TQQQ vs VYM

TQQQ vs VYM

Which is better, TQQQ or VYM?

Multi Alternative against Large Cap Value.

VYM has a lower expense ratio. TQQQ led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VYMHigher Returns: TQQQ

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

MetricTQQQVYM
Expense Ratio0.82%0.04%Best
AUM$36.1B$81.6B
Dividend Yield0.58%2.24%
Holdings128613
YTD Return+38.79%Best+14.82%
1Y Return+59.18%Best+20.84%
3Y Return (annualized)+52.33%Best+18.64%
5Y Return (annualized)+14.87%Best+12.28%
Volatility (annualized)55.1%13.2%Best
Max Drawdown-81.7%-35.7%Best
$10,000 over 5 years$20,000Best$17,845
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
StyleMulti AlternativeLarge Cap Value
InceptionFeb 9, 2010Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Feb 11, 2010 to Sep 4, 2026 (16.6 years).

TQQQ 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

TQQQ vs VYM Performance

ProShares UltraPro QQQ (TQQQ) is an ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TQQQ returned +59.18% while VYM returned +20.84%. Year to date, TQQQ is up 38.79% versus a gain of 14.82% for VYM.

Over three years, TQQQ compounded at +52.33% per year against +18.64% for VYM; over five years the annualized figures are +14.87% and +12.28% respectively. Across the full 17-year window we track, TQQQ has the edge at +42.48% annualized vs +10.48%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TQQQ has been the more volatile fund, with annualized monthly volatility of 55.1% compared with 13.2% 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 -81.7% for TQQQ and -35.7% 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

TQQQ charges 0.82% per year while VYM charges 0.04%. On a $10,000 position that is $82 vs $4 annually, a gap of $78 per year that compounds over a long holding period. On income, TQQQ currently yields 0.58% against 2.24% for VYM.

Holdings Overlap

VYM already in TQQQ19.1%

At least 19.1% of VYM's money is in holdings TQQQ also owns.

Stated as a floor: for TQQQ, our book for it covers 52.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

VYM and TQQQ share little of their money.

26 positions in common, counted across the 101 positions we hold weights for in TQQQ and 603 in VYM, against full books of 128 and 613.

Top Shared Holdings

StockWeight in TQQQWeight in VYMDifference
AVGOBroadcom Inc1.18%7.29%6.11%
CSCOCisco Systems Inc. - Ordinary Shares0.79%1.93%1.14%
TXNTexas Instrument Inc0.42%1.13%0.71%
LINLinde Plc Ordinary Shares0.37%0.99%0.62%
AMGNAmgen Inc.0.36%0.75%0.39%
ADIAnalog Devices, Inc.0.30%0.80%0.50%
QCOMQualcomm Inc.0.27%0.81%0.54%
GILDGilead Sciences Inc0.27%0.65%0.38%
SBUXStarbucks Corp0.20%0.48%0.28%
TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#5855580.31%0.34%0.03%

You are not choosing between two funds in isolation.

Whichever of TQQQ and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

TQQQVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, TQQQ or VYM?

TQQQ has an expense ratio of 0.82% while VYM charges 0.04%. VYM is the cheaper option, by $78 a year on a $10,000 investment.

Which performed better, TQQQ or VYM?

Over the past year TQQQ returned +59.18% vs +20.84% for VYM, so TQQQ leads on 1-year performance. Over the longest common window we track (17 years), TQQQ annualized +42.48% vs +10.48% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, TQQQ or VYM?

TQQQ has been the more volatile fund at 55.1% annualized versus 13.2% for VYM. Worst drawdown: TQQQ -81.7% vs VYM -35.7%.

Should I hold both TQQQ and VYM?

TQQQ and VYM have a monthly-return correlation of 0.71, 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 TQQQ and VYM?

At least 19.1% of VYM's money is in holdings TQQQ also owns. Our book for TQQQ is partial, so the real figure is this or higher. They hold 26 positions in common, counted across the 101 positions we hold weights for in TQQQ and 603 in VYM.

Which pays a higher dividend, TQQQ or VYM?

TQQQ yields 0.58% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.

Is VYM better than TQQQ?

VYM has a lower expense ratio. TQQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.