QQQ vs VXF
Invesco QQQ Trust, Series 1 vs Vanguard Extended Market ETF
Quick Verdict
VXF has a lower expense ratio. QQQ delivered stronger 1-year returns. VXF offers more diversification with 3,376 holdings.
Side-by-Side Comparison
| Metric | QQQ | VXF | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $496.3B | $30.5B | |
| Dividend Yield | 0.44% | 1.03% | |
| Holdings | 108 | 3,376 | |
| YTD Return | +16.64% | +16.66% | |
| 1Y Return | +27.27% | +24.93% | |
| 3Y Return (annualized) | +25.96% | +20.39% | |
| 5Y Return (annualized) | +14.54% | +7.03% | |
| Volatility (annualized) | 30.6% | 18.7% | |
| Max Drawdown | -83.0% | -59.4% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 27, 2001 |
QQQ vs VXF Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VXF returned +24.93%. Year to date, QQQ is up 16.64% versus a gain of 16.66% for VXF.
Over three years, QQQ compounded at +25.96% per year against +20.39% for VXF; over five years the annualized figures are +14.54% and +7.03% respectively. Across the full 25-year window we track, QQQ has the edge at +13.03% annualized vs +9.04%. 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 18.7% for VXF. 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 -59.4% for VXF. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VXF charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.03% for VXF.
Holdings Overlap
QQQ and VXF share 6 holdings out of 3390 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VXF?
QQQ has an expense ratio of 0.18% while VXF charges 0.05%. VXF is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, QQQ or VXF?
Over the past year QQQ returned +27.27% vs +24.93% for VXF, so QQQ leads on 1-year performance. Over the longest common window we track (25 years), QQQ annualized +13.03% vs +9.04% for VXF. Past performance does not guarantee future results.
Which is riskier, QQQ or VXF?
QQQ has been the more volatile fund at 30.6% annualized versus 18.7% for VXF. Worst drawdown: QQQ -83.0% vs VXF -59.4%.
Should I hold both QQQ and VXF?
QQQ and VXF have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VXF?
QQQ and VXF share 6 common holdings with a 0.9% weight overlap. Combined, they hold 3390 unique securities.
Which pays a higher dividend, QQQ or VXF?
QQQ yields 0.44% while VXF yields 1.03%, so VXF currently pays the higher dividend yield.
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