QQQ vs. VGSH
QQQ (Invesco QQQ ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both exchange-traded funds - QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index, while VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, QQQ returned 21.79%/yr vs 1.73%/yr for VGSH. At a correlation of -0.12, they often move in opposite directions. QQQ charges 0.18%/yr vs 0.03%/yr for VGSH.
Performance
QQQ vs. VGSH - Performance Comparison
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Returns By Period
In the year-to-date period, QQQ achieves a 17.57% return, which is significantly higher than VGSH's 0.57% return. Over the past 10 years, QQQ has outperformed VGSH with an annualized return of 21.79%, while VGSH has yielded a comparatively lower 1.73% annualized return.
QQQ
- 1D
- 0.59%
- 1M
- 0.93%
- YTD
- 17.57%
- 6M
- 17.85%
- 1Y
- 35.82%
- 3Y*
- 26.43%
- 5Y*
- 16.85%
- 10Y*
- 21.79%
VGSH
- 1D
- -0.03%
- 1M
- 0.13%
- YTD
- 0.57%
- 6M
- 0.83%
- 1Y
- 3.31%
- 3Y*
- 4.25%
- 5Y*
- 1.83%
- 10Y*
- 1.73%
QQQ vs. VGSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
QQQ Invesco QQQ ETF | 17.57% | 20.77% | 25.58% | 54.86% | -32.58% | 27.42% | 48.62% | 38.96% | -0.13% | 32.66% |
VGSH Vanguard Short-Term Treasury ETF | 0.57% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 3.04% | 3.52% | 1.55% | 0.04% |
Correlation
The correlation between QQQ and VGSH is 0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.07 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.02 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.05 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.07 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | -0.12 |
The correlation between QQQ and VGSH shifts across timeframes, from -0.12 (all time) to 0.07 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
QQQ vs. VGSH — Risk / Return Rank
QQQ
VGSH
QQQ vs. VGSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ ETF (QQQ) and Vanguard Short-Term Treasury ETF (VGSH). 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.
| QQQ | VGSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.52 | ||
| Sortino ratioReturn per unit of downside risk | -1.57 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.55 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | 3.01 | 3.76 | -0.75 |
| Martin ratioReturn relative to average drawdown | 11.22 | 14.67 | -3.45 |
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Drawdowns
QQQ vs. VGSH - Drawdown Comparison
The maximum QQQ drawdown since its inception was -82.97%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for QQQ and VGSH.
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Drawdown Indicators
| QQQ | VGSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -82.97% | -5.70% | -77.27% |
Max Drawdown (1Y)Largest decline over 1 year | -11.96% | -0.88% | -11.08% |
Max Drawdown (3Y)Largest decline over 3 years | -22.77% | -0.97% | -21.80% |
Max Drawdown (5Y)Largest decline over 5 years | -35.12% | -5.66% | -29.46% |
Max Drawdown (10Y)Largest decline over 10 years | -35.12% | -5.70% | -29.42% |
Current DrawdownCurrent decline from peak | -3.33% | -0.21% | -3.12% |
Average DrawdownAverage peak-to-trough decline | -32.75% | -0.60% | -32.15% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.20% | 0.23% | +2.97% |
Volatility
QQQ vs. VGSH - Volatility Comparison
Invesco QQQ ETF (QQQ) has a higher volatility of 7.56% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.37%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than VGSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| QQQ | VGSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.56% | 0.37% | +7.19% |
Volatility (6M)Calculated over the trailing 6-month period | 13.81% | 0.90% | +12.91% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.19% | 1.28% | +15.91% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.55% | 1.97% | +20.58% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.38% | 1.58% | +20.80% |
QQQ vs. VGSH - Expense Ratio Comparison
QQQ has a 0.18% expense ratio, which is higher than VGSH's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
QQQ vs. VGSH - Dividend Comparison
QQQ's dividend yield for the trailing twelve months is around 0.39%, less than VGSH's 3.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QQQ Invesco QQQ ETF | 0.39% | 0.45% | 0.56% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% |
VGSH Vanguard Short-Term Treasury ETF | 3.87% | 4.00% | 4.18% | 3.31% | 1.15% | 0.66% | 1.74% | 2.28% | 1.79% | 1.10% | 0.84% | 0.69% |
Frequently Asked Questions
QQQ and VGSH have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
QQQ has higher volatility (7.56%) compared to VGSH (0.37%). In terms of maximum drawdown, QQQ dropped -82.97% vs VGSH's -5.70%.
On 10-year performance, QQQ leads with 21.79% vs 1.73% for VGSH. On fees, VGSH is cheaper at 0.03% per year. On volatility, VGSH has been the lower-risk option at 0.37%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, QQQ has performed better with a 21.79% return vs 1.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH is cheaper with a 0.03% expense ratio, compared with 0.18% for QQQ.
VGSH has the higher dividend yield at 3.87%, compared with 0.39% for QQQ.
QQQ is categorized as Nasdaq-100, while VGSH is Government Bonds. QQQ tracks NASDAQ-100 Index, while VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.18% for QQQ and 0.03% for VGSH.
VGSH currently has the higher Sharpe Ratio (2.61 vs 2.09), 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.
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