QQQ vs VSDB

QQQ vs VSDB

Which is better, QQQ or VSDB?

Large Cap Growth against Short Term Mid Quality.

VSDB has a lower expense ratio. QQQ led over 1Y and the full window.

Lower Fees: VSDBHigher Returns: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricQQQVSDB
Expense Ratio0.18%0.15%Best
AUM$483.5B$920M
Dividend Yield0.44%4.22%
Holdings1071,413
YTD Return+15.18%Best-1.78%
1Y Return+19.65%Best-0.51%
3Y Return (annualized)+24.60%-
5Y Return (annualized)+13.94%-
Volatility (annualized)19.9%2.2%Best
Max Drawdown-12.0%-2.5%Best
$10,000 over 1.5 years$15,969Best$10,418
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityFixed Income
StyleLarge Cap GrowthShort Term Mid Quality
InceptionMar 10, 1999Apr 1, 2025

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 1.5 years row, are measured over the window both funds cover: Apr 3, 2025 to Sep 15, 2026 (1.5 years).

QQQ vs VSDB growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

QQQ vs VSDB Performance

Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard Short Duration Bond ETF (VSDB) is an ETF from Vanguard (US). Over the past year QQQ returned +19.65% while VSDB returned -0.51%. Year to date, QQQ is up 15.18% versus a loss of 1.78% for VSDB.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 2.2% for VSDB. 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 -12.0% for QQQ and -2.5% for VSDB. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.31. They move together some of the time, and apart the rest.

Fees and Cost Over Time

QQQ charges 0.18% per year while VSDB charges 0.15%. On a $10,000 position that is $18 vs $15 annually, a gap of $3 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 4.22% for VSDB.

Holdings Overlap

We hold position weights for 102 holdings in QQQ and 620 in VSDB, totalling 99.9% and 42.4% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 102 positions we hold weights for in QQQ and 620 in VSDB, against full books of 107 and 1,413.

You are not choosing between two funds in isolation.

Whichever of QQQ and VSDB you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

QQQVSDB

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, QQQ or VSDB?

QQQ has an expense ratio of 0.18% while VSDB charges 0.15%. VSDB is the cheaper option, by $3 a year on a $10,000 investment.

Which performed better, QQQ or VSDB?

Over the past year QQQ returned +19.65% vs -0.51% for VSDB, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +36.62% vs +2.77% for VSDB. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, QQQ or VSDB?

QQQ has been the more volatile fund at 19.9% annualized versus 2.2% for VSDB. Worst drawdown: QQQ -12.0% vs VSDB -2.5%.

Should I hold both QQQ and VSDB?

QQQ and VSDB have a monthly-return correlation of 0.31, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, QQQ or VSDB?

QQQ yields 0.44% while VSDB yields 4.22%, so VSDB currently pays the higher dividend yield.

Is VSDB better than QQQ?

VSDB has a lower expense ratio. QQQ led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.