QQQ vs VTWAX
Invesco QQQ Trust, Series 1 vs Vanguard Total World Stock Index Fund Admiral Class
Which is better, QQQ or VTWAX?
Large Cap Growth against Large Cap Blend.
VTWAX has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
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 | VTWAX |
|---|---|---|
| Expense Ratio | 0.18% | 0.09%Best |
| AUM | $483.5B | $12.1B |
| Dividend Yield | 0.44% | 1.52% |
| Holdings | 107 | 10,039 |
| YTD Price Return | +16.60%Best | +12.57% |
| 1Y Price Return | +22.39%Best | +16.89% |
| 3Y Price Return (annualized) | +24.26%Best | +18.20% |
| 5Y Price Return (annualized) | +13.71%Best | +8.52% |
| Volatility (annualized) | 20.9% | 15.1%Best |
| Max Drawdown | -35.6% | -28.0%Best |
| $10,000 over 5 years | $19,010Best | $15,050 |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | Feb 7, 2019 |
Not shown on this pair: Top 10 Weight.
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VTWAX. Both funds are measured the same way, so the comparison holds. QQQ yields 0.44% and VTWAX 1.52% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 11, 2026 (5 years).
QQQ vs VTWAX 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 VTWAX Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard Total World Stock Index Fund Admiral Class (VTWAX) is a mutual fund from Vanguard (US). Over the past year QQQ returned +22.39% while VTWAX returned +16.89%. Year to date, QQQ is up 16.60% versus a gain of 12.57% for VTWAX.
Over three years, QQQ compounded at +24.26% per year against +18.20% for VTWAX; over five years the annualized figures are +13.71% and +8.52% 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 15.1% for VTWAX. 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 -28.0% for VTWAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VTWAX charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.52% for VTWAX.
Structure and taxes
VTWAX 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 94.4% of QQQ's money is in holdings VTWAX also owns.
Stated as a floor: for VTWAX, our book for it covers 89.4% 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 VTWAX. Owning both mostly buys the same companies twice.
The two holdings books were reported 186 days apart, QQQ as of Aug 5, 2026 and VTWAX as of Jan 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
96 positions in common, counted across the 102 positions we hold weights for in QQQ and 9,796 in VTWAX, against full books of 107 and 10,039.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VTWAX | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 8.44% | 4.16% | 4.28% |
| AAPLApple, Inc | 7.27% | 3.51% | 3.76% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 5.76% | 2.96% | 2.80% |
| AMZNAmazon.Com Inc | 4.67% | 2.13% | 2.54% |
| GOOGAlphabet Inc | 3.13% | 1.83% | 1.30% |
| MUMicron Technology, Inc. | 4.43% | 0.43% | 4.00% |
| AVGOBroadcom Inc | 3.16% | 1.42% | 1.74% |
| AMDAdvanced Micro Devices Inc. | 3.45% | 0.35% | 3.10% |
| TSLATesla Inc | 2.56% | 1.13% | 1.43% |
| WMTWalmart, Inc. | 2.41% | 0.48% | 1.93% |
94.4% of QQQ is already inside VTWAX.
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 VTWAX?
QQQ has an expense ratio of 0.18% while VTWAX charges 0.09%. VTWAX is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, QQQ or VTWAX?
Over the past year QQQ returned +22.39% vs +16.89% for VTWAX, 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 VTWAX?
QQQ has been the more volatile fund at 20.9% annualized versus 15.1% for VTWAX. Worst drawdown: QQQ -35.6% vs VTWAX -28.0%.
Should I hold both QQQ and VTWAX?
QQQ and VTWAX have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and VTWAX?
At least 94.4% of QQQ's money is in holdings VTWAX also owns. Our book for VTWAX is partial, so the real figure is this or higher. They hold 96 positions in common, counted across the 102 positions we hold weights for in QQQ and 9,796 in VTWAX.
Which pays a higher dividend, QQQ or VTWAX?
QQQ yields 0.44% while VTWAX yields 1.52%, so VTWAX currently pays the higher dividend yield.
Is it better to hold VTWAX or QQQ in a taxable account?
QQQ is an ETF and VTWAX 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 VTWAX better than QQQ?
VTWAX has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.