VUG vs. QQQ — ETF comparison tool (2024)

FAQs

How is VUG compared to QQQ? ›

QQQ is more expensive with a Total Expense Ratio (TER) of 0.2%, versus 0.04% for VUG. QQQ is up 18.46% year-to-date (YTD) with +$16.69B in YTD flows. VUG performs better with 23.29% YTD performance, and +$9.74B in YTD flows.

Average Return

In the past year, VOO returned a total of 24.20%, which is lower than VUG's 26.50% return. Over the past 10 years, VOO has had annualized average returns of 12.66% , compared to 14.71% for VUG. These numbers are adjusted for stock splits and include dividends.

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.

The QQQ ETF offers investors big rewards during bull markets, with the potential for long-term growth, ready liquidity, and low fees. QQQ usually declines more in bear markets, has high sector risk, often appears overvalued, and holds no small-cap stocks.

1. Nasdaq 100 ETF: A less expensive option for buy-and-hold investors. Investors looking to increase exposure to the Nasdaq-100 index in general don't have to pay the 0.2% expense ratio charged by Invesco for its QQQ Trust. Invesco offers a cheaper alternative that's completely suitable for most investors.

VUG is more expensive with a Total Expense Ratio (TER) of 0.04%, versus 0.03% for VTI. VUG is up 23.54% year-to-date (YTD) with +$8.42B in YTD flows. VTI performs worse with 17.53% YTD performance, and +$17.63B in YTD flows.

VUG is less expensive with a Total Expense Ratio (TER) of 0.04%, versus 0.1% for VGT. VUG is up 23.54% year-to-date (YTD) with +$8.42B in YTD flows. VGT performs better with 24.1% YTD performance, and +$4.44B in YTD flows.

Vanguard Growth ETF (VUG)

It's not quite as diversified as a traditional index fund, but this growth-oriented option may serve you well by focusing on long-term potential rather than just current scale.

Does Warren Buffett invest in VOO? ›

Warren Buffett's Berkshire Owns 2 ETFs: SPY and VOO

Vanguard S&P 500 ETF VOO.

QQQ is one of the more popular growth stocks, and it's a bit more stable than VUG. QQQ is another very popular ETF. Unlike VUG, which tracks a specifically growth-oriented index, QQQ tracks the Nasdaq-100 Index. This index includes the 100 largest non-financial companies listed on the Nasdaq exchange.

The Invesco QQQ Trust (QQQ) ETF, which tracks the Nasdaq-100 index (NDX), has gained about 31% year-to-date, compared to the 9.8% gain in the S&P 500 Index (SPX). At the same time, the Vanguard Information Technology ETF (VGT), a technology sector-specific ETF, has generated similar returns.

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.

Invesco offers a cheaper alternative that's completely suitable for most investors. In 2020, Invesco launched the Nasdaq 100 ETF (QQQM 0.90%). It follows the same trading rules as QQQ, but it charges just 0.15% per year instead of 0.2%.