QQQ vs VHT
Invesco QQQ Trust, Series 1 vs Vanguard Health Care ETF
Quick Verdict
VHT has a lower expense ratio. VHT delivered stronger 1-year returns. VHT offers more diversification with 414 holdings.
Side-by-Side Comparison
| Metric | QQQ | VHT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.09% | |
| AUM | $455.8B | $17.8B | |
| Dividend Yield | 0.41% | 1.64% | |
| Holdings | 108 | 414 | |
| YTD Return | +19.68% | +10.30% | |
| 1Y Return | +26.75% | +29.90% | |
| 3Y Return (annualized) | +26.25% | +9.99% | |
| 5Y Return (annualized) | +15.39% | +5.72% | |
| Volatility (annualized) | 30.6% | 13.9% | |
| Max Drawdown | -83.0% | -40.9% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
QQQ vs VHT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Health Care ETF (VHT) is a ETF from Vanguard (US). Over the past year QQQ returned +26.75% while VHT returned +29.90%. Year to date, QQQ is up 19.68% versus a gain of 10.30% for VHT.
Over three years, QQQ compounded at +26.25% per year against +9.99% for VHT; over five years the annualized figures are +15.39% and +5.72% respectively. Across the full 23-year window we track, QQQ has the edge at +13.15% annualized vs +8.91%. 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 13.9% for VHT. 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 -40.9% for VHT. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VHT charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.64% for VHT.
Holdings Overlap
QQQ and VHT share 9 holdings out of 493 unique holdings combined, representing a 3.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VHT?
QQQ has an expense ratio of 0.18% while VHT charges 0.09%. VHT is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, QQQ or VHT?
Over the past year QQQ returned +26.75% vs +29.90% for VHT, so VHT leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.15% vs +8.91% for VHT. Past performance does not guarantee future results.
Which is riskier, QQQ or VHT?
QQQ has been the more volatile fund at 30.6% annualized versus 13.9% for VHT. Worst drawdown: QQQ -83.0% vs VHT -40.9%.
Should I hold both QQQ and VHT?
QQQ and VHT have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VHT?
QQQ and VHT share 9 common holdings with a 3.7% weight overlap. Combined, they hold 493 unique securities.
Which pays a higher dividend, QQQ or VHT?
QQQ yields 0.41% while VHT yields 1.64%, so VHT currently pays the higher dividend yield.
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