VFFVX vs. QQQ

Last updated Jun 4, 2026

VFFVX (Vanguard Target Retirement 2055 Fund) and QQQ (Invesco QQQ ETF) are both funds - VFFVX is a Target Retirement Date fund managed by Vanguard, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Over the past 10 years, VFFVX returned 11.96%/yr vs 21.94%/yr for QQQ. Their correlation of 0.86 suggests significant overlap in exposure. VFFVX charges 0.08%/yr vs 0.18%/yr for QQQ.

Performance

VFFVX vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Retirement 2055 Fund (VFFVX) 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, VFFVX achieves a 12.17% return, which is significantly lower than QQQ's 21.30% return. Over the past 10 years, VFFVX has underperformed QQQ with an annualized return of 11.96%, while QQQ has yielded a comparatively higher 21.94% annualized return.

VFFVX

• 1D: 0.37%
• 1M: 5.19%
• YTD: 12.17%
• 6M: 13.09%
• 1Y: 28.26%
• 3Y*: 19.73%
• 5Y*: 10.39%
• 10Y*: 11.96%

QQQ

• 1D: -0.26%
• 1M: 10.60%
• YTD: 21.30%
• 6M: 19.66%
• 1Y: 41.82%
• 3Y*: 28.78%
• 5Y*: 17.97%
• 10Y*: 21.94%

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

VFFVX vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFFVX Vanguard Target Retirement 2055 Fund	12.17%	21.44%	14.50%	20.39%	-17.48%	16.44%	16.33%	24.98%	-7.88%	21.39%
QQQ Invesco QQQ ETF	21.30%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between VFFVX and QQQ is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Aug 19, 2010	0.86

The correlation between VFFVX and QQQ has been stable across timeframes, ranging from 0.86 to 0.89 - a consistent structural relationship.

VFFVX vs. QQQ - Sectors Allocation Comparison

Sectors	VFFVX	QQQ
Technology	27.3%	53.8%
Financial Services	16.1%	0.2%
Industrials	12.4%	2.8%
Consumer Cyclical	9.4%	12.3%
Healthcare	8.3%	4.2%
Communication Services	8.0%	15.8%
Consumer Defensive	4.8%	7.7%
Energy	4.3%	0.6%
Basic Materials	4.3%	1.1%
Utilities	2.7%	1.4%
Real Estate	2.5%	0.1%

Return for Risk

VFFVX vs. QQQ — Risk / Return Rank

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

VFFVX

VFFVX Risk / Return Rank: 71
VFFVX Sharpe Ratio Rank: 75
VFFVX Sortino Ratio Rank: 69
VFFVX Omega Ratio Rank: 67
VFFVX Calmar Ratio Rank: 69
VFFVX Martin Ratio Rank: 75

QQQ

QQQ Risk / Return Rank: 73
QQQ Sharpe Ratio Rank: 79
QQQ Sortino Ratio Rank: 75
QQQ Omega Ratio Rank: 74
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 71

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.

VFFVX vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2055 Fund (VFFVX) 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.

	VFFVX	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.51	2.64	-0.13
Sortino ratio: Return per unit of downside risk	3.46	3.45	+0.02
Omega ratio: Gain probability vs. loss probability	1.46	1.45	+0.01
Calmar ratio: Return relative to maximum drawdown	3.21	3.51	-0.31
Martin ratio: Return relative to average drawdown	14.23	13.49	+0.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFFVX vs. QQQ - Sharpe Ratio Comparison

The current VFFVX Sharpe Ratio is 2.51, which is comparable to the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of VFFVX 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

	VFFVX	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.51	2.64	-0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.74	0.81	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.80	0.99	-0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.77	0.41	+0.36

Drawdowns

VFFVX vs. QQQ - Drawdown Comparison

The maximum VFFVX drawdown since its inception was -31.40%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for VFFVX and QQQ.

Drawdown Indicators

	VFFVX	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-31.40%	-82.97%	+51.57%
Max Drawdown (1Y) Largest decline over 1 year	-8.93%	-11.96%	+3.03%
Max Drawdown (3Y) Largest decline over 3 years	-14.52%	-22.77%	+8.25%
Max Drawdown (5Y) Largest decline over 5 years	-25.39%	-35.12%	+9.73%
Max Drawdown (10Y) Largest decline over 10 years	-31.40%	-35.12%	+3.72%
Current Drawdown Current decline from peak	0.00%	-0.26%	+0.26%
Average Drawdown Average peak-to-trough decline	-4.14%	-32.79%	+28.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.01%	3.11%	-1.10%

Volatility

VFFVX vs. QQQ - Volatility Comparison

The current volatility for Vanguard Target Retirement 2055 Fund (VFFVX) is 3.37%, while Invesco QQQ ETF (QQQ) has a volatility of 4.49%. This indicates that VFFVX experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFFVX	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.37%	4.49%	-1.12%
Volatility (6M) Calculated over the trailing 6-month period	9.08%	12.10%	-3.02%
Volatility (1Y) Calculated over the trailing 1-year period	11.42%	15.94%	-4.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.18%	22.38%	-8.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.10%	22.29%	-7.19%

VFFVX vs. QQQ - Expense Ratio Comparison

VFFVX has a 0.08% expense ratio, which is lower than QQQ's 0.18% 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

VFFVX vs. QQQ - Dividend Comparison

VFFVX's dividend yield for the trailing twelve months is around 1.85%, 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%
VFFVX Vanguard Target Retirement 2055 Fund	1.85%	2.08%	2.31%	2.18%	2.19%	10.03%	1.82%	2.15%	2.35%	1.83%	1.99%	1.98%

Frequently Asked Questions

Can I hold both VFFVX and QQQ in my portfolio?

VFFVX and QQQ have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFFVX or QQQ?

QQQ has higher volatility (4.49%) compared to VFFVX (3.37%). In terms of maximum drawdown, VFFVX dropped -31.40% vs QQQ's -82.97%.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.64 vs 2.51), 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.