QQQ vs VLT
Invesco QQQ Trust, Series 1 vs Invesco High Income Trust II
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VLT offers more diversification with 198 holdings.
Side-by-Side Comparison
| Metric | QQQ | VLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.95% | |
| AUM | $455.8B | $3,093.5 | |
| Dividend Yield | 0.41% | 10.36% | |
| Holdings | 108 | 270 | |
| YTD Return | +18.31% | -3.73% | |
| 1Y Return | +25.37% | +1.00% | |
| 3Y Return (annualized) | +25.79% | +8.97% | |
| 5Y Return (annualized) | +15.20% | +2.24% | |
| Volatility (annualized) | 30.6% | 19.9% | |
| Max Drawdown | -83.0% | -89.4% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Apr 28, 1989 |
QQQ vs VLT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco High Income Trust II (VLT) is a ETF from Invesco (US). Over the past year QQQ returned +25.37% while VLT returned +1.00%. Year to date, QQQ is up 18.31% versus a loss of 3.73% for VLT.
Over three years, QQQ compounded at +25.79% per year against +8.97% for VLT; over five years the annualized figures are +15.20% and +2.24% respectively. Across the full 27-year window we track, QQQ has the edge at +13.10% annualized vs -2.92%. 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 19.9% for VLT. 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 -89.4% for VLT. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VLT charges 1.95%. On a $10,000 position that is $18 vs $195 annually, a gap of $177 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 10.36% for VLT.
Holdings Overlap
QQQ and VLT share 0 holdings out of 301 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 VLT?
QQQ has an expense ratio of 0.18% while VLT charges 1.95%. QQQ is the cheaper option. On a $10,000 investment, that is $177 per year of difference.
Which performed better, QQQ or VLT?
Over the past year QQQ returned +25.37% vs +1.00% for VLT, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), QQQ annualized +13.10% vs -2.92% for VLT. Past performance does not guarantee future results.
Which is riskier, QQQ or VLT?
QQQ has been the more volatile fund at 30.6% annualized versus 19.9% for VLT. Worst drawdown: QQQ -83.0% vs VLT -89.4%.
Should I hold both QQQ and VLT?
QQQ and VLT have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VLT?
QQQ and VLT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 301 unique securities.
Which pays a higher dividend, QQQ or VLT?
QQQ yields 0.41% while VLT yields 10.36%, so VLT currently pays the higher dividend yield.
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