QQQ vs VTEL
Invesco QQQ Trust, Series 1 vs Vanguard Long-Term Tax-Exempt Bond ETF
Quick Verdict
VTEL has a lower expense ratio. QQQ delivered stronger 1-year returns. VTEL offers more diversification with 4,229 holdings.
Side-by-Side Comparison
| Metric | QQQ | VTEL | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.09% | |
| AUM | $496.3B | $288M | |
| Dividend Yield | 0.44% | 3.76% | |
| Holdings | 108 | 4,229 | |
| YTD Return | +16.23% | -1.84% | |
| 1Y Return | +26.23% | +4.31% | |
| 3Y Return (annualized) | +25.75% | - | |
| 5Y Return (annualized) | +14.78% | - | |
| Volatility (annualized) | 30.6% | 5.4% | |
| Max Drawdown | -83.0% | -3.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | May 6, 2025 |
QQQ vs VTEL Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) is a ETF from Vanguard (US). Over the past year QQQ returned +26.23% while VTEL returned +4.31%. Year to date, QQQ is up 16.23% versus a loss of 1.84% for VTEL.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 5.4% for VTEL. 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 -3.6% for VTEL. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VTEL charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.76% for VTEL.
Holdings Overlap
QQQ and VTEL share 0 holdings out of 759 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 VTEL?
QQQ has an expense ratio of 0.18% while VTEL charges 0.09%. VTEL is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, QQQ or VTEL?
Over the past year QQQ returned +26.23% vs +4.31% for VTEL, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.02% vs +3.81% for VTEL. Past performance does not guarantee future results.
Which is riskier, QQQ or VTEL?
QQQ has been the more volatile fund at 30.6% annualized versus 5.4% for VTEL. Worst drawdown: QQQ -83.0% vs VTEL -3.6%.
Should I hold both QQQ and VTEL?
QQQ and VTEL have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VTEL?
QQQ and VTEL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 759 unique securities.
Which pays a higher dividend, QQQ or VTEL?
QQQ yields 0.44% while VTEL yields 3.76%, so VTEL currently pays the higher dividend yield.
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