VDE vs. QQQM

Last updated Jun 13, 2026

VDE (Vanguard Energy ETF) and QQQM (Invesco NASDAQ 100 ETF) are both exchange-traded funds - VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index, while QQQM is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 5 years, VDE returned 20.05%/yr vs 16.94%/yr for QQQM. At a 0.17 correlation, their price movements are largely independent. VDE charges 0.09%/yr vs 0.15%/yr for QQQM.

Performance

VDE vs. QQQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Energy ETF (VDE) and Invesco NASDAQ 100 ETF (QQQM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VDE achieves a 29.66% return, which is significantly higher than QQQM's 17.59% return.

VDE

• 1D: 0.77%
• 1M: -0.78%
• YTD: 29.66%
• 6M: 28.33%
• 1Y: 37.57%
• 3Y*: 16.71%
• 5Y*: 20.05%
• 10Y*: 9.39%

QQQM

• 1D: 0.67%
• 1M: 0.97%
• YTD: 17.59%
• 6M: 17.91%
• 1Y: 35.90%
• 3Y*: 26.52%
• 5Y*: 16.94%
• 10Y*: —

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

VDE vs. QQQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VDE Vanguard Energy ETF	29.66%	7.11%	6.75%	0.03%	62.89%	56.31%	25.30%
QQQM Invesco NASDAQ 100 ETF	17.59%	20.85%	25.68%	55.01%	-32.52%	27.45%	6.64%

Correlation

The correlation between VDE and QQQM is -0.13, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.07
Correlation (5Y) Calculated over the trailing 5-year period	0.18
Correlation (All Time) Calculated using the full available price history since Oct 13, 2020	0.17

The correlation between VDE and QQQM shifts across timeframes, from -0.13 (1 year) to 0.18 (5 years), reflecting how their relationship changes across market environments.

VDE vs. QQQM - Sectors Allocation Comparison

Sectors	VDE	QQQM
Energy	99.5%	0.6%
Basic Materials	0.4%	1.1%
Industrials	0.1%	2.8%
Communication Services	-	15.8%
Consumer Cyclical	-	12.3%
Consumer Defensive	-	7.7%
Financial Services	-	0.2%
Healthcare	-	4.2%
Real Estate	-	0.1%
Technology	-	53.8%
Utilities	-	1.4%

Return for Risk

VDE vs. QQQM — Risk / Return Rank

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

VDE

VDE Risk / Return Rank: 62
VDE Sharpe Ratio Rank: 65
VDE Sortino Ratio Rank: 59
VDE Omega Ratio Rank: 55
VDE Calmar Ratio Rank: 73
VDE Martin Ratio Rank: 58

QQQM

QQQM Risk / Return Rank: 72
QQQM Sharpe Ratio Rank: 76
QQQM Sortino Ratio Rank: 71
QQQM Omega Ratio Rank: 73
QQQM Calmar Ratio Rank: 69
QQQM Martin Ratio Rank: 70

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.

VDE vs. QQQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) and Invesco NASDAQ 100 ETF (QQQM). 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.

	VDE	QQQM	Difference
Sharpe ratio: Return per unit of total volatility	1.85	2.11	-0.26
Sortino ratio: Return per unit of downside risk	2.43	2.74	-0.32
Omega ratio: Gain probability vs. loss probability	1.30	1.37	-0.07
Calmar ratio: Return relative to maximum drawdown	3.20	3.02	+0.18
Martin ratio: Return relative to average drawdown	8.95	11.23	-2.28

VDE vs. QQQM - Sharpe Ratio Comparison

The current VDE Sharpe Ratio is 1.85, which is comparable to the QQQM Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of VDE and QQQM, 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

VDE vs. QQQM - Drawdown Comparison

The maximum VDE drawdown since its inception was -74.20%, which is greater than QQQM's maximum drawdown of -35.04%. Use the drawdown chart below to compare losses from any high point for VDE and QQQM.

Drawdown Indicators

	VDE	QQQM	Difference
Max Drawdown Largest peak-to-trough decline	-74.20%	-35.04%	-39.16%
Max Drawdown (1Y) Largest decline over 1 year	-11.80%	-11.96%	+0.16%
Max Drawdown (3Y) Largest decline over 3 years	-21.41%	-22.70%	+1.29%
Max Drawdown (5Y) Largest decline over 5 years	-26.58%	-35.04%	+8.46%
Max Drawdown (10Y) Largest decline over 10 years	-69.29%	—	—
Current Drawdown Current decline from peak	-8.26%	-3.33%	-4.93%
Average Drawdown Average peak-to-trough decline	-19.95%	-8.23%	-11.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.21%	3.21%	+1.00%

Volatility

VDE vs. QQQM - Volatility Comparison

Vanguard Energy ETF (VDE) and Invesco NASDAQ 100 ETF (QQQM) have volatilities of 7.15% and 7.45%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDE	QQQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.15%	7.45%	-0.30%
Volatility (6M) Calculated over the trailing 6-month period	16.59%	13.71%	+2.88%
Volatility (1Y) Calculated over the trailing 1-year period	20.46%	17.11%	+3.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.45%	22.40%	+4.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.93%	22.22%	+7.71%

VDE vs. QQQM - Expense Ratio Comparison

VDE has a 0.09% expense ratio, which is lower than QQQM's 0.15% 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

VDE vs. QQQM - Dividend Comparison

VDE's dividend yield for the trailing twelve months is around 2.42%, more than QQQM's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQM Invesco NASDAQ 100 ETF	0.43%	0.50%	0.61%	0.65%	0.83%	0.40%	0.16%	0.00%	0.00%	0.00%	0.00%	0.00%
VDE Vanguard Energy ETF	2.42%	3.11%	3.23%	3.34%	3.65%	4.13%	4.76%	3.42%	3.35%	2.90%	2.31%	3.17%

Frequently Asked Questions

Can I hold both VDE and QQQM in my portfolio?

VDE and QQQM have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VDE or QQQM?

QQQM has higher volatility (7.45%) compared to VDE (7.15%). In terms of maximum drawdown, VDE dropped -74.20% vs QQQM's -35.04%.

Which ETF is better, VDE or QQQM?

On 5-year performance, VDE leads with 20.05% vs 16.94% for QQQM. On fees, VDE is cheaper at 0.09% per year. On volatility, VDE has been the lower-risk option at 7.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VDE or QQQM?

Over the 5-year period, VDE has performed better with a 20.05% return vs 16.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VDE or QQQM?

VDE is cheaper with a 0.09% expense ratio, compared with 0.15% for QQQM.

Which ETF pays a higher dividend yield, VDE or QQQM?

VDE has the higher dividend yield at 2.42%, compared with 0.43% for QQQM.

What is the main difference between VDE and QQQM?

VDE is categorized as Energy Equities, while QQQM is Nasdaq-100. VDE tracks MSCI US Investable Market Energy 25/50 Index, while QQQM tracks NASDAQ-100 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.09% for VDE and 0.15% for QQQM.

Which has better risk-adjusted returns?

QQQM currently has the higher Sharpe Ratio (2.11 vs 1.85), 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.