QQQ vs VSLU
Invesco QQQ Trust, Series 1 vs Applied Finance Valuation Large Cap ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VSLU offers more diversification with 591 holdings.
Side-by-Side Comparison
| Metric | QQQ | VSLU | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.49% | |
| AUM | $496.3B | $569M | |
| Dividend Yield | 0.44% | 0.43% | |
| Holdings | 108 | 591 | |
| YTD Return | +16.64% | +11.31% | |
| 1Y Return | +27.27% | +20.26% | |
| 3Y Return (annualized) | +25.96% | +22.01% | |
| 5Y Return (annualized) | +14.54% | +13.19% | |
| Volatility (annualized) | 30.6% | 14.8% | |
| Max Drawdown | -83.0% | -23.9% | |
| Fund Family | Invesco (US) | Applied Finance Funds | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Apr 29, 2021 |
QQQ vs VSLU Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Applied Finance Valuation Large Cap ETF (VSLU) is a ETF from Applied Finance Funds. Over the past year QQQ returned +27.27% while VSLU returned +20.26%. Year to date, QQQ is up 16.64% versus a gain of 11.31% for VSLU.
Over three years, QQQ compounded at +25.96% per year against +22.01% for VSLU; over five years the annualized figures are +14.54% and +13.19% respectively. Across the full 5-year window we track, VSLU has the edge at +14.08% annualized vs +13.03%. 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 14.8% for VSLU. 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 -23.9% for VSLU. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VSLU charges 0.49%. On a $10,000 position that is $18 vs $49 annually, a gap of $31 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.43% for VSLU.
Holdings Overlap
QQQ and VSLU share 56 holdings out of 632 unique holdings combined, representing a 45.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VSLU?
QQQ has an expense ratio of 0.18% while VSLU charges 0.49%. QQQ is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, QQQ or VSLU?
Over the past year QQQ returned +27.27% vs +20.26% for VSLU, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.03% vs +14.08% for VSLU. Past performance does not guarantee future results.
Which is riskier, QQQ or VSLU?
QQQ has been the more volatile fund at 30.6% annualized versus 14.8% for VSLU. Worst drawdown: QQQ -83.0% vs VSLU -23.9%.
Should I hold both QQQ and VSLU?
QQQ and VSLU have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VSLU?
QQQ and VSLU share 56 common holdings with a 45.1% weight overlap. Combined, they hold 632 unique securities.
Which pays a higher dividend, QQQ or VSLU?
QQQ yields 0.44% while VSLU yields 0.43%, so QQQ currently pays the higher dividend yield.
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