QQQ vs VTHR
Invesco QQQ Trust, Series 1 vs Vanguard Russell 3000 ETF
Quick Verdict
VTHR has a lower expense ratio. QQQ delivered stronger 1-year returns. VTHR offers more diversification with 2,929 holdings.
Side-by-Side Comparison
| Metric | QQQ | VTHR | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $496.3B | $4.7B | |
| Dividend Yield | 0.44% | 1.04% | |
| Holdings | 108 | 2,929 | |
| YTD Return | +16.64% | +13.16% | |
| 1Y Return | +27.27% | +22.27% | |
| 3Y Return (annualized) | +25.96% | +21.75% | |
| 5Y Return (annualized) | +14.54% | +12.04% | |
| Volatility (annualized) | 30.6% | 14.5% | |
| Max Drawdown | -83.0% | -34.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Sep 20, 2010 |
QQQ vs VTHR Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Russell 3000 ETF (VTHR) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VTHR returned +22.27%. Year to date, QQQ is up 16.64% versus a gain of 13.16% for VTHR.
Over three years, QQQ compounded at +25.96% per year against +21.75% for VTHR; over five years the annualized figures are +14.54% and +12.04% respectively. Across the full 16-year window we track, VTHR has the edge at +13.11% annualized vs +13.03%. 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 14.5% for VTHR. 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 -34.6% for VTHR. 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while VTHR 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 0.44% against 1.04% for VTHR.
Holdings Overlap
QQQ and VTHR share 89 holdings out of 2976 unique holdings combined, representing a 45.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VTHR?
QQQ has an expense ratio of 0.18% while VTHR charges 0.06%. VTHR is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or VTHR?
Over the past year QQQ returned +27.27% vs +22.27% for VTHR, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +13.03% vs +13.11% for VTHR. Past performance does not guarantee future results.
Which is riskier, QQQ or VTHR?
QQQ has been the more volatile fund at 30.6% annualized versus 14.5% for VTHR. Worst drawdown: QQQ -83.0% vs VTHR -34.6%.
Should I hold both QQQ and VTHR?
QQQ and VTHR have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and VTHR?
QQQ and VTHR share 89 common holdings with a 45.5% weight overlap. Combined, they hold 2976 unique securities.
Which pays a higher dividend, QQQ or VTHR?
QQQ yields 0.44% while VTHR yields 1.04%, so VTHR currently pays the higher dividend yield.
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