QQQ vs VT
Invesco QQQ Trust, Series 1 vs Vanguard Total World Stock ETF
Quick Verdict
VT has a lower expense ratio. QQQ delivered stronger 1-year returns. VT offers more diversification with 8927 holdings.
Side-by-Side Comparison
| Metric | QQQ | VT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $455.8B | $77.6B | |
| Dividend Yield | 0.41% | 1.61% | |
| Holdings | 108 | 10,133 | |
| YTD Return | +19.68% | +14.96% | |
| 1Y Return | +26.75% | +23.59% | |
| 3Y Return (annualized) | +26.25% | +20.84% | |
| 5Y Return (annualized) | +15.39% | +11.15% | |
| Volatility (annualized) | 30.6% | 16.6% | |
| Max Drawdown | -83.0% | -50.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 24, 2008 |
QQQ vs VT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Total World Stock ETF (VT) is a ETF from Vanguard (US). Over the past year QQQ returned +26.75% while VT returned +23.59%. Year to date, QQQ is up 19.68% versus a gain of 14.96% for VT.
Over three years, QQQ compounded at +26.25% per year against +20.84% for VT; over five years the annualized figures are +15.39% and +11.15% respectively. Across the full 18-year window we track, QQQ has the edge at +13.15% annualized vs +7.40%. 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 16.6% for VT. 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 -50.6% for VT. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VT 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 0.41% against 1.61% for VT.
Holdings Overlap
QQQ and VT share 97 holdings out of 8933 unique holdings combined, representing a 28.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VT?
QQQ has an expense ratio of 0.18% while VT charges 0.06%. VT is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or VT?
Over the past year QQQ returned +26.75% vs +23.59% for VT, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), QQQ annualized +13.15% vs +7.40% for VT. Past performance does not guarantee future results.
Which is riskier, QQQ or VT?
QQQ has been the more volatile fund at 30.6% annualized versus 16.6% for VT. Worst drawdown: QQQ -83.0% vs VT -50.6%.
Should I hold both QQQ and VT?
QQQ and VT have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VT?
QQQ and VT share 97 common holdings with a 28.7% weight overlap. Combined, they hold 8933 unique securities.
Which pays a higher dividend, QQQ or VT?
QQQ yields 0.41% while VT yields 1.61%, so VT currently pays the higher dividend yield.
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