QQQ vs VIOO
Invesco QQQ Trust, Series 1 vs Vanguard S&P Small-Cap 600 ETF
Quick Verdict
VIOO has a lower expense ratio. VIOO delivered stronger 1-year returns. VIOO offers more diversification with 613 holdings.
Side-by-Side Comparison
| Metric | QQQ | VIOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.07% | |
| AUM | $496.3B | $4.2B | |
| Dividend Yield | 0.44% | 1.12% | |
| Holdings | 108 | 613 | |
| YTD Return | +16.64% | +21.86% | |
| 1Y Return | +27.27% | +30.92% | |
| 3Y Return (annualized) | +25.96% | +16.42% | |
| 5Y Return (annualized) | +14.54% | +7.73% | |
| Volatility (annualized) | 30.6% | 18.9% | |
| Max Drawdown | -83.0% | -44.1% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Sep 7, 2010 |
QQQ vs VIOO Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard S&P Small-Cap 600 ETF (VIOO) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VIOO returned +30.92%. Year to date, QQQ is up 16.64% versus a gain of 21.86% for VIOO.
Over three years, QQQ compounded at +25.96% per year against +16.42% for VIOO; over five years the annualized figures are +14.54% and +7.73% respectively. Across the full 16-year window we track, QQQ has the edge at +13.03% annualized vs +12.49%. 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 18.9% for VIOO. 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 -44.1% for VIOO. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VIOO 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 0.44% against 1.12% for VIOO.
Holdings Overlap
QQQ and VIOO share 0 holdings out of 709 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 VIOO?
QQQ has an expense ratio of 0.18% while VIOO charges 0.07%. VIOO is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, QQQ or VIOO?
Over the past year QQQ returned +27.27% vs +30.92% for VIOO, so VIOO leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +13.03% vs +12.49% for VIOO. Past performance does not guarantee future results.
Which is riskier, QQQ or VIOO?
QQQ has been the more volatile fund at 30.6% annualized versus 18.9% for VIOO. Worst drawdown: QQQ -83.0% vs VIOO -44.1%.
Should I hold both QQQ and VIOO?
QQQ and VIOO have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VIOO?
QQQ and VIOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 709 unique securities.
Which pays a higher dividend, QQQ or VIOO?
QQQ yields 0.44% while VIOO yields 1.12%, so VIOO currently pays the higher dividend yield.
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