QQQ vs VUSB
Invesco QQQ Trust, Series 1 vs Vanguard Ultra Short Bond ETF
Quick Verdict
VUSB has a lower expense ratio. QQQ delivered stronger 1-year returns. VUSB offers more diversification with 153 holdings.
Side-by-Side Comparison
| Metric | QQQ | VUSB | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.10% | |
| AUM | $455.8B | $8.9B | |
| Dividend Yield | 0.41% | 4.38% | |
| Holdings | 108 | 1,262 | |
| YTD Return | +18.31% | -0.34% | |
| 1Y Return | +25.37% | +1.58% | |
| 3Y Return (annualized) | +25.79% | +4.46% | |
| 5Y Return (annualized) | +15.20% | +3.06% | |
| Volatility (annualized) | 30.6% | 1.2% | |
| Max Drawdown | -83.0% | -1.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Apr 5, 2021 |
QQQ vs VUSB Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Ultra Short Bond ETF (VUSB) is a ETF from Vanguard (US). Over the past year QQQ returned +25.37% while VUSB returned +1.58%. Year to date, QQQ is up 18.31% versus a loss of 0.34% for VUSB.
Over three years, QQQ compounded at +25.79% per year against +4.46% for VUSB; over five years the annualized figures are +15.20% and +3.06% respectively. Across the full 5-year window we track, QQQ has the edge at +13.10% annualized vs +2.89%. 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 1.2% for VUSB. 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 -1.8% for VUSB. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VUSB charges 0.10%. On a $10,000 position that is $18 vs $10 annually, a gap of $8 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.38% for VUSB.
Holdings Overlap
QQQ and VUSB share 0 holdings out of 256 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VUSB?
QQQ has an expense ratio of 0.18% while VUSB charges 0.10%. VUSB is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, QQQ or VUSB?
Over the past year QQQ returned +25.37% vs +1.58% for VUSB, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.10% vs +2.89% for VUSB. Past performance does not guarantee future results.
Which is riskier, QQQ or VUSB?
QQQ has been the more volatile fund at 30.6% annualized versus 1.2% for VUSB. Worst drawdown: QQQ -83.0% vs VUSB -1.8%.
Should I hold both QQQ and VUSB?
QQQ and VUSB have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VUSB?
QQQ and VUSB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 256 unique securities.
Which pays a higher dividend, QQQ or VUSB?
QQQ yields 0.41% while VUSB yields 4.38%, so VUSB currently pays the higher dividend yield.
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