QQQJ vs VYM

QQQJ vs VYM
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Quick Verdict

VYM has a lower expense ratio. QQQJ delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: QQQJMore Diversified: VYM

Side-by-Side Comparison

MetricQQQJVYMWinner
Expense Ratio0.15%0.04%
AUM$1.2B$81.6B
Dividend Yield0.56%2.24%
Holdings107616
YTD Return+22.83%+15.34%
1Y Return+36.03%+23.24%
3Y Return (annualized)+22.77%+19.22%
5Y Return (annualized)+7.25%+12.21%
Volatility (annualized)19.6%14.6%
Max Drawdown-39.6%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionOct 13, 2020Nov 10, 2006

QQQJ vs VYM Performance

Invesco NASDAQ Next Gen 100 ETF (QQQJ) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year QQQJ returned +36.03% while VYM returned +23.24%. Year to date, QQQJ is up 22.83% versus a gain of 15.34% for VYM.

Over three years, QQQJ compounded at +22.77% per year against +19.22% for VYM; over five years the annualized figures are +7.25% and +12.21% respectively. Across the full 6-year window we track, QQQJ has the edge at +10.47% annualized vs +7.04%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQJ has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -39.6% for QQQJ 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

QQQJ charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQJ currently yields 0.56% against 2.24% for VYM.

Holdings Overlap

1.4%overlap

QQQJ and VYM share 16 holdings out of 692 unique holdings combined, representing a 1.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QQQJWeight in VYMDifference
EBAY2.43%0.21%2.22%
KMB1.82%0.15%1.67%
NTAP1.51%0.13%1.38%
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Frequently Asked Questions

Which is cheaper, QQQJ or VYM?

QQQJ has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, QQQJ or VYM?

Over the past year QQQJ returned +36.03% vs +23.24% for VYM, so QQQJ leads on 1-year performance. Over the longest common window we track (6 years), QQQJ annualized +10.47% vs +7.04% for VYM. Past performance does not guarantee future results.

Which is riskier, QQQJ or VYM?

QQQJ has been the more volatile fund at 19.6% annualized versus 14.6% for VYM. Worst drawdown: QQQJ -39.6% vs VYM -58.8%.

Should I hold both QQQJ and VYM?

QQQJ 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 QQQJ and VYM?

QQQJ and VYM share 16 common holdings with a 1.4% weight overlap. Combined, they hold 692 unique securities.

Which pays a higher dividend, QQQJ or VYM?

QQQJ yields 0.56% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.

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