QQQ vs VSS
Invesco QQQ Trust, Series 1 vs Vanguard FTSE All-World ex-US Small-Cap ETF
Quick Verdict
VSS has a lower expense ratio. QQQ delivered stronger 1-year returns. VSS offers more diversification with 4,828 holdings.
Side-by-Side Comparison
| Metric | QQQ | VSS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $496.3B | $11.3B | |
| Dividend Yield | 0.44% | 3.31% | |
| Holdings | 108 | 4,828 | |
| YTD Return | +16.23% | +10.71% | |
| 1Y Return | +26.23% | +19.40% | |
| 3Y Return (annualized) | +25.75% | +17.40% | |
| 5Y Return (annualized) | +14.78% | +6.67% | |
| Volatility (annualized) | 30.6% | 17.3% | |
| Max Drawdown | -83.0% | -46.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Apr 2, 2009 |
QQQ vs VSS Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is a ETF from Vanguard (US). Over the past year QQQ returned +26.23% while VSS returned +19.40%. Year to date, QQQ is up 16.23% versus a gain of 10.71% for VSS.
Over three years, QQQ compounded at +25.75% per year against +17.40% for VSS; over five years the annualized figures are +14.78% and +6.67% respectively. Across the full 17-year window we track, QQQ has the edge at +13.02% annualized vs +7.55%. 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 17.3% for VSS. 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 -46.8% for VSS. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VSS charges 0.06%. On a $10,000 position that is $18 vs $6 annually, a gap of $12 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.31% for VSS.
Holdings Overlap
QQQ and VSS share 0 holdings out of 4755 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 VSS?
QQQ has an expense ratio of 0.18% while VSS charges 0.06%. VSS is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or VSS?
Over the past year QQQ returned +26.23% vs +19.40% for VSS, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.02% vs +7.55% for VSS. Past performance does not guarantee future results.
Which is riskier, QQQ or VSS?
QQQ has been the more volatile fund at 30.6% annualized versus 17.3% for VSS. Worst drawdown: QQQ -83.0% vs VSS -46.8%.
Should I hold both QQQ and VSS?
QQQ and VSS have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VSS?
QQQ and VSS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4755 unique securities.
Which pays a higher dividend, QQQ or VSS?
QQQ yields 0.44% while VSS yields 3.31%, so VSS currently pays the higher dividend yield.
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