VUG vs. QQQ
Compare and contrast key facts about Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ).
VUG and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VUG is a passively managed fund by Vanguard that tracks the performance of the CRSP U.S. Large Cap Growth Index. It was launched on Jan 26, 2004. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both VUG and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VUG or QQQ.
Key characteristics
| VUG | QQQ | |
|---|---|---|
| YTD Return | 27.96% | 22.66% |
| 1Y Return | 49.80% | 44.21% |
| 3Y Return (Ann) | 8.74% | 9.77% |
| 5Y Return (Ann) | 19.22% | 21.34% |
| 10Y Return (Ann) | 15.61% | 18.30% |
| Sharpe Ratio | 3.13 | 2.67 |
| Sortino Ratio | 3.94 | 3.42 |
| Omega Ratio | 1.56 | 1.47 |
| Calmar Ratio | 3.00 | 3.38 |
| Martin Ratio | 15.90 | 12.40 |
| Ulcer Index | 3.26% | 3.70% |
| Daily Std Dev | 16.58% | 17.17% |
| Max Drawdown | -50.68% | -82.98% |
| Current Drawdown | 0.00% | -0.42% |
Correlation
The correlation between VUG and QQQ is 0.95, 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.
Performance
VUG vs. QQQ - Performance Comparison
In the year-to-date period, VUG achieves a 27.96% return, which is significantly higher than QQQ's 22.66% return. Over the past 10 years, VUG has underperformed QQQ with an annualized return of 15.61%, while QQQ has yielded a comparatively higher 18.30% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VUG vs. QQQ - Expense Ratio Comparison
VUG has a 0.04% 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%.
Risk-Adjusted Performance
VUG vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Growth ETF (VUG) 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
VUG vs. QQQ - Dividend Comparison
VUG's dividend yield for the trailing twelve months is around 0.50%, less than QQQ's 0.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VUG Vanguard Growth ETF | 0.50% | 0.58% | 0.70% | 0.48% | 0.66% | 0.95% | 1.32% | 1.14% | 1.39% | 1.30% | 1.21% | 1.19% |
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% | 1.01% |
Drawdowns
VUG vs. QQQ - Drawdown Comparison
The maximum VUG drawdown since its inception was -50.68%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for VUG and QQQ. For additional features, visit the drawdowns tool.
Volatility
VUG vs. QQQ - Volatility Comparison
The current volatility for Vanguard Growth ETF (VUG) is 3.65%, while Invesco QQQ (QQQ) has a volatility of 3.89%. This indicates that VUG 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.