QQQ vs VGUS
Invesco QQQ Trust, Series 1 vs Vanguard Ultra-Short Treasury ETF
Quick Verdict
VGUS has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | VGUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.07% | |
| AUM | $455.8B | $1.0B | |
| Dividend Yield | 0.41% | 3.60% | |
| Holdings | 108 | 91 | |
| YTD Return | +18.31% | +1.83% | |
| 1Y Return | +25.37% | +3.49% | |
| 3Y Return (annualized) | +25.79% | - | |
| 5Y Return (annualized) | +15.20% | - | |
| Volatility (annualized) | 30.6% | 0.7% | |
| Max Drawdown | -83.0% | -0.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 7, 2025 |
QQQ vs VGUS Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Ultra-Short Treasury ETF (VGUS) is a ETF from Vanguard (US). Over the past year QQQ returned +25.37% while VGUS returned +3.49%. Year to date, QQQ is up 18.31% versus a gain of 1.83% for VGUS.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 0.7% for VGUS. 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 -0.3% for VGUS. 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VGUS charges 0.07%. On a $10,000 position that is $18 vs $7 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.60% for VGUS.
Holdings Overlap
QQQ and VGUS share 0 holdings out of 154 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 VGUS?
QQQ has an expense ratio of 0.18% while VGUS charges 0.07%. VGUS is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, QQQ or VGUS?
Over the past year QQQ returned +25.37% vs +3.49% for VGUS, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.10% vs +4.61% for VGUS. Past performance does not guarantee future results.
Which is riskier, QQQ or VGUS?
QQQ has been the more volatile fund at 30.6% annualized versus 0.7% for VGUS. Worst drawdown: QQQ -83.0% vs VGUS -0.3%.
Should I hold both QQQ and VGUS?
QQQ and VGUS have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VGUS?
QQQ and VGUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 154 unique securities.
Which pays a higher dividend, QQQ or VGUS?
QQQ yields 0.41% while VGUS yields 3.60%, so VGUS currently pays the higher dividend yield.
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