QQQ vs VO
Invesco QQQ Trust, Series 1 vs Vanguard Morningstar Mid-Cap ETF
Quick Verdict
VO has a lower expense ratio. QQQ delivered stronger 1-year returns. VO offers more diversification with 289 holdings.
Side-by-Side Comparison
| Metric | QQQ | VO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $496.3B | $106.6B | |
| Dividend Yield | 0.44% | 1.32% | |
| Holdings | 108 | 289 | |
| YTD Return | +16.23% | +13.60% | |
| 1Y Return | +26.23% | +16.94% | |
| 3Y Return (annualized) | +25.75% | +17.25% | |
| 5Y Return (annualized) | +14.78% | +8.13% | |
| Volatility (annualized) | 30.6% | 16.9% | |
| Max Drawdown | -83.0% | -60.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
QQQ vs VO Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Morningstar Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year QQQ returned +26.23% while VO returned +16.94%. Year to date, QQQ is up 16.23% versus a gain of 13.60% for VO.
Over three years, QQQ compounded at +25.75% per year against +17.25% for VO; over five years the annualized figures are +14.78% and +8.13% respectively. Across the full 23-year window we track, QQQ has the edge at +13.02% annualized vs +9.19%. 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 16.9% for VO. 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 -60.3% for VO. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VO charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.32% for VO.
Holdings Overlap
QQQ and VO share 40 holdings out of 341 unique holdings combined, representing a 10.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VO?
QQQ has an expense ratio of 0.18% while VO charges 0.03%. VO is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or VO?
Over the past year QQQ returned +26.23% vs +16.94% for VO, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.02% vs +9.19% for VO. Past performance does not guarantee future results.
Which is riskier, QQQ or VO?
QQQ has been the more volatile fund at 30.6% annualized versus 16.9% for VO. Worst drawdown: QQQ -83.0% vs VO -60.3%.
Should I hold both QQQ and VO?
QQQ and VO have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VO?
QQQ and VO share 40 common holdings with a 10.7% weight overlap. Combined, they hold 341 unique securities.
Which pays a higher dividend, QQQ or VO?
QQQ yields 0.44% while VO yields 1.32%, so VO currently pays the higher dividend yield.
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