QQQ vs VIITX
Invesco QQQ Trust, Series 1 vs Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class
Quick Verdict
VIITX has a lower expense ratio. QQQ delivered stronger 1-year returns. VIITX offers more diversification with 2,599 holdings.
Side-by-Side Comparison
| Metric | QQQ | VIITX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.02% | |
| AUM | $496.3B | - | |
| Dividend Yield | 0.44% | 4.59% | |
| Holdings | 108 | 2,599 | |
| YTD Return | +16.64% | -1.85% | |
| 1Y Return | +27.27% | -1.39% | |
| 3Y Return (annualized) | +25.96% | +0.75% | |
| 5Y Return (annualized) | +14.54% | -2.30% | |
| Volatility (annualized) | 30.6% | 4.2% | |
| Max Drawdown | -83.0% | -15.0% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Dec 1, 1997 |
QQQ vs VIITX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US). Over the past year QQQ returned +27.27% while VIITX returned -1.39%. Year to date, QQQ is up 16.64% versus a loss of 1.85% for VIITX.
Over three years, QQQ compounded at +25.96% per year against +0.75% for VIITX; over five years the annualized figures are +14.54% and -2.30% respectively. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs -2.30%. 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 4.2% for VIITX. 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 -15.0% for VIITX. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VIITX charges 0.02%. On a $10,000 position that is $18 vs $2 annually, a gap of $16 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 4.59% for VIITX.
Holdings Overlap
QQQ and VIITX share 1 holdings out of 1286 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VIITX | Difference |
|---|---|---|---|
| TMUS | 0.82% | 0.06% | 0.76% |
Frequently Asked Questions
Which is cheaper, QQQ or VIITX?
QQQ has an expense ratio of 0.18% while VIITX charges 0.02%. VIITX is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, QQQ or VIITX?
Over the past year QQQ returned +27.27% vs -1.39% for VIITX, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.03% vs -2.30% for VIITX. Past performance does not guarantee future results.
Which is riskier, QQQ or VIITX?
QQQ has been the more volatile fund at 30.6% annualized versus 4.2% for VIITX. Worst drawdown: QQQ -83.0% vs VIITX -15.0%.
Should I hold both QQQ and VIITX?
QQQ and VIITX have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VIITX?
QQQ and VIITX share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1286 unique securities.
Which pays a higher dividend, QQQ or VIITX?
QQQ yields 0.44% while VIITX yields 4.59%, so VIITX currently pays the higher dividend yield.
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