VTI vs. QQQ

Last updated Aug 5, 2026

VTI (Vanguard Total Stock Market ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, VTI returned 14.87%/yr vs 20.86%/yr for QQQ. Their correlation of 0.88 means they have usually moved in the same direction. VTI charges 0.03%/yr vs 0.18%/yr for QQQ.

Performance

VTI vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Stock Market ETF (VTI) 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, VTI achieves a 14.27% return, which is significantly lower than QQQ's 18.11% return. Over the past 10 years, VTI has underperformed QQQ with an annualized return of 14.87%, while QQQ has yielded a comparatively higher 20.86% annualized return.

VTI

• 1D: 1.87%
• 1M: 3.27%
• 6M: 12.73%
• YTD: 14.27%
• 1Y: 24.07%
• 3Y*: 21.13%
• 5Y*: 12.31%
• 10Y*: 14.87%
• ALL TIME*: 9.72%

QQQ

• 1D: 3.40%
• 1M: 1.58%
• 6M: 17.69%
• YTD: 18.11%
• 1Y: 28.94%
• 3Y*: 25.56%
• 5Y*: 15.07%
• 10Y*: 20.86%
• ALL TIME*: 10.84%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
QQQ Invesco QQQ ETF	$33.34B	$28.86B	$31.95B
VTI Vanguard Total Stock Market ETF	$1.13B	$1.17B	$1.24B

VTI vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTI Vanguard Total Stock Market ETF	14.27%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%
QQQ Invesco QQQ ETF	18.11%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between VTI and QQQ is 0.92, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.92
Correlation (3Y) Balances recent behavior with more history.	0.92
Correlation (5Y) Shows whether the relationship held over a longer period.	0.93
Correlation (10Y) Provides a long-term view across more market conditions.	0.90
Correlation (All Time) Calculated using the full available price history since May 31, 2001	0.88

The correlation between VTI and QQQ has been stable across timeframes, ranging from 0.88 to 0.93 - a consistent structural relationship.

VTI vs. QQQ - Sectors Allocation Comparison

Sectors	VTI	QQQ
Technology	36.1%	60.9%
Financial Services	11.8%	0.2%
Industrials	10.2%	2.7%
Healthcare	9.7%	3.6%
Consumer Cyclical	9.4%	10.7%
Communication Services	9.1%	13.1%
Consumer Defensive	4.3%	6.3%
Energy	3.2%	0.5%
Real Estate	2.3%	0.1%
Utilities	2.2%	1.1%
Basic Materials	1.9%	1.0%

Return for Risk

VTI vs. QQQ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VTI

VTI Risk / Return Rank: 72
VTI Sharpe Ratio Rank: 72
VTI Sortino Ratio Rank: 70
VTI Omega Ratio Rank: 70
VTI Calmar Ratio Rank: 70
VTI Martin Ratio Rank: 80

QQQ

QQQ Risk / Return Rank: 55
QQQ Sharpe Ratio Rank: 54
QQQ Sortino Ratio Rank: 52
QQQ Omega Ratio Rank: 51
QQQ Calmar Ratio Rank: 62
QQQ Martin Ratio Rank: 58

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VTI vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Stock Market ETF (VTI) 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.

	VTI	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.85	1.49	+0.36
Sortino ratio: Return per unit of downside risk	2.55	2.07	+0.48
Omega ratio: Gain probability vs. loss probability	1.33	1.26	+0.07
Calmar ratio: Return relative to maximum drawdown	2.71	2.43	+0.28
Martin ratio: Return relative to average drawdown	11.68	7.72	+3.97

VTI vs. QQQ - Sharpe Ratio Comparison

The current VTI Sharpe Ratio is 1.85, which is comparable to the QQQ Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of VTI 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

VTI vs. QQQ - Drawdown Comparison

The maximum VTI drawdown since its inception was -55.45%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for VTI and QQQ.

Drawdown Indicators

	VTI	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-55.45%	-82.97%	+27.52%
Max Drawdown (1Y) Largest decline over 1 year	-8.92%	-11.96%	+3.04%
Max Drawdown (3Y) Largest decline over 3 years	-19.30%	-22.77%	+3.47%
Max Drawdown (5Y) Largest decline over 5 years	-25.36%	-35.12%	+9.76%
Max Drawdown (10Y) Largest decline over 10 years	-35.00%	-35.12%	+0.12%
Current Drawdown Current decline from peak	0.00%	-2.88%	+2.88%
Average Drawdown Average peak-to-trough decline	-7.98%	-32.61%	+24.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.07%	3.76%	-1.69%

Volatility

VTI vs. QQQ - Volatility Comparison

The current volatility for Vanguard Total Stock Market ETF (VTI) is 4.13%, while Invesco QQQ ETF (QQQ) has a volatility of 7.63%. This indicates that VTI 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

	VTI	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.13%	7.63%	-3.50%
Volatility (6M) Calculated over the trailing 6-month period	10.47%	16.43%	-5.96%
Volatility (1Y) Calculated over the trailing 1-year period	13.18%	19.61%	-6.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.54%	22.97%	-5.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.32%	22.54%	-4.22%

VTI vs. QQQ - Expense Ratio Comparison

VTI has a 0.03% 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

VTI vs. QQQ - Dividend Comparison

VTI's dividend yield for the trailing twelve months is around 1.02%, more than QQQ's 0.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQ Invesco QQQ ETF	0.42%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%
VTI Vanguard Total Stock Market ETF	1.02%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both VTI and QQQ in my portfolio?

With a correlation of 0.92, VTI and QQQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VTI or QQQ?

QQQ has higher volatility (7.63%) compared to VTI (4.13%). In terms of maximum drawdown, VTI dropped -55.45% vs QQQ's -82.97%.

Which ETF is better, VTI or QQQ?

On 10-year performance, QQQ leads with 20.86% vs 14.87% for VTI. On fees, VTI is cheaper at 0.03% per year. On volatility, VTI has been the lower-risk option at 4.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTI or QQQ?

Over the 10-year period, QQQ has performed better with a 20.86% return vs 14.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTI or QQQ?

VTI is cheaper with a 0.03% expense ratio, compared with 0.18% for QQQ.

Which ETF pays a higher dividend yield, VTI or QQQ?

VTI has the higher dividend yield at 1.02%, compared with 0.42% for QQQ.

What is the main difference between VTI and QQQ?

VTI is categorized as Large Cap Blend Equities, while QQQ is Nasdaq-100. VTI tracks CRSP US Total Market Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.03% for VTI and 0.18% for QQQ.

Which has better risk-adjusted returns?

VTI currently has the higher Sharpe Ratio (1.85 vs 1.49), 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.