QQQ vs VWOB
Invesco QQQ Trust, Series 1 vs Vanguard Emerging Markets Government Bond ETF
Quick Verdict
VWOB has a lower expense ratio. QQQ delivered stronger 1-year returns. VWOB offers more diversification with 929 holdings.
Side-by-Side Comparison
| Metric | QQQ | VWOB | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.15% | |
| AUM | $496.3B | $6.7B | |
| Dividend Yield | 0.44% | 5.93% | |
| Holdings | 108 | 929 | |
| YTD Return | +16.64% | +1.12% | |
| 1Y Return | +27.27% | +5.97% | |
| 3Y Return (annualized) | +25.96% | +9.44% | |
| 5Y Return (annualized) | +14.54% | +1.79% | |
| Volatility (annualized) | 30.6% | 8.6% | |
| Max Drawdown | -83.0% | -28.0% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | May 31, 2013 |
QQQ vs VWOB Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Emerging Markets Government Bond ETF (VWOB) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VWOB returned +5.97%. Year to date, QQQ is up 16.64% versus a gain of 1.12% for VWOB.
Over three years, QQQ compounded at +25.96% per year against +9.44% for VWOB; over five years the annualized figures are +14.54% and +1.79% respectively. Across the full 13-year window we track, QQQ has the edge at +13.03% annualized vs +0.79%. 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 8.6% for VWOB. 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 -28.0% for VWOB. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VWOB charges 0.15%. On a $10,000 position that is $18 vs $15 annually, a gap of $3 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 5.93% for VWOB.
Holdings Overlap
QQQ and VWOB share 0 holdings out of 128 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 VWOB?
QQQ has an expense ratio of 0.18% while VWOB charges 0.15%. VWOB is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, QQQ or VWOB?
Over the past year QQQ returned +27.27% vs +5.97% for VWOB, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), QQQ annualized +13.03% vs +0.79% for VWOB. Past performance does not guarantee future results.
Which is riskier, QQQ or VWOB?
QQQ has been the more volatile fund at 30.6% annualized versus 8.6% for VWOB. Worst drawdown: QQQ -83.0% vs VWOB -28.0%.
Should I hold both QQQ and VWOB?
QQQ and VWOB have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VWOB?
QQQ and VWOB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 128 unique securities.
Which pays a higher dividend, QQQ or VWOB?
QQQ yields 0.44% while VWOB yields 5.93%, so VWOB currently pays the higher dividend yield.
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