QQQ vs VYMI
Invesco QQQ Trust, Series 1 vs Vanguard International High Dividend Yield ETF
Quick Verdict
VYMI has a lower expense ratio. VYMI delivered stronger 1-year returns. VYMI offers more diversification with 1,576 holdings.
Side-by-Side Comparison
| Metric | QQQ | VYMI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.07% | |
| AUM | $496.3B | $21.9B | |
| Dividend Yield | 0.44% | 3.47% | |
| Holdings | 108 | 1,576 | |
| YTD Return | +16.64% | +18.13% | |
| 1Y Return | +27.27% | +29.73% | |
| 3Y Return (annualized) | +25.96% | +24.71% | |
| 5Y Return (annualized) | +14.54% | +14.31% | |
| Volatility (annualized) | 30.6% | 14.9% | |
| Max Drawdown | -83.0% | -45.2% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Feb 25, 2016 |
QQQ vs VYMI Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Vanguard International High Dividend Yield ETF (VYMI) is a ETF from Vanguard (US). Over the past year QQQ returned +27.27% while VYMI returned +29.73%. Year to date, QQQ is up 16.64% versus a gain of 18.13% for VYMI.
Over three years, QQQ compounded at +25.96% per year against +24.71% for VYMI; over five years the annualized figures are +14.54% and +14.31% respectively. Across the full 11-year window we track, QQQ has the edge at +13.03% annualized vs +9.63%. 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 14.9% for VYMI. 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 -45.2% for VYMI. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VYMI charges 0.07%. On a $10,000 position that is $18 vs $7 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.47% for VYMI.
Holdings Overlap
QQQ and VYMI share 0 holdings out of 1584 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 VYMI?
QQQ has an expense ratio of 0.18% while VYMI charges 0.07%. VYMI is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, QQQ or VYMI?
Over the past year QQQ returned +27.27% vs +29.73% for VYMI, so VYMI leads on 1-year performance. Over the longest common window we track (11 years), QQQ annualized +13.03% vs +9.63% for VYMI. Past performance does not guarantee future results.
Which is riskier, QQQ or VYMI?
QQQ has been the more volatile fund at 30.6% annualized versus 14.9% for VYMI. Worst drawdown: QQQ -83.0% vs VYMI -45.2%.
Should I hold both QQQ and VYMI?
QQQ and VYMI have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VYMI?
QQQ and VYMI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1584 unique securities.
Which pays a higher dividend, QQQ or VYMI?
QQQ yields 0.44% while VYMI yields 3.47%, so VYMI currently pays the higher dividend yield.
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