QQQ vs VTEI
Invesco QQQ Trust, Series 1 vs Vanguard Intermediate-Term Tax-Exempt Bond ETF
Which is better, QQQ or VTEI?
Large Cap Growth against Municipal Bond.
VTEI has a lower expense ratio. QQQ led over 1Y 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 | VTEI |
|---|---|---|
| Expense Ratio | 0.18% | 0.08%Best |
| AUM | $483.5B | $1.5B |
| Dividend Yield | 0.44% | 3.11% |
| Holdings | 107 | 5,977 |
| YTD Return | +15.21%Best | -3.98% |
| 1Y Return | +19.78%Best | -2.58% |
| 3Y Return (annualized) | +24.58% | - |
| 5Y Return (annualized) | +13.93% | - |
| Volatility (annualized) | 17.3% | 3.5%Best |
| Max Drawdown | -22.8% | -5.6%Best |
| $10,000 over 2.6 years | $16,699Best | $10,201 |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Tax Preferred |
| Style | Large Cap Growth | Municipal Bond |
| Inception | Mar 10, 1999 | Jan 26, 2024 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.6 years row, are measured over the window both funds cover: Jan 30, 2024 to Sep 16, 2026 (2.6 years).
QQQ vs VTEI 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 VTEI Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) is an ETF from Vanguard (US). Over the past year QQQ returned +19.78% while VTEI returned -2.58%. Year to date, QQQ is up 15.21% versus a loss of 3.98% for VTEI.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 3.5% for VTEI. 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 -22.8% for QQQ and -5.6% for VTEI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.49. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while VTEI charges 0.08%. On a $10,000 position that is $18 vs $8 annually, a gap of $10 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.11% for VTEI.
Holdings Overlap
We hold position weights for 102 holdings in QQQ and 18 in VTEI, totalling 99.9% and 0.1% 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 18 in VTEI, against full books of 107 and 5,977.
You are not choosing between two funds in isolation.
Whichever of QQQ and VTEI 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 VTEI?
QQQ has an expense ratio of 0.18% while VTEI charges 0.08%. VTEI is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, QQQ or VTEI?
Over the past year QQQ returned +19.78% vs -2.58% for VTEI, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VTEI?
QQQ has been the more volatile fund at 17.3% annualized versus 3.5% for VTEI. Worst drawdown: QQQ -22.8% vs VTEI -5.6%.
Should I hold both QQQ and VTEI?
QQQ and VTEI have a monthly-return correlation of 0.49, 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 VTEI?
QQQ yields 0.44% while VTEI yields 3.11%, so VTEI currently pays the higher dividend yield.
Is VTEI better than QQQ?
VTEI has a lower expense ratio. QQQ led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.