QQQ vs VNQ
QQQ vs VNQ
Invesco QQQ Trust, Series 1 vs Vanguard Real Estate ETF
Quick Verdict
VNQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VNQ offers more diversification with 144 holdings.
Side-by-Side Comparison
| Metric | QQQ | VNQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.13% | |
| AUM | $455.8B | $38.2B | |
| Dividend Yield | 0.41% | 3.52% | |
| Holdings | 108 | 144 | |
| YTD Return | +18.20% | +13.37% | |
| 1Y Return | +27.63% | +13.85% | |
| 3Y Return (annualized) | +25.54% | +9.90% | |
| 5Y Return (annualized) | +15.12% | +2.33% | |
| Volatility (annualized) | 30.6% | 21.4% | |
| Max Drawdown | -83.0% | -75.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Sep 23, 2004 |
QQQ vs VNQ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US). Over the past year QQQ returned +27.63% while VNQ returned +13.85%. Year to date, QQQ is up 18.20% versus a gain of 13.37% for VNQ.
Over three years, QQQ compounded at +25.54% per year against +9.90% for VNQ; over five years the annualized figures are +15.12% and +2.33% respectively. Across the full 22-year window we track, QQQ has the edge at +13.11% annualized vs +4.13%. 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 21.4% for VNQ. 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 -75.8% for VNQ. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
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 0.41% against 3.52% for VNQ.
Holdings Overlap
QQQ and VNQ share 0 holdings out of 247 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 VNQ?
QQQ has an expense ratio of 0.18% while VNQ charges 0.13%. VNQ is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, QQQ or VNQ?
Over the past year QQQ returned +27.63% vs +13.85% for VNQ, so QQQ leads on 1-year performance. Over the longest common window we track (22 years), QQQ annualized +13.11% vs +4.13% for VNQ. Past performance does not guarantee future results.
Which is riskier, QQQ or VNQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.4% for VNQ. Worst drawdown: QQQ -83.0% vs VNQ -75.8%.
Should I hold both QQQ and VNQ?
QQQ and VNQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VNQ?
QQQ and VNQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 247 unique securities.
Which pays a higher dividend, QQQ or VNQ?
QQQ yields 0.41% while VNQ yields 3.52%, so VNQ currently pays the higher dividend yield.
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