QQQ vs VTP

Quick Verdict

VTP has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: VTPHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQVTPWinner
Expense Ratio0.18%0.05%
AUM$455.8B$159M
Dividend Yield0.41%1.61%
Holdings10851
YTD Return+17.46%+0.64%
1Y Return+26.02%+1.77%
3Y Return (annualized)+25.51%-
5Y Return (annualized)+15.12%-
Volatility (annualized)30.6%2.9%
Max Drawdown-83.0%-1.9%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityFixed Income
InceptionMar 10, 1999Jul 7, 2025

QQQ vs VTP Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Total Inflation-Protected Securities ETF (VTP) is a ETF from Vanguard (US). Over the past year QQQ returned +26.02% while VTP returned +1.77%. Year to date, QQQ is up 17.46% versus a gain of 0.64% for VTP.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 2.9% for VTP. 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 -1.9% for VTP. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while VTP charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.61% for VTP.

Holdings Overlap

0.0%overlap

QQQ and VTP share 0 holdings out of 146 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 VTP?

QQQ has an expense ratio of 0.18% while VTP charges 0.05%. VTP is the cheaper option. On a $10,000 investment, that is $13 per year of difference.

Which performed better, QQQ or VTP?

Over the past year QQQ returned +26.02% vs +1.77% for VTP, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.08% vs +2.64% for VTP. Past performance does not guarantee future results.

Which is riskier, QQQ or VTP?

QQQ has been the more volatile fund at 30.6% annualized versus 2.9% for VTP. Worst drawdown: QQQ -83.0% vs VTP -1.9%.

Should I hold both QQQ and VTP?

QQQ and VTP have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and VTP?

QQQ and VTP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 146 unique securities.

Which pays a higher dividend, QQQ or VTP?

QQQ yields 0.41% while VTP yields 1.61%, so VTP currently pays the higher dividend yield.

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