QQQ vs VGM
Invesco QQQ Trust, Series 1 vs Invesco Trust for Investment Grade Municipals
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VGM offers more diversification with 534 holdings.
Side-by-Side Comparison
| Metric | QQQ | VGM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 3.13% | |
| AUM | $496.3B | $3,008.32 | |
| Dividend Yield | 0.44% | 7.65% | |
| Holdings | 108 | 534 | |
| YTD Return | +16.64% | +3.24% | |
| 1Y Return | +27.27% | +15.55% | |
| 3Y Return (annualized) | +25.96% | +10.72% | |
| 5Y Return (annualized) | +14.54% | -0.32% | |
| Volatility (annualized) | 30.6% | 12.3% | |
| Max Drawdown | -83.0% | -58.5% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Jan 24, 1992 |
QQQ vs VGM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco Trust for Investment Grade Municipals (VGM) is a ETF from Invesco (US). Over the past year QQQ returned +27.27% while VGM returned +15.55%. Year to date, QQQ is up 16.64% versus a gain of 3.24% for VGM.
Over three years, QQQ compounded at +25.96% per year against +10.72% for VGM; over five years the annualized figures are +14.54% and -0.32% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs -0.32%. 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 12.3% for VGM. 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 -58.5% for VGM. 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 0.15. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VGM charges 3.13%. On a $10,000 position that is $18 vs $313 annually, a gap of $295 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 7.65% for VGM.
Holdings Overlap
QQQ and VGM share 0 holdings out of 372 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VGM?
QQQ has an expense ratio of 0.18% while VGM charges 3.13%. QQQ is the cheaper option. On a $10,000 investment, that is $295 per year of difference.
Which performed better, QQQ or VGM?
Over the past year QQQ returned +27.27% vs +15.55% for VGM, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), QQQ annualized +13.03% vs -0.32% for VGM. Past performance does not guarantee future results.
Which is riskier, QQQ or VGM?
QQQ has been the more volatile fund at 30.6% annualized versus 12.3% for VGM. Worst drawdown: QQQ -83.0% vs VGM -58.5%.
Should I hold both QQQ and VGM?
QQQ and VGM have a monthly-return correlation of 0.15, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VGM?
QQQ and VGM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 372 unique securities.
Which pays a higher dividend, QQQ or VGM?
QQQ yields 0.44% while VGM yields 7.65%, so VGM currently pays the higher dividend yield.
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