QQQ vs VTEC
Invesco QQQ Trust, Series 1 vs Vanguard California Tax-Exempt Bond ETF
Quick Verdict
VTEC has a lower expense ratio. QQQ delivered stronger 1-year returns. VTEC offers more diversification with 702 holdings.
Side-by-Side Comparison
| Metric | QQQ | VTEC | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $455.8B | $2.8B | |
| Dividend Yield | 0.41% | 3.14% | |
| Holdings | 108 | 3,617 | |
| YTD Return | +17.85% | -1.19% | |
| 1Y Return | +26.45% | +2.84% | |
| 3Y Return (annualized) | +26.07% | - | |
| 5Y Return (annualized) | +15.16% | - | |
| Volatility (annualized) | 30.6% | 3.9% | |
| Max Drawdown | -83.0% | -4.5% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | Jan 26, 2024 |
QQQ vs VTEC Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard California Tax-Exempt Bond ETF (VTEC) is a ETF from Vanguard (US). Over the past year QQQ returned +26.45% while VTEC returned +2.84%. Year to date, QQQ is up 17.85% versus a loss of 1.19% for VTEC.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.9% for VTEC. 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 -4.5% for VTEC. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VTEC 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 3.14% for VTEC.
Holdings Overlap
QQQ and VTEC share 0 holdings out of 805 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 VTEC?
QQQ has an expense ratio of 0.18% while VTEC charges 0.06%. VTEC is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or VTEC?
Over the past year QQQ returned +26.45% vs +2.84% for VTEC, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.09% vs +1.55% for VTEC. Past performance does not guarantee future results.
Which is riskier, QQQ or VTEC?
QQQ has been the more volatile fund at 30.6% annualized versus 3.9% for VTEC. Worst drawdown: QQQ -83.0% vs VTEC -4.5%.
Should I hold both QQQ and VTEC?
QQQ and VTEC have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VTEC?
QQQ and VTEC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 805 unique securities.
Which pays a higher dividend, QQQ or VTEC?
QQQ yields 0.41% while VTEC yields 3.14%, so VTEC currently pays the higher dividend yield.
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