QQQ vs VTV
Invesco QQQ Trust, Series 1 vs Vanguard Morningstar Value ETF
Quick Verdict
VTV has a lower expense ratio. VTV delivered stronger 1-year returns. VTV offers more diversification with 311 holdings.
Side-by-Side Comparison
| Metric | QQQ | VTV | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $496.3B | $187.8B | |
| Dividend Yield | 0.44% | 1.85% | |
| Holdings | 108 | 311 | |
| YTD Return | +16.23% | +18.02% | |
| 1Y Return | +26.23% | +26.57% | |
| 3Y Return (annualized) | +25.75% | +19.29% | |
| 5Y Return (annualized) | +14.78% | +12.56% | |
| Volatility (annualized) | 30.6% | 14.5% | |
| Max Drawdown | -83.0% | -61.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 26, 2004 |
QQQ vs VTV Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Morningstar Value ETF (VTV) is a ETF from Vanguard (US). Over the past year QQQ returned +26.23% while VTV returned +26.57%. Year to date, QQQ is up 16.23% versus a gain of 18.02% for VTV.
Over three years, QQQ compounded at +25.75% per year against +19.29% for VTV; over five years the annualized figures are +14.78% and +12.56% respectively. Across the full 23-year window we track, QQQ has the edge at +13.02% annualized vs +7.59%. 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 VTV. 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 -61.3% for VTV. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VTV charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.85% for VTV.
Holdings Overlap
QQQ and VTV share 38 holdings out of 372 unique holdings combined, representing a 18.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VTV?
QQQ has an expense ratio of 0.18% while VTV charges 0.03%. VTV is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or VTV?
Over the past year QQQ returned +26.23% vs +26.57% for VTV, so VTV leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.02% vs +7.59% for VTV. Past performance does not guarantee future results.
Which is riskier, QQQ or VTV?
QQQ has been the more volatile fund at 30.6% annualized versus 14.5% for VTV. Worst drawdown: QQQ -83.0% vs VTV -61.3%.
Should I hold both QQQ and VTV?
QQQ and VTV have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VTV?
QQQ and VTV share 38 common holdings with a 18.6% weight overlap. Combined, they hold 372 unique securities.
Which pays a higher dividend, QQQ or VTV?
QQQ yields 0.44% while VTV yields 1.85%, so VTV currently pays the higher dividend yield.
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