QQQ vs VTWO
Invesco QQQ Trust, Series 1 vs Vanguard Russell 2000 ETF
Which is better, QQQ or VTWO?
Large Cap Growth against Small Cap Blend.
VTWO 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 | VTWO |
|---|---|---|
| Expense Ratio | 0.18% | 0.06%Best |
| AUM | $483.5B | $17.5B |
| Dividend Yield | 0.44% | 1.10% |
| Holdings | 107 | 2,015 |
| YTD Return | +21.18%Best | +13.90% |
| 1Y Return | +24.36%Best | +16.63% |
| 3Y Return (annualized) | +27.99%Best | +18.27% |
| 5Y Return (annualized) | +15.39%Best | +6.11% |
| Volatility (annualized) | 17.2%Best | 19.1% |
| Max Drawdown | -35.1%Best | -42.4% |
| $10,000 over 5 years | $20,457Best | $13,452 |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Small Cap Blend |
| Inception | Mar 10, 1999 | Sep 20, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2010 to Sep 23, 2026 (16 years).
QQQ vs VTWO 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 16 years both funds cover.
QQQ vs VTWO Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard Russell 2000 ETF (VTWO) is an ETF from Vanguard (US). Over the past year QQQ returned +24.36% while VTWO returned +16.63%. Year to date, QQQ is up 21.18% versus a gain of 13.90% for VTWO.
Over three years, QQQ compounded at +27.99% per year against +18.27% for VTWO; over five years the annualized figures are +15.39% and +6.11% respectively. Across the full 16-year window we track, QQQ has the edge at +18.79% annualized vs +10.22%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWO has been the more volatile fund, with annualized monthly volatility of 19.1% compared with 17.2% for QQQ. 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 -35.1% for QQQ and -42.4% for VTWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VTWO 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 1.10% for VTWO.
Holdings Overlap
We hold position weights for 102 holdings in QQQ and 1,633 in VTWO, totalling 99.9% and 89.7% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 102 positions we hold weights for in QQQ and 1,633 in VTWO, against full books of 107 and 2,015.
You are not choosing between two funds in isolation.
Whichever of QQQ and VTWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or VTWO?
QQQ has an expense ratio of 0.18% while VTWO charges 0.06%. VTWO is the cheaper option, by $12 a year on a $10,000 investment.
Which performed better, QQQ or VTWO?
Over the past year QQQ returned +24.36% vs +16.63% for VTWO, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +18.79% vs +10.22% for VTWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VTWO?
VTWO has been the more volatile fund at 19.1% annualized versus 17.2% for QQQ. Worst drawdown: QQQ -35.1% vs VTWO -42.4%.
Should I hold both QQQ and VTWO?
QQQ and VTWO have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or VTWO?
QQQ yields 0.44% while VTWO yields 1.10%, so VTWO currently pays the higher dividend yield.
Is VTWO better than QQQ?
VTWO 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.