VEVFX vs. QQQ

Last updated Jun 3, 2026

VEVFX (Vanguard Explorer Value Fund) and QQQ (Invesco QQQ ETF) are both funds - VEVFX is a Small Cap Value Equities fund managed by Vanguard, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Over the past 10 years, VEVFX returned 9.83%/yr vs 21.97%/yr for QQQ. A 0.69 correlation means they provide meaningful diversification when combined. VEVFX charges 0.52%/yr vs 0.18%/yr for QQQ.

Performance

VEVFX vs. QQQ - Performance Comparison

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

Returns By Period

In the year-to-date period, VEVFX achieves a 12.66% return, which is significantly lower than QQQ's 21.62% return. Over the past 10 years, VEVFX has underperformed QQQ with an annualized return of 9.83%, while QQQ has yielded a comparatively higher 21.97% annualized return.

VEVFX

• 1D: -0.04%
• 1M: 0.34%
• YTD: 12.66%
• 6M: 15.71%
• 1Y: 31.49%
• 3Y*: 16.00%
• 5Y*: 6.72%
• 10Y*: 9.83%

QQQ

• 1D: 0.46%
• 1M: 10.68%
• YTD: 21.62%
• 6M: 20.27%
• 1Y: 43.30%
• 3Y*: 28.89%
• 5Y*: 18.43%
• 10Y*: 21.97%

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

VEVFX vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEVFX Vanguard Explorer Value Fund	12.66%	7.40%	13.81%	15.29%	-14.11%	28.14%	3.29%	26.92%	-13.03%	12.43%
QQQ Invesco QQQ ETF	21.62%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between VEVFX and QQQ is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since Mar 31, 2010	0.69

The correlation between VEVFX and QQQ shifts across timeframes, from 0.56 (1 year) to 0.69 (all time), reflecting how their relationship changes across market environments.

VEVFX vs. QQQ - Sectors Allocation Comparison

Sectors	VEVFX	QQQ
Financial Services	22.5%	0.2%
Industrials	16.6%	2.8%
Consumer Cyclical	16.0%	12.3%
Technology	9.9%	53.8%
Real Estate	7.9%	0.1%
Healthcare	7.5%	4.2%
Consumer Defensive	4.7%	7.7%
Energy	4.3%	0.6%
Communication Services	4.1%	15.8%
Utilities	3.4%	1.4%
Basic Materials	3.3%	1.1%

Return for Risk

VEVFX vs. QQQ — Risk / Return Rank

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

VEVFX

VEVFX Risk / Return Rank: 41
VEVFX Sharpe Ratio Rank: 36
VEVFX Sortino Ratio Rank: 38
VEVFX Omega Ratio Rank: 33
VEVFX Calmar Ratio Rank: 57
VEVFX Martin Ratio Rank: 42

QQQ

QQQ Risk / Return Rank: 77
QQQ Sharpe Ratio Rank: 83
QQQ Sortino Ratio Rank: 78
QQQ Omega Ratio Rank: 77
QQQ Calmar Ratio Rank: 73
QQQ Martin Ratio Rank: 74

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.

VEVFX vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Explorer Value Fund (VEVFX) and Invesco QQQ ETF (QQQ). 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.

	VEVFX	QQQ	Difference
Sharpe ratio Return per unit of total volatility	1.76	2.73	-0.97
Sortino ratio Return per unit of downside risk	2.61	3.55	-0.94
Omega ratio Gain probability vs. loss probability	1.31	1.47	-0.16
Calmar ratio Return relative to maximum drawdown	2.92	3.71	-0.80
Martin ratio Return relative to average drawdown	9.02	14.30	-5.28
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEVFX vs. QQQ - Sharpe Ratio Comparison

The current VEVFX Sharpe Ratio is 1.76, which is lower than the QQQ Sharpe Ratio of 2.73. The chart below compares the historical Sharpe Ratios of VEVFX and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VEVFX	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.76	2.73	-0.97
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.83	-0.50
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.44	0.99	-0.55
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.41	+0.09

Drawdowns

VEVFX vs. QQQ - Drawdown Comparison

The maximum VEVFX drawdown since its inception was -47.53%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for VEVFX and QQQ.

Drawdown Indicators

	VEVFX	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-47.53%	-82.97%	+35.44%
Max Drawdown (1Y) Largest decline over 1 year	-10.31%	-11.96%	+1.65%
Max Drawdown (3Y) Largest decline over 3 years	-27.32%	-22.77%	-4.55%
Max Drawdown (5Y) Largest decline over 5 years	-27.32%	-35.12%	+7.80%
Max Drawdown (10Y) Largest decline over 10 years	-47.53%	-35.12%	-12.41%
Current Drawdown Current decline from peak	-1.11%	0.00%	-1.11%
Average Drawdown Average peak-to-trough decline	-6.62%	-32.79%	+26.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.33%	3.11%	+0.22%

Volatility

VEVFX vs. QQQ - Volatility Comparison

Vanguard Explorer Value Fund (VEVFX) and Invesco QQQ ETF (QQQ) have volatilities of 4.63% and 4.48%, 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

	VEVFX	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.63%	4.48%	+0.15%
Volatility (6M) Calculated over the trailing 6-month period	11.96%	12.11%	-0.15%
Volatility (1Y) Calculated over the trailing 1-year period	17.62%	15.95%	+1.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.71%	22.39%	-1.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.49%	22.30%	+0.19%

VEVFX vs. QQQ - Expense Ratio Comparison

VEVFX has a 0.52% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

VEVFX vs. QQQ - Dividend Comparison

VEVFX's dividend yield for the trailing twelve months is around 9.11%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VEVFX Vanguard Explorer Value Fund	9.11%	10.26%	14.55%	2.49%	3.85%	3.83%	0.86%	1.47%	8.92%	3.00%	2.26%	6.31%

Frequently Asked Questions

Can I hold both VEVFX and QQQ in my portfolio?

VEVFX and QQQ have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VEVFX or QQQ?

VEVFX has higher volatility (4.63%) compared to QQQ (4.48%). In terms of maximum drawdown, VEVFX dropped -47.53% vs QQQ's -82.97%.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.73 vs 1.76), 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.