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 0.91.
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 | $483.5B | $480.8B |
| Dividend Yield | 0.44% | 1.02% |
| Holdings | 107 | 3,543 |
| YTD Price Return | +15.67%Best | +11.87% |
| 1Y Price Return | +19.86%Best | +15.86% |
| 3Y Price Return (annualized) | +24.15%Best | +19.31% |
| 5Y Price Return (annualized) | +13.58%Best | +10.28% |
| Volatility (annualized) | 20.9% | 16.2%Best |
| Max Drawdown | -35.6% | -26.3%Best |
| $10,000 over 5 years | $18,902Best | $16,311 |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | Nov 13, 2000 |
Not shown on this pair: Top 10 Weight.
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 0.44% and VTSAX 1.02% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2021 to Sep 11, 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 +19.86% while VTSAX returned +15.86%. Year to date, QQQ is up 15.67% versus a gain of 11.87% for VTSAX.
Over three years, QQQ compounded at +24.15% per year against +19.31% for VTSAX; over five years the annualized figures are +13.58% and +10.28% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 16.2% 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 0.91. 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 0.44% against 1.02% 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
At least 95.2% of QQQ's money is in holdings VTSAX also owns.
Stated as a floor: for VTSAX, our book for it covers 92.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
Most of QQQ is already inside VTSAX. Owning both mostly buys the same companies twice.
91 positions in common, counted across the 102 positions we hold weights for in QQQ and 2,727 in VTSAX, against full books of 107 and 3,543.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VTSAX | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.44% | 6.32% | 2.12% |
| AAPLApple, Inc | 7.27% | 5.84% | 1.43% |
| MSFTMicrosoft Corp | 5.76% | 3.81% | 1.95% |
| AMZNAmazon.Com Inc | 4.67% | 3.17% | 1.50% |
| GOOGLAlphabet Inc,class A | 3.36% | 2.88% | 0.48% |
| MUMicron Technology, Inc. | 4.43% | 1.79% | 2.64% |
| AVGOBroadcom Inc | 3.16% | 2.46% | 0.70% |
| GOOGAlphabet Inc | 3.13% | 2.27% | 0.86% |
| AMDAdvanced Micro Devices Inc | 3.45% | 1.30% | 2.15% |
| METAMeta Platforms Inc | 2.78% | 1.70% | 1.08% |
95.2% 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 +19.86% vs +15.86% 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 20.9% annualized versus 16.2% 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 0.91, 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?
At least 95.2% of QQQ's money is in holdings VTSAX also owns. Our book for VTSAX is partial, so the real figure is this or higher. They hold 91 positions in common, counted across the 102 positions we hold weights for in QQQ and 2,727 in VTSAX.
Which pays a higher dividend, QQQ or VTSAX?
QQQ yields 0.44% while VTSAX yields 1.02%, 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 0.91. Which one suits a particular account depends on what it is for. This is information, not a recommendation.