QQQ vs VLU
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P 1500 Value Tilt ETF
Which is better, QQQ or VLU?
Large Cap Growth against Large Cap Value.
VLU has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, VLU over 1Y. VLU is less concentrated, with 18.4% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | VLU |
|---|---|---|
| Expense Ratio | 0.18% | 0.12%Best |
| AUM | $483.5B | $761M |
| Dividend Yield | 0.44% | 1.57% |
| Holdings | 107 | 1,476 |
| YTD Return | +15.21% | +16.00%Best |
| 1Y Return | +19.78% | +22.10%Best |
| 3Y Return (annualized) | +24.58%Best | +19.75% |
| 5Y Return (annualized) | +13.93%Best | +12.69% |
| Volatility (annualized) | 17.6% | 15.8%Best |
| Max Drawdown | -35.1%Best | -37.9% |
| $10,000 over 5 years | $19,195Best | $18,173 |
| Top 10 Weight | 46.5% | 18.4%Best |
| Fund Family | Invesco (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Mar 10, 1999 | Oct 24, 2012 |
Volatility and max drawdown are measured over the window both funds cover: Oct 25, 2012 to Sep 16, 2026 (13.9 years).
QQQ vs VLU growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 13.9 years both funds cover.
QQQ vs VLU Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street SPDR S&P 1500 Value Tilt ETF (VLU) is an ETF from State Street Investment Management. Over the past year QQQ returned +19.78% while VLU returned +22.10%. Year to date, QQQ is up 15.21% versus a gain of 16.00% for VLU.
Over three years, QQQ compounded at +24.58% per year against +19.75% for VLU; over five years the annualized figures are +13.93% and +12.69% respectively. Across the full 14-year window we track, QQQ has the edge at +18.97% annualized vs +11.45%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.6% compared with 15.8% for VLU. 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 -35.1% for QQQ and -37.9% for VLU. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VLU charges 0.12%. On a $10,000 position that is $18 vs $12 annually, a gap of $6 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.57% for VLU.
Holdings Overlap
93.8% of QQQ's money is in holdings VLU also owns. 25.7% of VLU's money is in holdings QQQ also owns.
Most of QQQ is already inside VLU. Owning both mostly buys the same companies twice.
86 positions in common, counted across the 102 positions we hold weights for in QQQ and 1,454 in VLU, against full books of 107 and 1,476.
What only one of them owns
Our book lists 1,168 positions for VLU that do not appear in our book for QQQ (72.4% of the fund), and 10 for QQQ that do not appear in VLU (3.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VLU | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.44% | 0.98% | 7.46% |
| AAPLApple, Inc | 7.27% | 1.99% | 5.28% |
| MSFTMicrosoft Corp | 5.76% | 3.03% | 2.73% |
| AMZNAmazon.Com Inc | 4.67% | 2.79% | 1.88% |
| MUMicron Technology, Inc. | 4.43% | 0.99% | 3.44% |
| GOOGAlphabet Inc | 3.13% | 1.53% | 1.60% |
| AMDAdvanced Micro Devices Inc | 3.45% | 0.71% | 2.74% |
| GOOGLAlphabet Inc,class A | 3.36% | 0.55% | 2.81% |
| METAMeta Platforms Inc | 2.78% | 1.13% | 1.65% |
| AVGOBroadcom Inc | 3.16% | 0.46% | 2.70% |
93.8% of QQQ is already inside VLU.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or VLU?
QQQ has an expense ratio of 0.18% while VLU charges 0.12%. VLU is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, QQQ or VLU?
Over the past year QQQ returned +19.78% vs +22.10% for VLU, so VLU leads on 1-year performance. Over the longest common window we track (14 years), QQQ annualized +18.97% vs +11.45% for VLU. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VLU?
QQQ has been the more volatile fund at 17.6% annualized versus 15.8% for VLU. Worst drawdown: QQQ -35.1% vs VLU -37.9%.
Should I hold both QQQ and VLU?
QQQ and VLU have a monthly-return correlation of 0.73, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and VLU?
93.8% of QQQ's money is in holdings VLU also owns. 25.7% of VLU's is in holdings QQQ also owns. They hold 86 positions in common, counted across the 102 positions we hold weights for in QQQ and 1,454 in VLU.
Which pays a higher dividend, QQQ or VLU?
QQQ yields 0.44% while VLU yields 1.57%, so VLU currently pays the higher dividend yield.
Is VLU better than QQQ?
VLU has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, VLU over 1Y. VLU is less concentrated, with 18.4% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.