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QQQ vs. VTWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

QQQ vs. VTWO

Last updated Jun 16, 2026

QQQ (Invesco QQQ ETF) and VTWO (Vanguard Russell 2000 ETF) are both exchange-traded funds - QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index, while VTWO is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, QQQ returned 22.31%/yr vs 11.54%/yr for VTWO. A 0.73 correlation means they provide meaningful diversification when combined. QQQ charges 0.18%/yr vs 0.06%/yr for VTWO.

Performance

QQQ vs. VTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco QQQ ETF (QQQ) and Vanguard Russell 2000 ETF (VTWO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

The year-to-date returns for both stocks are quite close, with QQQ having a 21.26% return and VTWO slightly lower at 20.23%. Over the past 10 years, QQQ has outperformed VTWO with an annualized return of 22.31%, while VTWO has yielded a comparatively lower 11.54% annualized return.

QQQ

1D
3.14%
1M
4.95%
YTD
21.26%
6M
22.17%
1Y
41.87%
3Y*
27.20%
5Y*
17.59%
10Y*
22.31%

VTWO

1D
0.81%
1M
6.35%
YTD
20.23%
6M
17.96%
1Y
43.20%
3Y*
18.23%
5Y*
6.57%
10Y*
11.54%
*Multi-year figures are annualized to reflect compound growth (CAGR)

QQQ vs. VTWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
QQQ
Invesco QQQ ETF		21.26%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%32.66%
VTWO
Vanguard Russell 2000 ETF		20.23%12.90%11.55%17.08%-20.49%14.79%20.22%25.81%-11.15%14.69%

Correlation

The correlation between QQQ and VTWO is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.69

Correlation (3Y)
Calculated over the trailing 3-year period

0.65

Correlation (5Y)
Calculated over the trailing 5-year period

0.72

Correlation (10Y)
Calculated over the trailing 10-year period

0.69

Correlation (All Time)
Calculated using the full available price history since Sep 22, 2010

0.73

The correlation between QQQ and VTWO has been stable across timeframes, ranging from 0.65 to 0.73 - a consistent structural relationship.

QQQ vs. VTWO - Sectors Allocation Comparison

Sectors
QQQ
VTWO

Technology

58.7%
17.0%

Communication Services

14.3%
2.4%

Consumer Cyclical

11.4%
8.4%

Consumer Defensive

6.4%
2.4%

Healthcare

3.7%
16.5%

Industrials

2.6%
17.7%

Utilities

1.2%
2.9%

Basic Materials

1.0%
4.8%

Energy

0.5%
6.1%

Financial Services

0.2%
15.7%

Real Estate

0.1%
6.1%

Technology

QQQ
58.7%
VTWO
17.0%

Communication Services

QQQ
14.3%
VTWO
2.4%

Consumer Cyclical

QQQ
11.4%
VTWO
8.4%

Consumer Defensive

QQQ
6.4%
VTWO
2.4%

Healthcare

QQQ
3.7%
VTWO
16.5%

Industrials

QQQ
2.6%
VTWO
17.7%

Utilities

QQQ
1.2%
VTWO
2.9%

Basic Materials

QQQ
1.0%
VTWO
4.8%

Energy

QQQ
0.5%
VTWO
6.1%

Financial Services

QQQ
0.2%
VTWO
15.7%

Real Estate

QQQ
0.1%
VTWO
6.1%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Invesco QQQ ETF

Vanguard Russell 2000 ETF

Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. QQQI
Often compared with VTWO:
VTWO vs. IWMVTWO vs. VBVTWO vs. VOOVTWO vs. VTWVVTWO vs. VTWGVTWO vs. FSSNXVTWO vs. VIOO

Return for Risk

QQQ vs. VTWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
QQQ
QQQ Risk / Return Rank: 7979
Overall Rank
QQQ Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 7979
Sortino Ratio Rank
QQQ Omega Ratio Rank: 8181
Omega Ratio Rank
QQQ Calmar Ratio Rank: 7676
Calmar Ratio Rank
QQQ Martin Ratio Rank: 7676
Martin Ratio Rank
VTWO
VTWO Risk / Return Rank: 7777
Overall Rank
VTWO Sharpe Ratio Rank: 7878
Sharpe Ratio Rank
VTWO Sortino Ratio Rank: 7575
Sortino Ratio Rank
VTWO Omega Ratio Rank: 6868
Omega Ratio Rank
VTWO Calmar Ratio Rank: 8282
Calmar Ratio Rank
VTWO Martin Ratio Rank: 8080
Martin Ratio Rank
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.

QQQ vs. VTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ ETF (QQQ) and Vanguard Russell 2000 ETF (VTWO). 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.

QQQVTWODifference
Sharpe ratioReturn per unit of total volatility
2.42
2.22

+0.20

Sortino ratioReturn per unit of downside risk
3.12
3.01

+0.11

Omega ratioGain probability vs. loss probability

1.42

1.36

+0.06

Calmar ratioReturn relative to maximum drawdown

3.52

3.95

-0.43

Martin ratioReturn relative to average drawdown

13.12

14.00

-0.88

QQQ vs. VTWO - Sharpe Ratio Comparison

The current QQQ Sharpe Ratio is 2.42, which is comparable to the VTWO Sharpe Ratio of 2.22. The chart below compares the historical Sharpe Ratios of QQQ and VTWO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

QQQ vs. VTWO - Drawdown Comparison

The maximum QQQ drawdown since its inception was -82.97%, which is greater than VTWO's maximum drawdown of -41.19%. Use the drawdown chart below to compare losses from any high point for QQQ and VTWO.

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Drawdown Indicators

QQQVTWODifference

Max Drawdown

Largest peak-to-trough decline

-82.97%

-41.19%

-41.78%

Max Drawdown (1Y)

Largest decline over 1 year

-11.96%

-10.99%

-0.97%

Max Drawdown (3Y)

Largest decline over 3 years

-22.77%

-27.57%

+4.80%

Max Drawdown (5Y)

Largest decline over 5 years

-35.12%

-31.88%

-3.24%

Max Drawdown (10Y)

Largest decline over 10 years

-35.12%

-41.19%

+6.07%

Current Drawdown

Current decline from peak

-0.29%

0.00%

-0.29%

Average Drawdown

Average peak-to-trough decline

-32.75%

-8.37%

-24.38%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.20%

3.09%

+0.11%

Volatility

QQQ vs. VTWO - Volatility Comparison

Invesco QQQ ETF (QQQ) has a higher volatility of 8.14% compared to Vanguard Russell 2000 ETF (VTWO) at 7.16%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than VTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

QQQVTWODifference

Volatility (1M)

Calculated over the trailing 1-month period

8.14%

7.16%

+0.98%

Volatility (6M)

Calculated over the trailing 6-month period

14.12%

14.24%

-0.12%

Volatility (1Y)

Calculated over the trailing 1-year period

17.43%

19.61%

-2.18%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.59%

22.58%

+0.01%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

22.41%

23.14%

-0.73%

QQQ vs. VTWO - Expense Ratio Comparison

QQQ has a 0.18% expense ratio, which is higher than VTWO's 0.06% 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. VTWO - Dividend Comparison

QQQ's dividend yield for the trailing twelve months is around 0.38%, less than VTWO's 1.05% yield.

PositionTTM20252024202320222021202020192018201720162015
QQQ
Invesco QQQ ETF		0.38%0.45%0.56%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%
VTWO
Vanguard Russell 2000 ETF		1.05%1.25%1.21%1.45%1.48%1.13%0.92%1.36%1.41%1.18%1.27%1.23%

Frequently Asked Questions

QQQ and VTWO have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

QQQ has higher volatility (8.14%) compared to VTWO (7.16%). In terms of maximum drawdown, QQQ dropped -82.97% vs VTWO's -41.19%.

On 10-year performance, QQQ leads with 22.31% vs 11.54% for VTWO. On fees, VTWO is cheaper at 0.06% per year. On volatility, VTWO has been the lower-risk option at 7.16%. 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 22.31% return vs 11.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VTWO is cheaper with a 0.06% expense ratio, compared with 0.18% for QQQ.

VTWO has the higher dividend yield at 1.05%, compared with 0.38% for QQQ.

QQQ is categorized as Nasdaq-100, while VTWO is Small Cap Blend Equities. QQQ tracks NASDAQ-100 Index, while VTWO tracks Russell 2000 Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.18% for QQQ and 0.06% for VTWO.

QQQ currently has the higher Sharpe Ratio (2.42 vs 2.22), 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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