return | +16.64% | +6.28% | |
| 1Y Return | +27.27% | +23.01% | |
| 3Y Return (annualized) | +25.96% | +1.17% | |
| 5Y Return (annualized) | +14.54% | -2.22% | |
| Volatility (annualized) | 30.6% | 15.6% | |
| Max Drawdown | -83.0% | -33.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Nov 12, 2001 |
QQQ vs VGHAX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US). Over the past year QQQ returned +27.27% while VGHAX returned +23.01%. Year to date, QQQ is up 16.64% versus a gain of 6.28% for VGHAX.
Over three years, QQQ compounded at +25.96% per year against +1.17% for VGHAX; over five years the annualized figures are +14.54% and -2.22% respectively. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs -2.22%. 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 15.6% for VGHAX. 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 VGHAX. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VGHAX charges 0.27%. On a $10,000 position that is $18 vs $27 annually, a gap of $9 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 6.45% for VGHAX.
Holdings Overlap
QQQ and VGHAX share 5 holdings out of 183 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VGHAX?
QQQ has an expense ratio of 0.18% while VGHAX charges 0.27%. QQQ is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, QQQ or VGHAX?
Over the past year QQQ returned +27.27% vs +23.01% for VGHAX, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.03% vs -2.22% for VGHAX. Past performance does not guarantee future results.
Which is riskier, QQQ or VGHAX?
QQQ has been the more volatile fund at 30.6% annualized versus 15.6% for VGHAX. Worst drawdown: QQQ -83.0% vs VGHAX -33.6%.
Should I hold both QQQ and VGHAX?
QQQ and VGHAX have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VGHAX?
QQQ and VGHAX share 5 common holdings with a 1.7% weight overlap. Combined, they hold 183 unique securities.
Which pays a higher dividend, QQQ or VGHAX?
QQQ yields 0.44% while VGHAX yields 6.45%, so VGHAX currently pays the higher dividend yield.
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