QQQ vs VGK
Invesco QQQ Trust, Series 1 vs Vanguard FTSE Europe ETF
Quick Verdict
VGK has a lower expense ratio. QQQ delivered stronger 1-year returns. VGK offers more diversification with 1,251 holdings.
Side-by-Side Comparison
| Metric | QQQ | VGK | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $496.3B | $30.5B | |
| Dividend Yield | 0.44% | 2.82% | |
| Holdings | 108 | 1,251 | |
| YTD Return | +16.23% | +10.81% | |
| 1Y Return | +26.23% | +19.44% | |
| 3Y Return (annualized) | +25.75% | +18.94% | |
| 5Y Return (annualized) | +14.78% | +9.55% | |
| Volatility (annualized) | 30.6% | 18.5% | |
| Max Drawdown | -83.0% | -67.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Mar 4, 2005 |
QQQ vs VGK Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US). Over the past year QQQ returned +26.23% while VGK returned +19.44%. Year to date, QQQ is up 16.23% versus a gain of 10.81% for VGK.
Over three years, QQQ compounded at +25.75% per year against +18.94% for VGK; over five years the annualized figures are +14.78% and +9.55% respectively. Across the full 21-year window we track, QQQ has the edge at +13.02% annualized vs +3.67%. 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 18.5% for VGK. 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 -67.3% for VGK. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VGK charges 0.06%. On a $10,000 position that is $18 vs $6 annually, a gap of $12 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 2.82% for VGK.
Holdings Overlap
QQQ and VGK share 2 holdings out of 1277 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VGK?
QQQ has an expense ratio of 0.18% while VGK charges 0.06%. VGK is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or VGK?
Over the past year QQQ returned +26.23% vs +19.44% for VGK, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), QQQ annualized +13.02% vs +3.67% for VGK. Past performance does not guarantee future results.
Which is riskier, QQQ or VGK?
QQQ has been the more volatile fund at 30.6% annualized versus 18.5% for VGK. Worst drawdown: QQQ -83.0% vs VGK -67.3%.
Should I hold both QQQ and VGK?
QQQ and VGK have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VGK?
QQQ and VGK share 2 common holdings with a 0.3% weight overlap. Combined, they hold 1277 unique securities.
Which pays a higher dividend, QQQ or VGK?
QQQ yields 0.44% while VGK yields 2.82%, so VGK currently pays the higher dividend yield.
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