QQQ vs VYM
Invesco QQQ Trust, Series 1 vs Vanguard High Dividend Yield ETF
Which is better, QQQ or VYM?
Large Cap Growth against Large Cap Value.
VYM has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 46.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | VYM |
|---|---|---|
| Expense Ratio | 0.18% | 0.04%Best |
| AUM | $506.1B | $78.9B |
| Dividend Yield | 0.42% | 2.37% |
| Holdings | 321 | 608 |
| YTD Return | +17.07%Best | +15.88% |
| 1Y Return | +13.04% | +19.41%Best |
| 3Y Return (annualized) | +27.74%Best | +21.48% |
| 5Y Return (annualized) | +13.81%Best | +11.91% |
| Volatility (annualized) | 18.7% | 14.6%Best |
| Max Drawdown | -53.5%Best | -58.8% |
| $10,000 over 5 years | $19,094Best | $17,553 |
| Top 10 Weight | 46.7% | 25.8%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Mar 10, 1999 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Oct 29, 2026 (20 years).
QQQ vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 20 years both funds cover.
QQQ vs VYM Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year QQQ returned +13.04% while VYM returned +19.41%. Year to date, QQQ is up 17.07% versus a gain of 15.88% for VYM.
Over three years, QQQ compounded at +27.74% per year against +21.48% for VYM; over five years the annualized figures are +13.81% and +11.91% respectively. Across the full 20-year window we track, QQQ has the edge at +15.15% annualized vs +6.99%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -53.5% for QQQ and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.72. 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 0.42% against 2.37% for VYM.
Holdings Overlap
15.3% of QQQ's money is in holdings VYM also owns. 19.1% of VYM's money is in holdings QQQ also owns.
VYM and QQQ share little of their money.
27 positions in common, counted across the 101 positions we hold weights for in QQQ and 602 in VYM, against full books of 321 and 608.
What only one of them owns
Our book lists 548 positions for VYM that do not appear in our book for QQQ (79.2% of the fund), and 67 for QQQ that do not appear in VYM (81.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 2.53% | 6.94% | 4.41% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.77% | 1.76% | 0.01% |
| TXNTexas Instrument Inc | 1.07% | 0.96% | 0.11% |
| LINLinde Plc Ordinary Shares | 0.91% | 0.91% | 0.00% |
| AMGNAmgen Inc. | 0.95% | 0.86% | 0.09% |
| QCOMQualcomm Inc. | 0.81% | 0.72% | 0.09% |
| ADIAnalog Devices, Inc. | 0.80% | 0.71% | 0.09% |
| GILDGilead Sciences Inc | 0.77% | 0.73% | 0.04% |
| PEPPepsico Inc. | 0.72% | 0.77% | 0.05% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.73% | 0.35% | 0.38% |
You are not choosing between two funds in isolation.
Whichever of QQQ and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $14 a year on a $10,000 investment.
Which performed better, QQQ or VYM?
Over the past year QQQ returned +13.04% vs +19.41% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +15.15% vs +6.99% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VYM?
QQQ has been the more volatile fund at 18.7% annualized versus 14.6% for VYM. Worst drawdown: QQQ -53.5% vs VYM -58.8%.
Should I hold both QQQ and VYM?
QQQ and VYM have a monthly-return correlation of 0.72, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and VYM?
19.1% of VYM's money is in holdings QQQ also owns. 19.1% of VYM's is in holdings QQQ also owns. They hold 27 positions in common, counted across the 101 positions we hold weights for in QQQ and 602 in VYM.
Which pays a higher dividend, QQQ or VYM?
QQQ yields 0.42% while VYM yields 2.37%, so VYM currently pays the higher dividend yield.
Is VYM better than QQQ?
VYM has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.