QQQ vs VBND
Invesco QQQ Trust, Series 1 vs Vident US Bond Strategy ETF
Which is better, QQQ or VBND?
QQQ has been ahead.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | VBND |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.41% |
| AUM | $506.1B | $518M |
| Dividend Yield | 0.42% | 4.58% |
| Holdings | 321 | 181 |
| YTD Return | +19.30%Best | -1.93% |
| 1Y Return | +22.47%Best | -1.79% |
| 3Y Return (annualized) | +26.18%Best | +4.69% |
| 5Y Return (annualized) | +15.42%Best | -0.36% |
| Volatility (annualized) | 18.6% | 5.4%Best |
| Max Drawdown | -35.1% | -19.0%Best |
| $10,000 over 5 years | $20,484Best | $9,821 |
| Fund Family | Invesco (US) | Vident Financial |
| Category | Equity | Fixed Income |
| Style | Large Cap Growth | - |
| Inception | Mar 10, 1999 | Oct 15, 2014 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 16, 2014 to Oct 14, 2026 (12 years).
QQQ vs VBND growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
QQQ vs VBND Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vident US Bond Strategy ETF (VBND) is an ETF from Vident Financial. Over the past year QQQ returned +22.47% while VBND returned -1.79%. Year to date, QQQ is up 19.30% versus a loss of 1.93% for VBND.
Over three years, QQQ compounded at +26.18% per year against +4.69% for VBND; over five years the annualized figures are +15.42% and -0.36% respectively. Across the full 12-year window we track, QQQ has the edge at +19.19% annualized vs +0.14%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.6% compared with 5.4% for VBND. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -35.1% for QQQ and -19.0% for VBND. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.46. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while VBND charges 0.41%. On a $10,000 position that is $18 vs $41 annually, a gap of $23 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 4.58% for VBND.
Holdings Overlap
We hold position weights for 101 holdings in QQQ and 141 in VBND, totalling 99.6% and 90.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 101 positions we hold weights for in QQQ and 141 in VBND, against full books of 321 and 181.
You are not choosing between two funds in isolation.
Whichever of QQQ and VBND you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or VBND?
QQQ has an expense ratio of 0.18% while VBND charges 0.41%. QQQ is the cheaper option, by $23 a year on a $10,000 investment.
Which performed better, QQQ or VBND?
Over the past year QQQ returned +22.47% vs -1.79% for VBND, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), QQQ annualized +19.19% vs +0.14% for VBND. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VBND?
QQQ has been the more volatile fund at 18.6% annualized versus 5.4% for VBND. Worst drawdown: QQQ -35.1% vs VBND -19.0%.
Should I hold both QQQ and VBND?
QQQ and VBND have a monthly-return correlation of 0.46, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or VBND?
QQQ yields 0.42% while VBND yields 4.58%, so VBND currently pays the higher dividend yield.
Is VBND better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.