VMGRX vs. QQQ

Last updated Jun 24, 2026

VMGRX (Vanguard Mid-Cap Growth Fund) and QQQ (Invesco QQQ ETF) are both funds - VMGRX is a Mid Cap Growth Equities fund managed by Vanguard, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Over the past 10 years, VMGRX returned 10.76%/yr vs 22.07%/yr for QQQ. Their correlation of 0.85 suggests significant overlap in exposure. VMGRX charges 0.33%/yr vs 0.18%/yr for QQQ.

Performance

VMGRX vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mid-Cap Growth Fund (VMGRX) 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, VMGRX achieves a 3.94% return, which is significantly lower than QQQ's 16.45% return. Over the past 10 years, VMGRX has underperformed QQQ with an annualized return of 10.76%, while QQQ has yielded a comparatively higher 22.07% annualized return.

VMGRX

• 1D: -0.27%
• 1M: 3.36%
• YTD: 3.94%
• 6M: 2.01%
• 1Y: 9.47%
• 3Y*: 13.67%
• 5Y*: 3.23%
• 10Y*: 10.76%

QQQ

• 1D: -3.29%
• 1M: -0.43%
• YTD: 16.45%
• 6M: 14.99%
• 1Y: 34.88%
• 3Y*: 26.05%
• 5Y*: 16.01%
• 10Y*: 22.07%

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

VMGRX vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VMGRX Vanguard Mid-Cap Growth Fund	3.94%	8.80%	17.73%	24.15%	-30.13%	9.21%	33.40%	32.06%	-3.52%	21.60%
QQQ Invesco QQQ ETF	16.45%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between VMGRX and QQQ is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (10Y) Calculated over the trailing 10-year period	0.84
Correlation (All Time) Calculated using the full available price history since Mar 10, 1999	0.85

The correlation between VMGRX and QQQ has been stable across timeframes, ranging from 0.76 to 0.85 - a consistent structural relationship.

VMGRX vs. QQQ - Sectors Allocation Comparison

Sectors	VMGRX	QQQ
Technology	25.5%	58.7%
Consumer Cyclical	22.2%	11.4%
Industrials	17.9%	2.6%
Communication Services	15.3%	14.3%
Healthcare	8.1%	3.7%
Financial Services	4.2%	0.2%
Energy	3.3%	0.5%
Consumer Defensive	3.2%	6.4%
Utilities	2.0%	1.2%
Real Estate	1.6%	0.1%
Basic Materials	1.4%	1.0%

Return for Risk

VMGRX vs. QQQ — Risk / Return Rank

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

VMGRX

VMGRX Risk / Return Rank: 7
VMGRX Sharpe Ratio Rank: 7
VMGRX Sortino Ratio Rank: 7
VMGRX Omega Ratio Rank: 7
VMGRX Calmar Ratio Rank: 6
VMGRX Martin Ratio Rank: 7

QQQ

QQQ Risk / Return Rank: 59
QQQ Sharpe Ratio Rank: 61
QQQ Sortino Ratio Rank: 55
QQQ Omega Ratio Rank: 58
QQQ Calmar Ratio Rank: 61
QQQ Martin Ratio Rank: 62

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.

VMGRX vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap Growth Fund (VMGRX) 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.

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.

	VMGRX	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	0.53	1.95	-1.43
Sortino ratio: Return per unit of downside risk	0.85	2.57	-1.72
Omega ratio: Gain probability vs. loss probability	1.10	1.35	-0.24
Calmar ratio: Return relative to maximum drawdown	0.55	2.93	-2.37
Martin ratio: Return relative to average drawdown	1.72	10.86	-9.15

VMGRX vs. QQQ - Sharpe Ratio Comparison

The current VMGRX Sharpe Ratio is 0.53, which is lower than the QQQ Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of VMGRX 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.

Drawdowns

VMGRX vs. QQQ - Drawdown Comparison

The maximum VMGRX drawdown since its inception was -71.74%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for VMGRX and QQQ.

Drawdown Indicators

	VMGRX	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-71.74%	-82.97%	+11.23%
Max Drawdown (1Y) Largest decline over 1 year	-19.09%	-11.96%	-7.13%
Max Drawdown (3Y) Largest decline over 3 years	-26.85%	-22.77%	-4.08%
Max Drawdown (5Y) Largest decline over 5 years	-39.71%	-35.12%	-4.59%
Max Drawdown (10Y) Largest decline over 10 years	-39.71%	-35.12%	-4.59%
Current Drawdown Current decline from peak	-0.27%	-4.25%	+3.98%
Average Drawdown Average peak-to-trough decline	-24.45%	-32.73%	+8.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.15%	3.22%	+2.93%

Volatility

VMGRX vs. QQQ - Volatility Comparison

The current volatility for Vanguard Mid-Cap Growth Fund (VMGRX) is 7.75%, while Invesco QQQ ETF (QQQ) has a volatility of 9.17%. This indicates that VMGRX 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

	VMGRX	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.75%	9.17%	-1.42%
Volatility (6M) Calculated over the trailing 6-month period	16.51%	14.57%	+1.94%
Volatility (1Y) Calculated over the trailing 1-year period	20.11%	17.96%	+2.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.43%	22.69%	+0.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.41%	22.42%	-0.01%

VMGRX vs. QQQ - Expense Ratio Comparison

VMGRX has a 0.33% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

VMGRX vs. QQQ - Dividend Comparison

VMGRX's dividend yield for the trailing twelve months is around 17.07%, more than QQQ's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQ Invesco QQQ ETF	0.43%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%
VMGRX Vanguard Mid-Cap Growth Fund	17.07%	17.74%	1.80%	0.39%	0.26%	34.53%	6.30%	10.43%	14.53%	3.13%	0.67%	8.20%

Frequently Asked Questions

Can I hold both VMGRX and QQQ in my portfolio?

VMGRX and QQQ have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VMGRX or QQQ?

QQQ has higher volatility (9.17%) compared to VMGRX (7.75%). In terms of maximum drawdown, VMGRX dropped -71.74% vs QQQ's -82.97%.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (1.95 vs 0.53), 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.