QQQ vs VMFXX
Invesco QQQ Trust, Series 1 vs Vanguard Federal Money Market Fund Investor Class
Quick Verdict
VMFXX has a lower expense ratio. VMFXX offers more diversification with 320 holdings.
Side-by-Side Comparison
| Metric | QQQ | VMFXX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.11% | |
| AUM | $496.3B | $374.1B | |
| Dividend Yield | 0.44% | 3.46% | |
| Holdings | 108 | 320 | |
| YTD Return | +16.64% | +0.00% | |
| 1Y Return | +27.27% | - | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | - | |
| Max Drawdown | -83.0% | 0.0% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Money Market | |
| Inception | Mar 10, 1999 | Jul 13, 1981 |
QQQ vs VMFXX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Federal Money Market Fund Investor Class (VMFXX) is a mutual fund from Vanguard (US). Year to date, QQQ is up 16.64% versus a gain of 0.00% for VMFXX.
Risk: Volatility and Drawdowns
The deepest peak-to-trough decline in our data was -83.0% for QQQ and 0.0% for VMFXX. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
Fees and Cost Over Time
QQQ charges 0.18% per year while VMFXX charges 0.11%. On a $10,000 position that is $18 vs $11 annually, a gap of $7 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.46% for VMFXX.
Holdings Overlap
QQQ and VMFXX share 0 holdings out of 112 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 VMFXX?
QQQ has an expense ratio of 0.18% while VMFXX charges 0.11%. VMFXX is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
What is the holdings overlap between QQQ and VMFXX?
QQQ and VMFXX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 112 unique securities.
Which pays a higher dividend, QQQ or VMFXX?
QQQ yields 0.44% while VMFXX yields 3.46%, so VMFXX currently pays the higher dividend yield.
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