QQQ vs VTC
Invesco QQQ Trust, Series 1 vs Vanguard Total Corporate Bond ETF
Quick Verdict
VTC has a lower expense ratio. QQQ delivered stronger 1-year returns. VTC offers more diversification with 5,356 holdings.
Side-by-Side Comparison
| Metric | QQQ | VTC | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $496.3B | $1.7B | |
| Dividend Yield | 0.44% | 5.01% | |
| Holdings | 108 | 5,356 | |
| YTD Return | +16.64% | -0.43% | |
| 1Y Return | +27.27% | +2.14% | |
| 3Y Return (annualized) | +25.96% | +5.44% | |
| 5Y Return (annualized) | +14.54% | -0.27% | |
| Volatility (annualized) | 30.6% | 7.3% | |
| Max Drawdown | -83.0% | -22.4% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Nov 7, 2017 |
QQQ vs VTC Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Total Corporate Bond ETF (VTC) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VTC returned +2.14%. Year to date, QQQ is up 16.64% versus a loss of 0.43% for VTC.
Over three years, QQQ compounded at +25.96% per year against +5.44% for VTC; over five years the annualized figures are +14.54% and -0.27% respectively. Across the full 9-year window we track, QQQ has the edge at +13.03% annualized vs +0.97%. 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 7.3% for VTC. 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 -22.4% for VTC. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VTC charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 5.01% for VTC.
Holdings Overlap
QQQ and VTC share 0 holdings out of 924 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 VTC?
QQQ has an expense ratio of 0.18% while VTC charges 0.03%. VTC is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or VTC?
Over the past year QQQ returned +27.27% vs +2.14% for VTC, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +13.03% vs +0.97% for VTC. Past performance does not guarantee future results.
Which is riskier, QQQ or VTC?
QQQ has been the more volatile fund at 30.6% annualized versus 7.3% for VTC. Worst drawdown: QQQ -83.0% vs VTC -22.4%.
Should I hold both QQQ and VTC?
QQQ and VTC have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VTC?
QQQ and VTC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 924 unique securities.
Which pays a higher dividend, QQQ or VTC?
QQQ yields 0.44% while VTC yields 5.01%, so VTC currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.