QQQ vs VRIG
QQQ vs VRIG
Invesco QQQ Trust, Series 1 vs Invesco Variable Rate Investment Grade ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VRIG offers more diversification with 306 holdings.
Side-by-Side Comparison
| Metric | QQQ | VRIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.30% | |
| AUM | $455.8B | $1.8B | |
| Dividend Yield | 0.41% | 4.71% | |
| Holdings | 108 | 364 | |
| YTD Return | +18.20% | +2.58% | |
| 1Y Return | +27.63% | +4.65% | |
| 3Y Return (annualized) | +25.54% | +5.72% | |
| 5Y Return (annualized) | +15.12% | +4.57% | |
| Volatility (annualized) | 30.6% | 3.4% | |
| Max Drawdown | -83.0% | -14.3% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Sep 20, 2016 |
QQQ vs VRIG Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco Variable Rate Investment Grade ETF (VRIG) is a ETF from Invesco (US). Over the past year QQQ returned +27.63% while VRIG returned +4.65%. Year to date, QQQ is up 18.20% versus a gain of 2.58% for VRIG.
Over three years, QQQ compounded at +25.54% per year against +5.72% for VRIG; over five years the annualized figures are +15.12% and +4.57% respectively. Across the full 10-year window we track, QQQ has the edge at +13.11% annualized vs +2.36%. 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 3.4% for VRIG. 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 -14.3% for VRIG. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VRIG charges 0.30%. On a $10,000 position that is $18 vs $30 annually, a gap of $12 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.71% for VRIG.
Holdings Overlap
QQQ and VRIG share 0 holdings out of 409 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 VRIG?
QQQ has an expense ratio of 0.18% while VRIG charges 0.30%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or VRIG?
Over the past year QQQ returned +27.63% vs +4.65% for VRIG, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), QQQ annualized +13.11% vs +2.36% for VRIG. Past performance does not guarantee future results.
Which is riskier, QQQ or VRIG?
QQQ has been the more volatile fund at 30.6% annualized versus 3.4% for VRIG. Worst drawdown: QQQ -83.0% vs VRIG -14.3%.
Should I hold both QQQ and VRIG?
QQQ and VRIG have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VRIG?
QQQ and VRIG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 409 unique securities.
Which pays a higher dividend, QQQ or VRIG?
QQQ yields 0.41% while VRIG yields 4.71%, so VRIG currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.