QQQ vs VWO
Invesco QQQ Trust, Series 1 vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VWO has a lower expense ratio. QQQ delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | QQQ | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $496.3B | $122.0B | |
| Dividend Yield | 0.44% | 2.39% | |
| Holdings | 108 | 6,334 | |
| YTD Return | +16.64% | +10.18% | |
| 1Y Return | +27.27% | +20.99% | |
| 3Y Return (annualized) | +25.96% | +18.45% | |
| 5Y Return (annualized) | +14.54% | +7.14% | |
| Volatility (annualized) | 30.6% | 20.1% | |
| Max Drawdown | -83.0% | -68.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Mar 4, 2005 |
QQQ vs VWO Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VWO returned +20.99%. Year to date, QQQ is up 16.64% versus a gain of 10.18% for VWO.
Over three years, QQQ compounded at +25.96% per year against +18.45% for VWO; over five years the annualized figures are +14.54% and +7.14% respectively. Across the full 21-year window we track, QQQ has the edge at +13.03% annualized vs +4.98%. 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 20.1% for VWO. 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 -68.3% for VWO. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VWO 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 2.39% for VWO.
Holdings Overlap
QQQ and VWO share 1 holdings out of 4085 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VWO | Difference |
|---|---|---|---|
| PDD:IE | 0.27% | 0.66% | 0.39% |
Frequently Asked Questions
Which is cheaper, QQQ or VWO?
QQQ has an expense ratio of 0.18% while VWO charges 0.06%. VWO is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or VWO?
Over the past year QQQ returned +27.27% vs +20.99% for VWO, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), QQQ annualized +13.03% vs +4.98% for VWO. Past performance does not guarantee future results.
Which is riskier, QQQ or VWO?
QQQ has been the more volatile fund at 30.6% annualized versus 20.1% for VWO. Worst drawdown: QQQ -83.0% vs VWO -68.3%.
Should I hold both QQQ and VWO?
QQQ and VWO have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VWO?
QQQ and VWO share 1 common holdings with a 0.3% weight overlap. Combined, they hold 4085 unique securities.
Which pays a higher dividend, QQQ or VWO?
QQQ yields 0.44% while VWO yields 2.39%, so VWO currently pays the higher dividend yield.
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