QQQ vs VGHAX
Invesco QQQ Trust, Series 1 vs Vanguard Health Care Fund Admiral Shares
Which is better, QQQ or VGHAX?
Each has led over a different period.
QQQ has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, VGHAX over 1Y. VGHAX is less concentrated, with 40.6% 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 | VGHAX |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.27% |
| AUM | $437.3B | $33.0B |
| Dividend Yield | 0.43% | 2.50% |
| Holdings | 208 | 97 |
| YTD Price Return | +12.60%Best | +10.86% |
| 1Y Price Return | +11.07% | +15.37%Best |
| 3Y Price Return (annualized) | +22.36%Best | +4.59% |
| 5Y Price Return (annualized) | +12.07%Best | -0.99% |
| Volatility (annualized) | 21.1% | 15.6%Best |
| Max Drawdown | -35.6% | -32.7%Best |
| $10,000 over 5 years | $17,679Best | $9,515 |
| Top 10 Weight | 46.9% | 40.6%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Mar 10, 1999 | Nov 12, 2001 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VGHAX. Both funds are measured the same way, so the comparison holds. QQQ yields 0.43% and VGHAX 2.50% on top.
Volatility and max drawdown are measured over the window both funds cover: Nov 12, 2021 to Nov 10, 2026 (5 years).
QQQ vs VGHAX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
QQQ vs VGHAX Performance
Invesco QQQ Trust, Series 1 (QQQ) is an 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 +11.07% while VGHAX returned +15.37%. Year to date, QQQ is up 12.60% versus a gain of 10.86% for VGHAX.
Over three years, QQQ compounded at +22.36% per year against +4.59% for VGHAX; over five years the annualized figures are +12.07% and -0.99% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 21.1% 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 -35.6% for QQQ and -32.7% for VGHAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.36. They move together some of the time, and apart the rest.
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 0.43% against 2.50% for VGHAX.
Structure and taxes
VGHAX is a mutual fund and QQQ is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
3.2% of QQQ's money is in holdings VGHAX also owns. 10.7% of VGHAX's money is in holdings QQQ also owns.
VGHAX and QQQ share little of their money.
The two holdings books were reported 76 days apart, QQQ as of Oct 15, 2026 and VGHAX as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
7 positions in common, counted across the 101 positions we hold weights for in QQQ and 83 in VGHAX, against full books of 208 and 97.
What only one of them owns
Our book lists 51 positions for VGHAX that do not appear in our book for QQQ (62.4% of the fund), and 87 for QQQ that do not appear in VGHAX (94.0%).
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 VGHAX | Difference |
|---|---|---|---|
| ISRGIntuitive Surgical Inc | 0.64% | 2.52% | 1.88% |
| VRTXVertex Pharmaceuticals Inc | 0.55% | 2.36% | 1.81% |
| REGNRegeneron Pharmaceuticals, Inc. | 0.34% | 2.14% | 1.80% |
| AMGNAmgen Inc. | 1.00% | 0.99% | 0.01% |
| DXCMDexcom Inc. | 0.14% | 1.18% | 1.04% |
| ALNYAlnylam Pharmaceuticals Inc. | 0.13% | 1.15% | 1.02% |
| MRNAModerna Inc | 0.40% | 0.34% | 0.06% |
You are not choosing between two funds in isolation.
Whichever of QQQ and VGHAX 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 VGHAX?
QQQ has an expense ratio of 0.18% while VGHAX charges 0.27%. QQQ is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, QQQ or VGHAX?
Over the past year QQQ returned +11.07% vs +15.37% for VGHAX, so VGHAX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VGHAX?
QQQ has been the more volatile fund at 21.1% annualized versus 15.6% for VGHAX. Worst drawdown: QQQ -35.6% vs VGHAX -32.7%.
Should I hold both QQQ and VGHAX?
QQQ and VGHAX have a monthly-return correlation of 0.36, 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 VGHAX?
10.7% of VGHAX's money is in holdings QQQ also owns. 10.7% of VGHAX's is in holdings QQQ also owns. They hold 7 positions in common, counted across the 101 positions we hold weights for in QQQ and 83 in VGHAX.
Which pays a higher dividend, QQQ or VGHAX?
QQQ yields 0.43% while VGHAX yields 2.50%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or QQQ in a taxable account?
QQQ is an ETF and VGHAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VGHAX better than QQQ?
QQQ has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, VGHAX over 1Y. VGHAX is less concentrated, with 40.6% 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.