QQQ vs VUSE
Invesco QQQ Trust, Series 1 vs Vident US Equity Strategy ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VUSE offers more diversification with 127 holdings.
Side-by-Side Comparison
| Metric | QQQ | VUSE | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.50% | |
| AUM | $455.8B | $667M | |
| Dividend Yield | 0.41% | 0.45% | |
| Holdings | 108 | 128 | |
| YTD Return | +17.46% | +11.45% | |
| 1Y Return | +26.02% | +16.32% | |
| 3Y Return (annualized) | +25.51% | +15.98% | |
| 5Y Return (annualized) | +15.12% | +11.58% | |
| Volatility (annualized) | 30.6% | 17.3% | |
| Max Drawdown | -83.0% | -45.5% | |
| Fund Family | Invesco (US) | Vident Financial | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 22, 2014 |
QQQ vs VUSE Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vident US Equity Strategy ETF (VUSE) is a ETF from Vident Financial. Over the past year QQQ returned +26.02% while VUSE returned +16.32%. Year to date, QQQ is up 17.46% versus a gain of 11.45% for VUSE.
Over three years, QQQ compounded at +25.51% per year against +15.98% for VUSE; over five years the annualized figures are +15.12% and +11.58% respectively. Across the full 13-year window we track, QQQ has the edge at +13.08% annualized vs +9.40%. 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 17.3% for VUSE. 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 -45.5% for VUSE. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VUSE charges 0.50%. On a $10,000 position that is $18 vs $50 annually, a gap of $32 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.45% for VUSE.
Holdings Overlap
QQQ and VUSE share 30 holdings out of 200 unique holdings combined, representing a 33.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VUSE?
QQQ has an expense ratio of 0.18% while VUSE charges 0.50%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, QQQ or VUSE?
Over the past year QQQ returned +26.02% vs +16.32% for VUSE, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), QQQ annualized +13.08% vs +9.40% for VUSE. Past performance does not guarantee future results.
Which is riskier, QQQ or VUSE?
QQQ has been the more volatile fund at 30.6% annualized versus 17.3% for VUSE. Worst drawdown: QQQ -83.0% vs VUSE -45.5%.
Should I hold both QQQ and VUSE?
QQQ and VUSE have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VUSE?
QQQ and VUSE share 30 common holdings with a 33.9% weight overlap. Combined, they hold 200 unique securities.
Which pays a higher dividend, QQQ or VUSE?
QQQ yields 0.41% while VUSE yields 0.45%, so VUSE currently pays the higher dividend yield.
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