QQQ vs. VGT — ETF comparison tool (2024)

FAQs

How does VGT compare to QQQ? ›

VGT - Performance Comparison. The year-to-date returns for both stocks are quite close, with QQQ having a 10.46% return and VGT slightly lower at 10.29%. Over the past 10 years, QQQ has underperformed VGT with an annualized return of 18.79%, while VGT has yielded a comparatively higher 20.71% annualized return.

Although VGT has a big lead for that time horizon, VUG has outperformed it over the past six months. VUG is also the year-to-date winner, with a 10.5% return compared to VGT's 8.6% return.

Pure Tech, Pure Growth

When you pit “QQQ vs VGT,” VGT's tech purity stands out. It zeroes in on the tech sector, tracking the performance of the MSCI US Investable Market Information Technology 25/50 Index.

Vanguard Information Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VGT is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market.

The inherent structure of the Vanguard Growth ETF means that it should outperform the Nasdaq Composite and S&P 500 if large-cap growth is leading the market, which is precisely what has been happening in 2023, 2024, and for most of the last five years.

Currently there's no upside potential for VGT, based on the analysts' average price target. Is VGT a Buy, Sell or Hold? VGT has a conensus rating of Moderate Buy which is based on 236 buy ratings, 74 hold ratings and 5 sell ratings.

The QQQ is more broadly diversified than the VGT, but it also comes with a higher expense ratio. So, the argument truly boils down to one of fit. If you are only going with one tech-heavy fund, the QQQ is probably the better choice because it offers a higher diversification factor.

Vanguard High Dividend Yield ETF (VYM)

The better Vanguard ETF for their needs is likely VYM, which delivers a higher 2.9% 30-day SEC yield by targeting the FTSE High Dividend Yield Index. It also charges the same expense ratio as VIG does, at 0.06%.

The QQQ ETF offers buy-and-hold investors low expenses and long-term growth potential with enough diversification to avoid the risks of betting on one company. On the downside, long-term investors in QQQ must deal with sector risk, possible overvaluation, and the absence of small caps.

The VGT ETF focuses on US Information Technology companies and has a low expense ratio compared to similar technology-focused funds. VGT offers wide exposure to US tech companies and is a preferable option than picking directly its top holdings or choosing the popular Nasdaq 100 QQQ ETF.

What is the average return for VGT? ›

Vanguard Information Technology (VGT): Historical Returns

Video Player is loading. In the last 10 Years, the Vanguard Information Technology (VGT) ETF obtained a 19.76% compound annual return, with a 19.24% standard deviation.

NYSEMKT: VGT

Tech ETFs have been top performers over the past two decades. Here's a comparison of three of the most popular funds in the category. Technology has been a dominant force in the stock market for the last two decades.

VGT Dividend Information

VGT has a dividend yield of 0.67% and paid $3.61 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 22, 2024.

While Vanguard Growth ETF has $123.57 billion in assets, Invesco QQQ has $266.83 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%. Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency.