QQQ vs VTEB
Invesco QQQ Trust, Series 1 vs Vanguard Tax-Exempt Bond ETF
Which is better, QQQ or VTEB?
Large Cap Growth against Municipal Bond.
VTEB has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | VTEB |
|---|---|---|
| Expense Ratio | 0.18% | 0.03%Best |
| AUM | $483.5B | $48.5B |
| Dividend Yield | 0.44% | 3.44% |
| Holdings | 107 | 10,566 |
| YTD Return | +22.20%Best | -2.11% |
| 1Y Return | +24.58%Best | -0.53% |
| 3Y Return (annualized) | +28.38%Best | +3.09% |
| 5Y Return (annualized) | +15.80%Best | +0.09% |
| Volatility (annualized) | 18.8% | 4.9%Best |
| Max Drawdown | -35.1% | -17.0%Best |
| $10,000 over 5 years | $20,823Best | $10,045 |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Tax Preferred |
| Style | Large Cap Growth | Municipal Bond |
| Inception | Mar 10, 1999 | Aug 21, 2015 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Aug 25, 2015 to Sep 22, 2026 (11.1 years).
QQQ vs VTEB growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
QQQ vs VTEB Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is an ETF from Vanguard (US). Over the past year QQQ returned +24.58% while VTEB returned -0.53%. Year to date, QQQ is up 22.20% versus a loss of 2.11% for VTEB.
Over three years, QQQ compounded at +28.38% per year against +3.09% for VTEB; over five years the annualized figures are +15.80% and +0.09% respectively. Across the full 11-year window we track, QQQ has the edge at +20.47% annualized vs +1.01%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 4.9% for VTEB. 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 -35.1% for QQQ and -17.0% for VTEB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.42. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while VTEB 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 3.44% for VTEB.
Holdings Overlap
We hold position weights for 102 holdings in QQQ and 17 in VTEB, totalling 99.9% and 0.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 102 positions we hold weights for in QQQ and 17 in VTEB, against full books of 107 and 10,566.
You are not choosing between two funds in isolation.
Whichever of QQQ and VTEB you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or VTEB?
QQQ has an expense ratio of 0.18% while VTEB charges 0.03%. VTEB is the cheaper option, by $15 a year on a $10,000 investment.
Which performed better, QQQ or VTEB?
Over the past year QQQ returned +24.58% vs -0.53% for VTEB, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), QQQ annualized +20.47% vs +1.01% for VTEB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VTEB?
QQQ has been the more volatile fund at 18.8% annualized versus 4.9% for VTEB. Worst drawdown: QQQ -35.1% vs VTEB -17.0%.
Should I hold both QQQ and VTEB?
QQQ and VTEB have a monthly-return correlation of 0.42, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or VTEB?
QQQ yields 0.44% while VTEB yields 3.44%, so VTEB currently pays the higher dividend yield.
Is VTEB better than QQQ?
VTEB has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.