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VPU vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VPU vs. QQQ

Last updated Jun 16, 2026

VPU (Vanguard Utilities ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - VPU is a Utilities Equities fund tracking the MSCI US Investable Market Utilities 25/50 Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, VPU returned 9.09%/yr vs 22.31%/yr for QQQ. At a 0.38 correlation, their price movements are largely independent. VPU charges 0.09%/yr vs 0.18%/yr for QQQ.

Performance

VPU vs. QQQ - Performance Comparison

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

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Returns By Period

In the year-to-date period, VPU achieves a 5.53% return, which is significantly lower than QQQ's 21.26% return. Over the past 10 years, VPU has underperformed QQQ with an annualized return of 9.09%, while QQQ has yielded a comparatively higher 22.31% annualized return.

VPU

1D
0.58%
1M
2.00%
YTD
5.53%
6M
4.90%
1Y
13.27%
3Y*
13.34%
5Y*
9.53%
10Y*
9.09%

QQQ

1D
3.14%
1M
4.95%
YTD
21.26%
6M
22.17%
1Y
41.87%
3Y*
27.20%
5Y*
17.59%
10Y*
22.31%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VPU vs. QQQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VPU
Vanguard Utilities ETF		5.53%16.46%23.04%-7.45%1.06%17.40%-0.74%24.89%4.38%12.44%
QQQ
Invesco QQQ ETF		21.26%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%32.66%

Correlation

The correlation between VPU and QQQ is 0.10, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.10

Correlation (3Y)
Calculated over the trailing 3-year period

0.13

Correlation (5Y)
Calculated over the trailing 5-year period

0.24

Correlation (10Y)
Calculated over the trailing 10-year period

0.24

Correlation (All Time)
Calculated using the full available price history since Jan 30, 2004

0.38

Over the past year, the correlation between VPU and QQQ has dropped to 0.10 - well below their long-term average of 0.38, suggesting their price drivers have been diverging.

VPU vs. QQQ - Sectors Allocation Comparison

Sectors
VPU
QQQ

Utilities

99.3%
1.2%

Energy

0.5%
0.5%

Industrials

0.2%
2.6%

Basic Materials

-

1.0%

Communication Services

-

14.3%

Consumer Cyclical

-

11.4%

Consumer Defensive

-

6.4%

Financial Services

-

0.2%

Healthcare

-

3.7%

Real Estate

-

0.1%

Technology

-

58.7%

Utilities

VPU
99.3%
QQQ
1.2%

Energy

VPU
0.5%
QQQ
0.5%

Industrials

VPU
0.2%
QQQ
2.6%

Basic Materials

VPU

-

QQQ
1.0%

Communication Services

VPU

-

QQQ
14.3%

Consumer Cyclical

VPU

-

QQQ
11.4%

Consumer Defensive

VPU

-

QQQ
6.4%

Financial Services

VPU

-

QQQ
0.2%

Healthcare

VPU

-

QQQ
3.7%

Real Estate

VPU

-

QQQ
0.1%

Technology

VPU

-

QQQ
58.7%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Utilities ETF

Invesco QQQ ETF

Often compared with VPU:
VPU vs. XLUVPU vs. FUTYVPU vs. VOOVPU vs. IDUVPU vs. SPYVPU vs. VUIAXVPU vs. SCHD
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. QQQI

Return for Risk

VPU vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VPU
VPU Risk / Return Rank: 2828
Overall Rank
VPU Sharpe Ratio Rank: 2828
Sharpe Ratio Rank
VPU Sortino Ratio Rank: 2626
Sortino Ratio Rank
VPU Omega Ratio Rank: 2727
Omega Ratio Rank
VPU Calmar Ratio Rank: 3333
Calmar Ratio Rank
VPU Martin Ratio Rank: 2626
Martin Ratio Rank
QQQ
QQQ Risk / Return Rank: 7979
Overall Rank
QQQ Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 7979
Sortino Ratio Rank
QQQ Omega Ratio Rank: 8181
Omega Ratio Rank
QQQ Calmar Ratio Rank: 7676
Calmar Ratio Rank
QQQ Martin Ratio Rank: 7676
Martin Ratio Rank
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.

VPU vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Utilities ETF (VPU) 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.

VPUQQQDifference
Sharpe ratioReturn per unit of total volatility
0.93
2.42

-1.49

Sortino ratioReturn per unit of downside risk
1.32
3.12

-1.80

Omega ratioGain probability vs. loss probability

1.17

1.42

-0.26

Calmar ratioReturn relative to maximum drawdown

1.50

3.52

-2.02

Martin ratioReturn relative to average drawdown

3.23

13.12

-9.89

VPU vs. QQQ - Sharpe Ratio Comparison

The current VPU Sharpe Ratio is 0.93, which is lower than the QQQ Sharpe Ratio of 2.42. The chart below compares the historical Sharpe Ratios of VPU 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.

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Drawdowns

VPU vs. QQQ - Drawdown Comparison

The maximum VPU drawdown since its inception was -46.31%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for VPU and QQQ.

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Drawdown Indicators

VPUQQQDifference

Max Drawdown

Largest peak-to-trough decline

-46.31%

-82.97%

+36.66%

Max Drawdown (1Y)

Largest decline over 1 year

-8.90%

-11.96%

+3.06%

Max Drawdown (3Y)

Largest decline over 3 years

-17.34%

-22.77%

+5.43%

Max Drawdown (5Y)

Largest decline over 5 years

-25.15%

-35.12%

+9.97%

Max Drawdown (10Y)

Largest decline over 10 years

-36.42%

-35.12%

-1.30%

Current Drawdown

Current decline from peak

-5.14%

-0.29%

-4.85%

Average Drawdown

Average peak-to-trough decline

-7.78%

-32.75%

+24.97%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.11%

3.20%

+0.91%

Volatility

VPU vs. QQQ - Volatility Comparison

The current volatility for Vanguard Utilities ETF (VPU) is 5.55%, while Invesco QQQ ETF (QQQ) has a volatility of 8.14%. This indicates that VPU 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.

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Volatility by Period

VPUQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.55%

8.14%

-2.59%

Volatility (6M)

Calculated over the trailing 6-month period

11.50%

14.12%

-2.62%

Volatility (1Y)

Calculated over the trailing 1-year period

14.39%

17.43%

-3.04%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.08%

22.59%

-5.51%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.14%

22.41%

-3.27%

VPU vs. QQQ - Expense Ratio Comparison

VPU has a 0.09% 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

VPU vs. QQQ - Dividend Comparison

VPU's dividend yield for the trailing twelve months is around 2.63%, more than QQQ's 0.38% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
VPU
Vanguard Utilities ETF		2.63%2.73%3.02%3.49%2.98%2.70%3.17%2.83%3.23%3.18%3.19%3.63%

Frequently Asked Questions

VPU and QQQ have a correlation of 0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

QQQ has higher volatility (8.14%) compared to VPU (5.55%). In terms of maximum drawdown, VPU dropped -46.31% vs QQQ's -82.97%.

On 10-year performance, QQQ leads with 22.31% vs 9.09% for VPU. On fees, VPU is cheaper at 0.09% per year. On volatility, VPU has been the lower-risk option at 5.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QQQ has performed better with a 22.31% return vs 9.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VPU is cheaper with a 0.09% expense ratio, compared with 0.18% for QQQ.

VPU has the higher dividend yield at 2.63%, compared with 0.38% for QQQ.

VPU is categorized as Utilities Equities, while QQQ is Nasdaq-100. VPU tracks MSCI US Investable Market Utilities 25/50 Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.09% for VPU and 0.18% for QQQ.

QQQ currently has the higher Sharpe Ratio (2.42 vs 0.93), 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.

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