VUG vs. QQQ — ETF comparison tool (2024)

FAQs

VUG vs. QQQ — ETF comparison tool? ›

QQQ - Performance Comparison. In the year-to-date period, VUG achieves a 13.05% return, which is significantly higher than QQQ's 10.41% return. Over the past 10 years, VUG has underperformed QQQ with an annualized return of 14.90%, while QQQ has yielded a comparatively higher 18.35% annualized return.

Vanguard Information Technology ETF (VGT) has a higher volatility of 5.07% compared to Invesco QQQ (QQQ) at 3.95%. This indicates that VGT's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Invesco Nasdaq 100 ETF

It's simply a cheaper version of the QQQ. At 0.15% annually, it costs 5 basis points less than its sister fund (a basis point is one one-hundredth of a percentage point). So … why not just make QQQ cheaper?

Alternative: Invesco Nasdaq 100 ETF (QQQM)

QQQM is the lower cost version of QQQ, coming in with an expense ratio of 0.15% versus 0.20% for QQQ.

SPYG and VUG have the same expense ratio, meaning it's equally as costly to invest in either one. SPYG targets investing in US Equities, while VUG targets investing in US Equities. SPYG is managed by State Street (SPDR), while VUG is managed by Vanguard. Both SPYG and VUG are considered high-volume assets.

QQQ - Performance Comparison. In the year-to-date period, VUG achieves a 13.71% return, which is significantly higher than QQQ's 10.93% return. Over the past 10 years, VUG has underperformed QQQ with an annualized return of 15.12%, while QQQ has yielded a comparatively higher 18.58% annualized return.

For investors seeking an alternative to QQQ's mega-cap exposure, the Invesco S&P 500 Top 50 ETF (XLG) is an excellent option. XLG tracks the S&P 500 Top 50 Index, which, like QQQ, is heavily weighted towards top-tier tech and consumer stocks.

XLK has outperformed QQQ on a three-year basis, with a three-year annualized return of 13.4%. It has also beaten QQQ over the past five years, with an annualized return of 19.6%. Even over the past 10 years, it edges QQQ out with an excellent 20.5% annualized return.

Bloomberg recently reported that only one equity mutual fund, the Baron Partners Fund, has outperformed QQQ over the past 5, 10, and 15 years, mainly due to its outsized exposure to Tesla.

QQQ has a higher expense ratio than QQQM by 0.05%. This can indicate that it's more expensive to invest in QQQ than QQQM. QQQ targets investing in US Equities, while QQQM targets investing in US Equities. QQQ is managed by Invesco, while QQQM is managed by Invesco.

Does fidelity have a QQQ equivalent? ›

QQQ is managed by Invesco, while ONEQ is managed by Fidelity. Both QQQ and ONEQ are considered high-volume assets.

Invesco QQQ Competition. Etfs USA . Invesco QQQ Trust competes with Sterling Capital, Northern Lights, First Trust, HUMANA, and Barloworld; as well as few others.

QQQM will provide identical exposure as QQQ at a lower fee, owning Amazon.com, Apple, Microsoft and other large-cap growth stocks. Invesco QQQ Trust's (QQQ) asset growth has accelerated in the last few years.

Average Return

In the past year, VOO returned a total of 26.36%, which is significantly lower than VUG's 32.44% return. Over the past 10 years, VOO has had annualized average returns of 12.56% , compared to 14.88% for VUG. These numbers are adjusted for stock splits and include dividends.

FSPGX - Fidelity ® Large Cap Growth Index Fund.

If you are looking for broad, diversified exposure to the U.S. stock market, VTI may be the better option for you. However, if you are more inclined towards large-cap growth stocks and are willing to take on a bit more risk for potentially higher returns, VUG could be the more suitable choice.

VOO tracks the performance of S&P 500, while QQQ tracks the performance of the Nasdaq 100. There are some key differences that you need to recognize when investing in these two ETFs. Next is diversification. While both ETFs are well diversified, VOO is less concentrated in both industry and top 10 holdings.

VYM provides investors with a consistent stream of dividend income from high-quality companies, while QQQ offers exposure to innovative technology and growth-oriented stocks.

VGT - Performance Comparison. In the year-to-date period, QQQ achieves a 11.60% return, which is significantly lower than VGT's 13.49% return. Over the past 10 years, QQQ has underperformed VGT with an annualized return of 18.47%, while VGT has yielded a comparatively higher 20.66% annualized return.

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) and Meta Platforms (NASDAQ: META) make up a staggering 45% of the Vanguard Communication Services ETF. But it wasn't always this way. ETFs rebalance their weightings to adjust for changes in market capitalization.