QQQ vs. VGT
Compare and contrast key facts about Invesco QQQ (QQQ) and Vanguard Information Technology ETF (VGT).
QQQ and VGT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004. Both QQQ and VGT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: QQQ or VGT.
Key characteristics
| QQQ | VGT | |
|---|---|---|
| YTD Return | 47.08% | 46.31% |
| 1Y Return | 33.66% | 34.18% |
| 3Y Return (Ann) | 9.39% | 12.07% |
| 5Y Return (Ann) | 19.00% | 21.74% |
| 10Y Return (Ann) | 17.47% | 19.75% |
| Sharpe Ratio | 1.80 | 1.73 |
| Daily Std Dev | 18.82% | 20.01% |
| Max Drawdown | -82.98% | -54.63% |
Correlation
The correlation between QQQ and VGT is 0.95, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
QQQ vs. VGT - Performance Comparison
The year-to-date returns for both stocks are quite close, with QQQ having a 47.08% return and VGT slightly lower at 46.31%. Over the past 10 years, QQQ has underperformed VGT with an annualized return of 17.47%, while VGT has yielded a comparatively higher 19.75% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Compare stocks, funds, or ETFs
QQQ vs. VGT - Dividend Comparison
QQQ's dividend yield for the trailing twelve months is around 0.56%, less than VGT's 0.69% yield.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QQQ Invesco QQQ | 0.56% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% | 1.26% |
VGT Vanguard Information Technology ETF | 0.69% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% | 1.21% |
QQQ vs. VGT - Expense Ratio Comparison
QQQ vs. VGT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ (QQQ) and Vanguard Information Technology ETF (VGT). 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.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
|---|---|---|---|---|---|
QQQ Invesco QQQ | 1.80 | ||||
VGT Vanguard Information Technology ETF | 1.73 |
QQQ vs. VGT - Drawdown Comparison
The maximum QQQ drawdown for the period was -13.83%, roughly equal to the maximum VGT drawdown of -13.05%. The drawdown chart below compares losses from any high point along the way for QQQ and VGT
QQQ vs. VGT - Volatility Comparison
The current volatility for Invesco QQQ (QQQ) is 3.69%, while Vanguard Information Technology ETF (VGT) has a volatility of 4.16%. This indicates that QQQ experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.