QQQ vs VNQ
Invesco QQQ Trust, Series 1 vs Vanguard Real Estate ETF
Which is better, QQQ or VNQ?
Large Cap Growth against Mid Cap Blend.
VNQ 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 | VNQ |
|---|---|---|
| Expense Ratio | 0.18% | 0.13%Best |
| AUM | $437.3B | $35.9B |
| Dividend Yield | 0.43% | 3.63% |
| Holdings | 208 | 144 |
| YTD Return | +12.98%Best | +12.72% |
| 1Y Return | +11.59%Best | +10.42% |
| 3Y Return (annualized) | +23.05%Best | +13.36% |
| 5Y Return (annualized) | +12.74%Best | +1.44% |
| Volatility (annualized) | 18.4%Best | 21.4% |
| Max Drawdown | -53.5%Best | -75.8% |
| $10,000 over 5 years | $18,213Best | $10,741 |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Blend |
| Inception | Mar 10, 1999 | Sep 23, 2004 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2004 to Nov 11, 2026 (22.1 years).
QQQ vs VNQ 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 VNQ Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year QQQ returned +11.59% while VNQ returned +10.42%. Year to date, QQQ is up 12.98% versus a gain of 12.72% for VNQ.
Over three years, QQQ compounded at +23.05% per year against +13.36% for VNQ; over five years the annualized figures are +12.74% and +1.44% respectively. Across the full 22-year window we track, QQQ has the edge at +14.60% annualized vs +4.06%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 18.4% for QQQ. 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 -53.5% for QQQ and -75.8% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.61. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while VNQ charges 0.13%. On a $10,000 position that is $18 vs $13 annually, a gap of $5 per year that compounds over a long holding period. On income, QQQ currently yields 0.43% against 3.63% for VNQ.
Holdings Overlap
We hold position weights for 101 holdings in QQQ and 139 in VNQ, totalling 99.7% and 84.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 101 positions we hold weights for in QQQ and 139 in VNQ, against full books of 208 and 144.
You are not choosing between two funds in isolation.
Whichever of QQQ and VNQ 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 VNQ?
QQQ has an expense ratio of 0.18% while VNQ charges 0.13%. VNQ is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, QQQ or VNQ?
Over the past year QQQ returned +11.59% vs +10.42% for VNQ, so QQQ leads on 1-year performance. Over the longest common window we track (22 years), QQQ annualized +14.60% vs +4.06% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VNQ?
VNQ has been the more volatile fund at 21.4% annualized versus 18.4% for QQQ. Worst drawdown: QQQ -53.5% vs VNQ -75.8%.
Should I hold both QQQ and VNQ?
QQQ and VNQ have a monthly-return correlation of 0.61, 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 VNQ?
QQQ yields 0.43% while VNQ yields 3.63%, so VNQ currently pays the higher dividend yield.
Is VNQ better than QQQ?
VNQ 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.