VUG vs. QQQ

Last updated Apr 16, 2026

VUG (Vanguard Growth ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds — VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, VUG returned 17.24%/yr vs 20.00%/yr for QQQ. Their correlation of 0.95 suggests significant overlap in exposure. VUG charges 0.03%/yr vs 0.18%/yr for QQQ.

Performance

VUG vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Growth ETF (VUG) 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, VUG achieves a -0.34% return, which is significantly lower than QQQ's 3.89% return. Over the past 10 years, VUG has underperformed QQQ with an annualized return of 17.24%, while QQQ has yielded a comparatively higher 20.00% annualized return.

VUG

• 1D: 1.88%
• 1M: 6.72%
• YTD: -0.34%
• 6M: 1.72%
• 1Y: 34.65%
• 3Y*: 25.61%
• 5Y*: 12.54%
• 10Y*: 17.24%

QQQ

• 1D: 1.40%
• 1M: 6.30%
• YTD: 3.89%
• 6M: 6.11%
• 1Y: 39.85%
• 3Y*: 26.75%
• 5Y*: 13.94%
• 10Y*: 20.00%

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

VUG vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VUG Vanguard Growth ETF	-0.34%	19.40%	32.69%	46.83%	-33.16%	27.35%	40.25%	37.03%	-3.32%	27.72%
QQQ Invesco QQQ ETF	3.89%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between VUG and QQQ is 0.97 — these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.95

The correlation between VUG and QQQ has been stable across timeframes, ranging from 0.95 to 0.98 — a consistent structural relationship.

Return for Risk

VUG vs. QQQ — Risk / Return Rank

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

VUG

VUG Risk / Return Rank: 41
VUG Sharpe Ratio Rank: 50
VUG Sortino Ratio Rank: 47
VUG Omega Ratio Rank: 47
VUG Calmar Ratio Rank: 29
VUG Martin Ratio Rank: 31

QQQ

QQQ Risk / Return Rank: 59
QQQ Sharpe Ratio Rank: 65
QQQ Sortino Ratio Rank: 61
QQQ Omega Ratio Rank: 62
QQQ Calmar Ratio Rank: 53
QQQ Martin Ratio Rank: 56

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.

VUG vs. QQQ - Risk-Adjusted Trends Comparison

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

	VUG	QQQ	Difference
Sharpe ratio Return per unit of total volatility	2.01	2.36	-0.34
Sortino ratio Return per unit of downside risk	2.74	3.14	-0.40
Omega ratio Gain probability vs. loss probability	1.36	1.42	-0.06
Calmar ratio Return relative to maximum drawdown	2.14	3.42	-1.28
Martin ratio Return relative to average drawdown	7.50	13.03	-5.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VUG vs. QQQ - Sharpe Ratio Comparison

The current VUG Sharpe Ratio is 2.01, which is comparable to the QQQ Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of VUG 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

	VUG	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.01	2.36	-0.34
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.57	0.63	-0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.90	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.39	+0.21

Drawdowns

VUG vs. QQQ - Drawdown Comparison

The maximum VUG drawdown since its inception was -50.68%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for VUG and QQQ.

Drawdown Indicators

	VUG	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-50.68%	-82.97%	+32.29%
Max Drawdown (1Y) Largest decline over 1 year	-16.53%	-11.96%	-4.57%
Max Drawdown (5Y) Largest decline over 5 years	-35.61%	-35.12%	-0.49%
Max Drawdown (10Y) Largest decline over 10 years	-35.61%	-35.12%	-0.49%
Current Drawdown Current decline from peak	-3.48%	0.00%	-3.48%
Average Drawdown Average peak-to-trough decline	-7.13%	-32.95%	+25.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.72%	3.14%	+1.58%

Volatility

VUG vs. QQQ - Volatility Comparison

Vanguard Growth ETF (VUG) has a higher volatility of 7.49% compared to Invesco QQQ ETF (QQQ) at 6.86%. This indicates that VUG'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

	VUG	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.49%	6.86%	+0.63%
Volatility (6M) Calculated over the trailing 6-month period	12.70%	12.66%	+0.04%
Volatility (1Y) Calculated over the trailing 1-year period	17.39%	17.07%	+0.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.26%	22.41%	-0.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.41%	22.26%	-0.85%

VUG vs. QQQ - Expense Ratio Comparison

VUG 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

VUG vs. QQQ - Dividend Comparison

VUG's dividend yield for the trailing twelve months is around 0.41%, less than QQQ's 0.44% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VUG Vanguard Growth ETF	0.41%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%
QQQ Invesco QQQ ETF	0.44%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%