QQQ vs VTWG
Invesco QQQ Trust, Series 1 vs Vanguard Russell 2000 Growth ETF
Quick Verdict
VTWG has a lower expense ratio. VTWG delivered stronger 1-year returns. VTWG offers more diversification with 1,125 holdings.
Side-by-Side Comparison
| Metric | QQQ | VTWG | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $496.3B | $1.7B | |
| Dividend Yield | 0.44% | 0.61% | |
| Holdings | 108 | 1,125 | |
| YTD Return | +16.64% | +18.69% | |
| 1Y Return | +27.27% | +31.27% | |
| 3Y Return (annualized) | +25.96% | +19.21% | |
| 5Y Return (annualized) | +14.54% | +6.33% | |
| Volatility (annualized) | 30.6% | 20.0% | |
| Max Drawdown | -83.0% | -42.1% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Sep 20, 2010 |
QQQ vs VTWG Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Russell 2000 Growth ETF (VTWG) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VTWG returned +31.27%. Year to date, QQQ is up 16.64% versus a gain of 18.69% for VTWG.
Over three years, QQQ compounded at +25.96% per year against +19.21% for VTWG; over five years the annualized figures are +14.54% and +6.33% respectively. Across the full 16-year window we track, QQQ has the edge at +13.03% annualized vs +11.47%. 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 20.0% for VTWG. 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 -42.1% for VTWG. 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VTWG charges 0.06%. On a $10,000 position that is $18 vs $6 annually, a gap of $12 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.61% for VTWG.
Holdings Overlap
QQQ and VTWG share 1 holdings out of 1225 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VTWG | Difference |
|---|---|---|---|
| FTNT | 0.53% | 0.14% | 0.39% |
Frequently Asked Questions
Which is cheaper, QQQ or VTWG?
QQQ has an expense ratio of 0.18% while VTWG charges 0.06%. VTWG is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or VTWG?
Over the past year QQQ returned +27.27% vs +31.27% for VTWG, so VTWG leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +13.03% vs +11.47% for VTWG. Past performance does not guarantee future results.
Which is riskier, QQQ or VTWG?
QQQ has been the more volatile fund at 30.6% annualized versus 20.0% for VTWG. Worst drawdown: QQQ -83.0% vs VTWG -42.1%.
Should I hold both QQQ and VTWG?
QQQ and VTWG have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VTWG?
QQQ and VTWG share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1225 unique securities.
Which pays a higher dividend, QQQ or VTWG?
QQQ yields 0.44% while VTWG yields 0.61%, so VTWG currently pays the higher dividend yield.
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