VPMAX vs. QQQ

Last updated Jun 4, 2026

VPMAX (Vanguard PRIMECAP Fund Admiral Shares) and QQQ (Invesco QQQ ETF) are both funds - VPMAX is a Large Cap Blend Equities fund managed by Vanguard, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Over the past 10 years, VPMAX returned 17.65%/yr vs 21.94%/yr for QQQ. Their correlation of 0.89 suggests significant overlap in exposure. VPMAX charges 0.31%/yr vs 0.18%/yr for QQQ.

Performance

VPMAX vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard PRIMECAP Fund Admiral Shares (VPMAX) 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, VPMAX achieves a 25.44% return, which is significantly higher than QQQ's 21.30% return. Over the past 10 years, VPMAX has underperformed QQQ with an annualized return of 17.65%, while QQQ has yielded a comparatively higher 21.94% annualized return.

VPMAX

• 1D: 0.35%
• 1M: 12.86%
• YTD: 25.44%
• 6M: 26.85%
• 1Y: 58.91%
• 3Y*: 28.09%
• 5Y*: 16.52%
• 10Y*: 17.65%

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)

VPMAX vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VPMAX Vanguard PRIMECAP Fund Admiral Shares	25.44%	29.70%	13.30%	28.25%	-15.16%	21.72%	17.23%	27.88%	-1.93%	28.28%
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 VPMAX and QQQ is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Nov 13, 2001	0.89

The correlation between VPMAX and QQQ has been stable across timeframes, ranging from 0.83 to 0.89 - a consistent structural relationship.

VPMAX vs. QQQ - Sectors Allocation Comparison

Sectors	VPMAX	QQQ
Technology	29.2%	53.8%
Healthcare	25.4%	4.2%
Industrials	13.3%	2.8%
Consumer Cyclical	11.9%	12.3%
Communication Services	7.8%	15.8%
Financial Services	7.7%	0.2%
Energy	1.8%	0.6%
Basic Materials	1.6%	1.1%
Consumer Defensive	1.2%	7.7%
Real Estate	0.1%	0.1%
Utilities	0.0%	1.4%

Return for Risk

VPMAX vs. QQQ — Risk / Return Rank

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

VPMAX

VPMAX Risk / Return Rank: 94
VPMAX Sharpe Ratio Rank: 97
VPMAX Sortino Ratio Rank: 95
VPMAX Omega Ratio Rank: 91
VPMAX Calmar Ratio Rank: 93
VPMAX Martin Ratio Rank: 96

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.

VPMAX vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard PRIMECAP Fund Admiral Shares (VPMAX) 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.

	VPMAX	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	3.76	2.64	+1.12
Sortino ratio: Return per unit of downside risk	5.05	3.45	+1.61
Omega ratio: Gain probability vs. loss probability	1.66	1.45	+0.20
Calmar ratio: Return relative to maximum drawdown	5.14	3.51	+1.62
Martin ratio: Return relative to average drawdown	23.68	13.49	+10.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VPMAX vs. QQQ - Sharpe Ratio Comparison

The current VPMAX Sharpe Ratio is 3.76, which is higher than the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of VPMAX 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

	VPMAX	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.76	2.64	+1.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.91	0.81	+0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.92	0.99	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.65	0.41	+0.24

Drawdowns

VPMAX vs. QQQ - Drawdown Comparison

The maximum VPMAX drawdown since its inception was -48.32%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for VPMAX and QQQ.

Drawdown Indicators

	VPMAX	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-48.32%	-82.97%	+34.65%
Max Drawdown (1Y) Largest decline over 1 year	-11.72%	-11.96%	+0.24%
Max Drawdown (3Y) Largest decline over 3 years	-20.55%	-22.77%	+2.22%
Max Drawdown (5Y) Largest decline over 5 years	-25.21%	-35.12%	+9.91%
Max Drawdown (10Y) Largest decline over 10 years	-32.65%	-35.12%	+2.47%
Current Drawdown Current decline from peak	0.00%	-0.26%	+0.26%
Average Drawdown Average peak-to-trough decline	-6.58%	-32.79%	+26.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.54%	3.11%	-0.57%

Volatility

VPMAX vs. QQQ - Volatility Comparison

Vanguard PRIMECAP Fund Admiral Shares (VPMAX) has a higher volatility of 6.18% compared to Invesco QQQ ETF (QQQ) at 4.49%. This indicates that VPMAX's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VPMAX	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.18%	4.49%	+1.69%
Volatility (6M) Calculated over the trailing 6-month period	12.85%	12.10%	+0.75%
Volatility (1Y) Calculated over the trailing 1-year period	16.02%	15.94%	+0.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.26%	22.38%	-4.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.19%	22.29%	-3.10%

VPMAX vs. QQQ - Expense Ratio Comparison

VPMAX has a 0.31% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

VPMAX vs. QQQ - Dividend Comparison

VPMAX's dividend yield for the trailing twelve months is around 13.12%, 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%
VPMAX Vanguard PRIMECAP Fund Admiral Shares	13.12%	16.46%	6.71%	7.24%	9.94%	10.18%	9.82%	7.23%	8.43%	4.52%	5.13%	5.99%

Frequently Asked Questions

Can I hold both VPMAX and QQQ in my portfolio?

VPMAX and QQQ have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VPMAX or QQQ?

VPMAX has higher volatility (6.18%) compared to QQQ (4.49%). In terms of maximum drawdown, VPMAX dropped -48.32% vs QQQ's -82.97%.

Which has better risk-adjusted returns?

VPMAX currently has the higher Sharpe Ratio (3.76 vs 2.64), 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.