VTSMX vs. QQQ
Compare and contrast key facts about Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) and Invesco QQQ (QQQ).
VTSMX is managed by Vanguard. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VTSMX or QQQ.
Performance
VTSMX vs. QQQ - Performance Comparison
Returns By Period
In the year-to-date period, VTSMX achieves a 23.98% return, which is significantly higher than QQQ's 22.63% return. Over the past 10 years, VTSMX has underperformed QQQ with an annualized return of 12.46%, while QQQ has yielded a comparatively higher 18.02% annualized return.
VTSMX
23.98%
0.90%
11.70%
32.37%
14.71%
12.46%
QQQ
22.63%
1.12%
10.25%
30.41%
20.71%
18.02%
Key characteristics
| VTSMX | QQQ | |
|---|---|---|
| Sharpe Ratio | 2.60 | 1.75 |
| Sortino Ratio | 3.48 | 2.34 |
| Omega Ratio | 1.48 | 1.32 |
| Calmar Ratio | 3.82 | 2.25 |
| Martin Ratio | 16.64 | 8.17 |
| Ulcer Index | 1.97% | 3.73% |
| Daily Std Dev | 12.58% | 17.44% |
| Max Drawdown | -55.38% | -82.98% |
| Current Drawdown | -2.01% | -2.75% |
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VTSMX vs. QQQ - Expense Ratio Comparison
VTSMX has a 0.14% expense ratio, which is lower than QQQ's 0.20% 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%.
Correlation
The correlation between VTSMX and QQQ is 0.87, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
VTSMX vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) and Invesco QQQ (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.
Dividends
VTSMX vs. QQQ - Dividend Comparison
VTSMX's dividend yield for the trailing twelve months is around 1.18%, more than QQQ's 0.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTSMX Vanguard Total Stock Market Index Fund Investor Shares | 1.18% | 1.34% | 1.54% | 1.11% | 1.33% | 1.67% | 1.92% | 1.61% | 1.83% | 1.86% | 1.65% | 1.64% |
QQQ Invesco QQQ | 0.61% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
VTSMX vs. QQQ - Drawdown Comparison
The maximum VTSMX drawdown since its inception was -55.38%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for VTSMX and QQQ. For additional features, visit the drawdowns tool.
Volatility
VTSMX vs. QQQ - Volatility Comparison
The current volatility for Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) is 4.25%, while Invesco QQQ (QQQ) has a volatility of 5.62%. This indicates that VTSMX 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.