QQQ vs VOTE
Invesco QQQ Trust, Series 1 vs TCW Transform 500 ETF
Quick Verdict
VOTE has a lower expense ratio. QQQ delivered stronger 1-year returns. VOTE offers more diversification with 496 holdings.
Side-by-Side Comparison
| Metric | QQQ | VOTE | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $455.8B | $1.1B | |
| Dividend Yield | 0.41% | 0.95% | |
| Holdings | 108 | 507 | |
| YTD Return | +19.68% | +14.78% | |
| 1Y Return | +26.75% | +22.18% | |
| 3Y Return (annualized) | +26.25% | +22.13% | |
| 5Y Return (annualized) | +15.39% | +12.98% | |
| Volatility (annualized) | 30.6% | 15.9% | |
| Max Drawdown | -83.0% | -25.7% | |
| Fund Family | Invesco (US) | TCW ETFs | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 22, 2021 |
QQQ vs VOTE Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and TCW Transform 500 ETF (VOTE) is a ETF from TCW ETFs. Over the past year QQQ returned +26.75% while VOTE returned +22.18%. Year to date, QQQ is up 19.68% versus a gain of 14.78% for VOTE.
Over three years, QQQ compounded at +26.25% per year against +22.13% for VOTE; over five years the annualized figures are +15.39% and +12.98% respectively. Across the full 5-year window we track, VOTE has the edge at +13.79% annualized vs +13.15%. 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 15.9% for VOTE. 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 -25.7% for VOTE. 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while VOTE charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.95% for VOTE.
Holdings Overlap
QQQ and VOTE share 90 holdings out of 509 unique holdings combined, representing a 53.8% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, QQQ or VOTE?
QQQ has an expense ratio of 0.18% while VOTE charges 0.05%. VOTE is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, QQQ or VOTE?
Over the past year QQQ returned +26.75% vs +22.18% for VOTE, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.15% vs +13.79% for VOTE. Past performance does not guarantee future results.
Which is riskier, QQQ or VOTE?
QQQ has been the more volatile fund at 30.6% annualized versus 15.9% for VOTE. Worst drawdown: QQQ -83.0% vs VOTE -25.7%.
Should I hold both QQQ and VOTE?
QQQ and VOTE have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and VOTE?
QQQ and VOTE share 90 common holdings with a 53.8% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, QQQ or VOTE?
QQQ yields 0.41% while VOTE yields 0.95%, so VOTE currently pays the higher dividend yield.
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