TQQQ vs VOO
ProShares UltraPro QQQ vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. TQQQ delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | TQQQ | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.82% | 0.03% | |
| AUM | $38.9B | $997.4B | |
| Dividend Yield | 0.58% | 1.08% | |
| Holdings | 128 | 509 | |
| YTD Return | +36.49% | +12.68% | |
| 1Y Return | +65.64% | +21.87% | |
| 3Y Return (annualized) | +57.14% | +22.06% | |
| 5Y Return (annualized) | +16.08% | +12.95% | |
| Volatility (annualized) | 55.2% | 14.1% | |
| Max Drawdown | -81.7% | -34.3% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 9, 2010 | Sep 7, 2010 |
TQQQ vs VOO Performance
ProShares UltraPro QQQ (TQQQ) is a ETF from ProShares and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TQQQ returned +65.64% while VOO returned +21.87%. Year to date, TQQQ is up 36.49% versus a gain of 12.68% for VOO.
Over three years, TQQQ compounded at +57.14% per year against +22.06% for VOO; over five years the annualized figures are +16.08% and +12.95% respectively. Across the full 16-year window we track, TQQQ has the edge at +42.46% annualized vs +13.47%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TQQQ has been the more volatile fund, with annualized monthly volatility of 55.2% compared with 14.1% for VOO. 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 -81.7% for TQQQ and -34.3% for VOO. 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
TQQQ charges 0.82% per year while VOO charges 0.03%. On a $10,000 position that is $82 vs $3 annually, a gap of $79 per year that compounds over a long holding period. On income, TQQQ currently yields 0.58% against 1.08% for VOO.
Holdings Overlap
TQQQ and VOO share 88 holdings out of 521 unique holdings combined, representing a 29.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TQQQ or VOO?
TQQQ has an expense ratio of 0.82% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $79 per year of difference.
Which performed better, TQQQ or VOO?
Over the past year TQQQ returned +65.64% vs +21.87% for VOO, so TQQQ leads on 1-year performance. Over the longest common window we track (16 years), TQQQ annualized +42.46% vs +13.47% for VOO. Past performance does not guarantee future results.
Which is riskier, TQQQ or VOO?
TQQQ has been the more volatile fund at 55.2% annualized versus 14.1% for VOO. Worst drawdown: TQQQ -81.7% vs VOO -34.3%.
Should I hold both TQQQ and VOO?
TQQQ and VOO have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between TQQQ and VOO?
TQQQ and VOO share 88 common holdings with a 29.2% weight overlap. Combined, they hold 521 unique securities.
Which pays a higher dividend, TQQQ or VOO?
TQQQ yields 0.58% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
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