QQQ vs VYM
Invesco QQQ Trust, Series 1 vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. QQQ delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | QQQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.04% | |
| AUM | $496.3B | $81.6B | |
| Dividend Yield | 0.44% | 2.24% | |
| Holdings | 108 | 616 | |
| YTD Return | +16.64% | +15.34% | |
| 1Y Return | +27.27% | +23.24% | |
| 3Y Return (annualized) | +25.96% | +19.22% | |
| 5Y Return (annualized) | +14.54% | +12.21% | |
| Volatility (annualized) | 30.6% | 14.6% | |
| Max Drawdown | -83.0% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Nov 10, 2006 |
QQQ vs VYM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VYM returned +23.24%. Year to date, QQQ is up 16.64% versus a gain of 15.34% for VYM.
Over three years, QQQ compounded at +25.96% per year against +19.22% for VYM; over five years the annualized figures are +14.54% and +12.21% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs +7.04%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VYM charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 2.24% for VYM.
Holdings Overlap
QQQ and VYM share 28 holdings out of 677 unique holdings combined, representing a 15.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VYM?
QQQ has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, QQQ or VYM?
Over the past year QQQ returned +27.27% vs +23.24% for VYM, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.03% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, QQQ or VYM?
QQQ has been the more volatile fund at 30.6% annualized versus 14.6% for VYM. Worst drawdown: QQQ -83.0% vs VYM -58.8%.
Should I hold both QQQ and VYM?
QQQ and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VYM?
QQQ and VYM share 28 common holdings with a 15.7% weight overlap. Combined, they hold 677 unique securities.
Which pays a higher dividend, QQQ or VYM?
QQQ yields 0.44% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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