QQQ vs VTILX
Invesco QQQ Trust, Series 1 vs Vanguard Total International Bond II Index Fund Class Institutional
Quick Verdict
VTILX has a lower expense ratio. QQQ delivered stronger 1-year returns. VTILX offers more diversification with 7,391 holdings.
Side-by-Side Comparison
| Metric | QQQ | VTILX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.07% | |
| AUM | $496.3B | $141.9B | |
| Dividend Yield | 0.44% | 4.19% | |
| Holdings | 108 | 7,391 | |
| YTD Return | +16.64% | -1.42% | |
| 1Y Return | +27.27% | -3.06% | |
| 3Y Return (annualized) | +25.96% | -0.37% | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 6.0% | |
| Max Drawdown | -83.0% | -15.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 17, 2021 |
QQQ vs VTILX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Total International Bond II Index Fund Class Institutional (VTILX) is a mutual fund from Vanguard (US). Over the past year QQQ returned +27.27% while VTILX returned -3.06%. Year to date, QQQ is up 16.64% versus a loss of 1.42% for VTILX.
Over three years, QQQ compounded at +25.96% per year against -0.37% for VTILX. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs -2.90%. 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 6.0% for VTILX. 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 -15.3% for VTILX. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VTILX charges 0.07%. On a $10,000 position that is $18 vs $7 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 4.19% for VTILX.
Holdings Overlap
QQQ and VTILX share 3 holdings out of 1558 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 VTILX?
QQQ has an expense ratio of 0.18% while VTILX charges 0.07%. VTILX is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, QQQ or VTILX?
Over the past year QQQ returned +27.27% vs -3.06% for VTILX, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.03% vs -2.90% for VTILX. Past performance does not guarantee future results.
Which is riskier, QQQ or VTILX?
QQQ has been the more volatile fund at 30.6% annualized versus 6.0% for VTILX. Worst drawdown: QQQ -83.0% vs VTILX -15.3%.
Should I hold both QQQ and VTILX?
QQQ and VTILX have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VTILX?
QQQ and VTILX share 3 common holdings with a 0.0% weight overlap. Combined, they hold 1558 unique securities.
Which pays a higher dividend, QQQ or VTILX?
QQQ yields 0.44% while VTILX yields 4.19%, so VTILX currently pays the higher dividend yield.
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