QQQ vs VMO
Invesco QQQ Trust, Series 1 vs Invesco Municipal Opportunity Trust
Which is better, QQQ or VMO?
Large Cap Growth against Municipal Bond.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
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 | VMO |
|---|---|---|
| Expense Ratio | 0.18%Best | 1.86% |
| AUM | $483.5B | $2,934.54 |
| Dividend Yield | 0.44% | 7.79% |
| Holdings | 107 | 544 |
| YTD Return | +15.86%Best | +2.28% |
| 1Y Return | +22.63%Best | +6.52% |
| 3Y Return (annualized) | +24.15%Best | +9.04% |
| 5Y Return (annualized) | +14.16%Best | -1.85% |
| Volatility (annualized) | 30.6% | 12.7%Best |
| Max Drawdown | -83.0% | -60.0%Best |
| $10,000 over 5 years | $19,390Best | $9,109 |
| Fund Family | Invesco (US) | Invesco (US) |
| Category | Equity | Tax Preferred |
| Style | Large Cap Growth | Municipal Bond |
| Inception | Mar 10, 1999 | Apr 24, 1992 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 1999 to Sep 10, 2026 (27.5 years).
QQQ vs VMO 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
QQQ vs VMO Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Invesco Municipal Opportunity Trust (VMO) is an ETF from Invesco (US). Over the past year QQQ returned +22.63% while VMO returned +6.52%. Year to date, QQQ is up 15.86% versus a gain of 2.28% for VMO.
Over three years, QQQ compounded at +24.15% per year against +9.04% for VMO; over five years the annualized figures are +14.16% and -1.85% respectively. Across the full 28-year window we track, QQQ has the edge at +12.98% annualized vs -0.82%.
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 12.7% for VMO. 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 -60.0% for VMO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.14. They move largely independently of each other.
Fees and Cost Over Time
QQQ charges 0.18% per year while VMO charges 1.86%. On a $10,000 position that is $18 vs $186 annually, a gap of $168 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 7.79% for VMO.
Holdings Overlap
We hold position weights for 102 holdings in QQQ and 273 in VMO, totalling 99.9% and 87.7% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 158 days apart, QQQ as of Aug 5, 2026 and VMO as of Feb 28, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 102 positions we hold weights for in QQQ and 273 in VMO, against full books of 107 and 544.
You are not choosing between two funds in isolation.
Whichever of QQQ and VMO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or VMO?
QQQ has an expense ratio of 0.18% while VMO charges 1.86%. QQQ is the cheaper option, by $168 a year on a $10,000 investment.
Which performed better, QQQ or VMO?
Over the past year QQQ returned +22.63% vs +6.52% for VMO, so QQQ leads on 1-year performance. Over the longest common window we track (28 years), QQQ annualized +12.98% vs -0.82% for VMO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VMO?
QQQ has been the more volatile fund at 30.6% annualized versus 12.7% for VMO. Worst drawdown: QQQ -83.0% vs VMO -60.0%.
Should I hold both QQQ and VMO?
QQQ and VMO have a monthly-return correlation of 0.14, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or VMO?
QQQ yields 0.44% while VMO yields 7.79%, so VMO currently pays the higher dividend yield.
Is VMO better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.