QQQ vs VTSAX
Invesco QQQ Trust, Series 1 vs Vanguard Morningstar Total Stock Market Index Fund Admiral Class
Which is better, QQQ or VTSAX?
Large Cap Growth against Large Cap Blend.
VTSAX has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. VTSAX is less concentrated, with 34.7% of the fund in its ten largest positions against 46.9%.
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 | VTSAX |
|---|---|---|
| Expense Ratio | 0.18% | 0.04%Best |
| AUM | $437.3B | $480.6B |
| Dividend Yield | 0.43% | 1.05% |
| Holdings | 208 | 3,517 |
| YTD Price Return | +12.60%Best | +9.84% |
| 1Y Price Return | +11.07%Best | +10.32% |
| 3Y Price Return (annualized) | +22.36%Best | +19.41% |
| 5Y Price Return (annualized) | +12.07%Best | +8.87% |
| Volatility (annualized) | 21.1% | 16.0%Best |
| Max Drawdown | -35.6% | -26.3%Best |
| $10,000 over 5 years | $17,679Best | $15,295 |
| Top 10 Weight | 46.9% | 34.7%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | Nov 13, 2000 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VTSAX. Both funds are measured the same way, so the comparison holds. QQQ yields 0.43% and VTSAX 1.05% on top.
Volatility and max drawdown are measured over the window both funds cover: Nov 12, 2021 to Nov 10, 2026 (5 years).
QQQ vs VTSAX 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 covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
QQQ vs VTSAX Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard Morningstar Total Stock Market Index Fund Admiral Class (VTSAX) is a mutual fund from Vanguard (US). Over the past year QQQ returned +11.07% while VTSAX returned +10.32%. Year to date, QQQ is up 12.60% versus a gain of 9.84% for VTSAX.
Over three years, QQQ compounded at +22.36% per year against +19.41% for VTSAX; over five years the annualized figures are +12.07% and +8.87% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 21.1% compared with 16.0% for VTSAX. 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 -35.6% for QQQ and -26.3% for VTSAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 VTSAX charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, QQQ currently yields 0.43% against 1.05% for VTSAX.
Structure and taxes
VTSAX is a mutual fund and QQQ is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
96.1% of QQQ's money is in holdings VTSAX also owns. 49.9% of VTSAX's money is in holdings QQQ also owns.
Most of QQQ is already inside VTSAX. Owning both mostly buys the same companies twice.
91 positions in common, counted across the 101 positions we hold weights for in QQQ and 3,410 in VTSAX, against full books of 208 and 3,517.
What only one of them owns
Our book lists 1,031 positions for VTSAX that do not appear in our book for QQQ (46.8% of the fund), and 3 for QQQ that do not appear in VTSAX (1.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VTSAX | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.05% | 7.13% | 0.92% |
| AAPLApple Inc | 7.68% | 6.63% | 1.05% |
| MSFTMicrosoft Corp | 6.16% | 5.20% | 0.96% |
| AMZNAmazon.Com Inc | 4.23% | 3.30% | 0.93% |
| MUMicron Technology, Inc. | 4.47% | 1.64% | 2.83% |
| GOOGLAlphabet Inc | 3.15% | 2.76% | 0.39% |
| METAMeta Platforms Inc | 3.37% | 2.18% | 1.19% |
| AMDAdvanced Micro Devices Inc | 3.90% | 1.36% | 2.54% |
| GOOGAlphabet Inc. C | 2.93% | 2.18% | 0.75% |
| AVGOBroadcom Inc | 2.52% | 2.28% | 0.24% |
96.1% of QQQ is already inside VTSAX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or VTSAX?
QQQ has an expense ratio of 0.18% while VTSAX charges 0.04%. VTSAX is the cheaper option, by $14 a year on a $10,000 investment.
Which performed better, QQQ or VTSAX?
Over the past year QQQ returned +11.07% vs +10.32% for VTSAX, 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 VTSAX?
QQQ has been the more volatile fund at 21.1% annualized versus 16.0% for VTSAX. Worst drawdown: QQQ -35.6% vs VTSAX -26.3%.
Should I hold both QQQ and VTSAX?
QQQ and VTSAX have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between QQQ and VTSAX?
96.1% of QQQ's money is in holdings VTSAX also owns. 49.9% of VTSAX's is in holdings QQQ also owns. They hold 91 positions in common, counted across the 101 positions we hold weights for in QQQ and 3,410 in VTSAX.
Which pays a higher dividend, QQQ or VTSAX?
QQQ yields 0.43% while VTSAX yields 1.05%, so VTSAX currently pays the higher dividend yield.
Is it better to hold VTSAX or QQQ in a taxable account?
QQQ is an ETF and VTSAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VTSAX better than QQQ?
VTSAX has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. VTSAX is less concentrated, with 34.7% of the fund in its ten largest positions against 46.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.