QQQ vs VPL
Invesco QQQ Trust, Series 1 vs Vanguard FTSE Pacific ETF
Quick Verdict
VPL has a lower expense ratio. VPL delivered stronger 1-year returns. VPL offers more diversification with 2292 holdings.
Side-by-Side Comparison
| Metric | QQQ | VPL | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.07% | |
| AUM | $455.8B | $8.6B | |
| Dividend Yield | 0.41% | 2.64% | |
| Holdings | 108 | 2,361 | |
| YTD Return | +18.31% | +25.97% | |
| 1Y Return | +25.37% | +38.26% | |
| 3Y Return (annualized) | +25.79% | +22.70% | |
| 5Y Return (annualized) | +15.20% | +10.36% | |
| Volatility (annualized) | 30.6% | 16.4% | |
| Max Drawdown | -83.0% | -55.5% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Mar 4, 2005 |
QQQ vs VPL Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard FTSE Pacific ETF (VPL) is a ETF from Vanguard (US). Over the past year QQQ returned +25.37% while VPL returned +38.26%. Year to date, QQQ is up 18.31% versus a gain of 25.97% for VPL.
Over three years, QQQ compounded at +25.79% per year against +22.70% for VPL; over five years the annualized figures are +15.20% and +10.36% respectively. Across the full 21-year window we track, QQQ has the edge at +13.10% annualized vs +6.86%. 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 16.4% for VPL. 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 -55.5% for VPL. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VPL charges 0.07%. On a $10,000 position that is $18 vs $7 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.64% for VPL.
Holdings Overlap
QQQ and VPL share 0 holdings out of 2395 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 VPL?
QQQ has an expense ratio of 0.18% while VPL charges 0.07%. VPL is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, QQQ or VPL?
Over the past year QQQ returned +25.37% vs +38.26% for VPL, so VPL leads on 1-year performance. Over the longest common window we track (21 years), QQQ annualized +13.10% vs +6.86% for VPL. Past performance does not guarantee future results.
Which is riskier, QQQ or VPL?
QQQ has been the more volatile fund at 30.6% annualized versus 16.4% for VPL. Worst drawdown: QQQ -83.0% vs VPL -55.5%.
Should I hold both QQQ and VPL?
QQQ and VPL have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VPL?
QQQ and VPL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2395 unique securities.
Which pays a higher dividend, QQQ or VPL?
QQQ yields 0.41% while VPL yields 2.64%, so VPL currently pays the higher dividend yield.
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