QQQ vs VSGX
Invesco QQQ Trust, Series 1 vs Vanguard ESG International Stock ETF
Quick Verdict
VSGX has a lower expense ratio. QQQ delivered stronger 1-year returns. VSGX offers more diversification with 6,636 holdings.
Side-by-Side Comparison
| Metric | QQQ | VSGX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.10% | |
| AUM | $496.3B | $6.5B | |
| Dividend Yield | 0.44% | 2.99% | |
| Holdings | 108 | 6,636 | |
| YTD Return | +16.64% | +14.96% | |
| 1Y Return | +27.27% | +24.59% | |
| 3Y Return (annualized) | +25.96% | +20.22% | |
| 5Y Return (annualized) | +14.54% | +8.32% | |
| Volatility (annualized) | 30.6% | 16.3% | |
| Max Drawdown | -83.0% | -33.1% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Sep 18, 2018 |
QQQ vs VSGX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard ESG International Stock ETF (VSGX) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VSGX returned +24.59%. Year to date, QQQ is up 16.64% versus a gain of 14.96% for VSGX.
Over three years, QQQ compounded at +25.96% per year against +20.22% for VSGX; over five years the annualized figures are +14.54% and +8.32% respectively. Across the full 8-year window we track, QQQ has the edge at +13.03% annualized vs +8.78%. 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 16.3% for VSGX. 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 -33.1% for VSGX. 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VSGX charges 0.10%. On a $10,000 position that is $18 vs $10 annually, a gap of $8 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 2.99% for VSGX.
Holdings Overlap
QQQ and VSGX share 5 holdings out of 6225 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VSGX?
QQQ has an expense ratio of 0.18% while VSGX charges 0.10%. VSGX is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, QQQ or VSGX?
Over the past year QQQ returned +27.27% vs +24.59% for VSGX, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), QQQ annualized +13.03% vs +8.78% for VSGX. Past performance does not guarantee future results.
Which is riskier, QQQ or VSGX?
QQQ has been the more volatile fund at 30.6% annualized versus 16.3% for VSGX. Worst drawdown: QQQ -83.0% vs VSGX -33.1%.
Should I hold both QQQ and VSGX?
QQQ and VSGX have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VSGX?
QQQ and VSGX share 5 common holdings with a 1.5% weight overlap. Combined, they hold 6225 unique securities.
Which pays a higher dividend, QQQ or VSGX?
QQQ yields 0.44% while VSGX yields 2.99%, so VSGX currently pays the higher dividend yield.
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