QQQ vs. VUG
Compare and contrast key facts about Invesco QQQ (QQQ) and Vanguard Growth ETF (VUG).
QQQ and VUG 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. VUG is a passively managed fund by Vanguard that tracks the performance of the CRSP U.S. Large Cap Growth Index. It was launched on Jan 26, 2004. Both QQQ and VUG 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 VUG.
Key characteristics
| QQQ | VUG | |
|---|---|---|
| YTD Return | 21.27% | 26.62% |
| 1Y Return | 38.31% | 43.98% |
| 3Y Return (Ann) | 10.36% | 9.22% |
| 5Y Return (Ann) | 21.70% | 19.36% |
| 10Y Return (Ann) | 18.70% | 15.94% |
| Sharpe Ratio | 2.12 | 2.53 |
| Sortino Ratio | 2.77 | 3.26 |
| Omega Ratio | 1.37 | 1.45 |
| Calmar Ratio | 2.68 | 2.29 |
| Martin Ratio | 9.95 | 12.98 |
| Ulcer Index | 3.72% | 3.30% |
| Daily Std Dev | 17.50% | 16.92% |
| Max Drawdown | -82.98% | -50.68% |
| Current Drawdown | -1.55% | 0.00% |
Correlation
The correlation between QQQ and VUG 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.
Performance
QQQ vs. VUG - Performance Comparison
In the year-to-date period, QQQ achieves a 21.27% return, which is significantly lower than VUG's 26.62% return. Over the past 10 years, QQQ has outperformed VUG with an annualized return of 18.70%, while VUG has yielded a comparatively lower 15.94% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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QQQ vs. VUG - Expense Ratio Comparison
QQQ has a 0.20% expense ratio, which is higher than VUG's 0.04% 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%.
Risk-Adjusted Performance
QQQ vs. VUG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ (QQQ) and Vanguard Growth ETF (VUG). 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.
Dividends
QQQ vs. VUG - Dividend Comparison
QQQ's dividend yield for the trailing twelve months is around 0.61%, more than VUG's 0.50% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QQQ Invesco QQQ | 0.61% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
VUG Vanguard Growth ETF | 0.50% | 0.58% | 0.70% | 0.48% | 0.66% | 0.95% | 1.32% | 1.14% | 1.39% | 1.30% | 1.21% | 1.19% |
Drawdowns
QQQ vs. VUG - Drawdown Comparison
The maximum QQQ drawdown since its inception was -82.98%, which is greater than VUG's maximum drawdown of -50.68%. Use the drawdown chart below to compare losses from any high point for QQQ and VUG. For additional features, visit the drawdowns tool.
Volatility
QQQ vs. VUG - Volatility Comparison
Invesco QQQ (QQQ) has a higher volatility of 3.45% compared to Vanguard Growth ETF (VUG) at 3.25%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than VUG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.