MGC vs. QQQ

Last updated Jun 23, 2026

MGC (Vanguard Mega Cap ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - MGC is a Large Cap Blend Equities fund tracking the CRSP US Mega Cap Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, MGC returned 16.51%/yr vs 22.48%/yr for QQQ. Their correlation of 0.91 suggests significant overlap in exposure. MGC charges 0.05%/yr vs 0.18%/yr for QQQ.

Performance

MGC vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mega Cap ETF (MGC) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MGC achieves a 9.05% return, which is significantly lower than QQQ's 20.41% return. Over the past 10 years, MGC has underperformed QQQ with an annualized return of 16.51%, while QQQ has yielded a comparatively higher 22.48% annualized return.

MGC

• 1D: -0.63%
• 1M: -0.40%
• YTD: 9.05%
• 6M: 8.78%
• 1Y: 27.57%
• 3Y*: 22.54%
• 5Y*: 14.13%
• 10Y*: 16.51%

QQQ

• 1D: -0.25%
• 1M: 2.96%
• YTD: 20.41%
• 6M: 19.46%
• 1Y: 40.91%
• 3Y*: 27.47%
• 5Y*: 16.94%
• 10Y*: 22.48%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MGC vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MGC Vanguard Mega Cap ETF	9.05%	19.31%	27.16%	29.77%	-19.95%	27.58%	21.57%	31.14%	-3.45%	22.61%
QQQ Invesco QQQ ETF	20.41%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between MGC and QQQ is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Dec 27, 2007	0.91

The correlation between MGC and QQQ has been stable across timeframes, ranging from 0.91 to 0.96 - a consistent structural relationship.

MGC vs. QQQ - Sectors Allocation Comparison

Sectors	MGC	QQQ
Technology	42.9%	58.7%
Communication Services	12.3%	14.3%
Financial Services	10.9%	0.2%
Consumer Cyclical	9.8%	11.4%
Healthcare	8.6%	3.7%
Industrials	6.0%	2.6%
Consumer Defensive	4.4%	6.4%
Energy	2.3%	0.5%
Basic Materials	1.1%	1.0%
Real Estate	0.9%	0.1%
Utilities	0.9%	1.2%

Return for Risk

MGC vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MGC

MGC Risk / Return Rank: 65
MGC Sharpe Ratio Rank: 68
MGC Sortino Ratio Rank: 65
MGC Omega Ratio Rank: 66
MGC Calmar Ratio Rank: 58
MGC Martin Ratio Rank: 68

QQQ

QQQ Risk / Return Rank: 72
QQQ Sharpe Ratio Rank: 76
QQQ Sortino Ratio Rank: 70
QQQ Omega Ratio Rank: 72
QQQ Calmar Ratio Rank: 70
QQQ Martin Ratio Rank: 71

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MGC vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mega Cap ETF (MGC) and Invesco QQQ ETF (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MGC	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.13	2.33	-0.20
Sortino ratio: Return per unit of downside risk	2.88	3.03	-0.15
Omega ratio: Gain probability vs. loss probability	1.38	1.41	-0.03
Calmar ratio: Return relative to maximum drawdown	2.81	3.44	-0.62
Martin ratio: Return relative to average drawdown	12.20	12.79	-0.59

MGC vs. QQQ - Sharpe Ratio Comparison

The current MGC Sharpe Ratio is 2.13, which is comparable to the QQQ Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of MGC and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MGC vs. QQQ - Drawdown Comparison

The maximum MGC drawdown since its inception was -52.26%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for MGC and QQQ.

Drawdown Indicators

	MGC	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-52.26%	-82.97%	+30.71%
Max Drawdown (1Y) Largest decline over 1 year	-9.85%	-11.96%	+2.11%
Max Drawdown (3Y) Largest decline over 3 years	-19.28%	-22.77%	+3.49%
Max Drawdown (5Y) Largest decline over 5 years	-25.74%	-35.12%	+9.38%
Max Drawdown (10Y) Largest decline over 10 years	-33.07%	-35.12%	+2.05%
Current Drawdown Current decline from peak	-2.36%	-0.99%	-1.37%
Average Drawdown Average peak-to-trough decline	-7.17%	-32.73%	+25.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.27%	3.21%	-0.94%

Volatility

MGC vs. QQQ - Volatility Comparison

The current volatility for Vanguard Mega Cap ETF (MGC) is 5.00%, while Invesco QQQ ETF (QQQ) has a volatility of 8.47%. This indicates that MGC experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MGC	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.00%	8.47%	-3.47%
Volatility (6M) Calculated over the trailing 6-month period	10.23%	14.20%	-3.97%
Volatility (1Y) Calculated over the trailing 1-year period	13.01%	17.67%	-4.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.37%	22.64%	-5.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.27%	22.43%	-4.16%

MGC vs. QQQ - Expense Ratio Comparison

MGC has a 0.05% expense ratio, which is lower than QQQ's 0.18% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

MGC vs. QQQ - Dividend Comparison

MGC's dividend yield for the trailing twelve months is around 0.88%, more than QQQ's 0.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGC Vanguard Mega Cap ETF	0.88%	0.93%	1.15%	1.35%	1.65%	1.17%	1.45%	1.81%	2.10%	1.83%	2.14%	2.11%
QQQ Invesco QQQ ETF	0.41%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both MGC and QQQ in my portfolio?

With a correlation of 0.95, MGC and QQQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, MGC or QQQ?

QQQ has higher volatility (8.47%) compared to MGC (5.00%). In terms of maximum drawdown, MGC dropped -52.26% vs QQQ's -82.97%.

Which ETF is better, MGC or QQQ?

On 10-year performance, QQQ leads with 22.48% vs 16.51% for MGC. On fees, MGC is cheaper at 0.05% per year. On volatility, MGC has been the lower-risk option at 5.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MGC or QQQ?

Over the 10-year period, QQQ has performed better with a 22.48% return vs 16.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MGC or QQQ?

MGC is cheaper with a 0.05% expense ratio, compared with 0.18% for QQQ.

Which ETF pays a higher dividend yield, MGC or QQQ?

MGC has the higher dividend yield at 0.88%, compared with 0.49% for QQQ.

What is the main difference between MGC and QQQ?

MGC is categorized as Large Cap Blend Equities, while QQQ is Nasdaq-100. MGC tracks CRSP US Mega Cap Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.05% for MGC and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.33 vs 2.13), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.