QQQ vs VTWG
Invesco QQQ Trust, Series 1 vs Vanguard Russell 2000 Growth ETF
Which is better, QQQ or VTWG?
Large Cap Growth against Small Cap Growth.
VTWG has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. VTWG is less concentrated, with 6.0% of the fund in its ten largest positions against 46.7%.
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 | VTWG |
|---|---|---|
| Expense Ratio | 0.18% | 0.06%Best |
| AUM | $506.1B | $1.4B |
| Dividend Yield | 0.42% | 0.67% |
| Holdings | 321 | 1,128 |
| YTD Return | +19.30%Best | +5.21% |
| 1Y Return | +22.47%Best | +4.43% |
| 3Y Return (annualized) | +26.18%Best | +17.04% |
| 5Y Return (annualized) | +15.42%Best | +3.38% |
| Volatility (annualized) | 17.2%Best | 20.0% |
| Max Drawdown | -35.1%Best | -42.1% |
| $10,000 over 5 years | $20,484Best | $11,808 |
| Top 10 Weight | 46.7% | 6.0%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Small Cap Growth |
| Inception | Mar 10, 1999 | Sep 20, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2010 to Oct 14, 2026 (16.1 years).
QQQ vs VTWG 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 covers the 16.1 years both funds cover.
QQQ vs VTWG Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Vanguard Russell 2000 Growth ETF (VTWG) is an ETF from Vanguard (US). Over the past year QQQ returned +22.47% while VTWG returned +4.43%. Year to date, QQQ is up 19.30% versus a gain of 5.21% for VTWG.
Over three years, QQQ compounded at +26.18% per year against +17.04% for VTWG; over five years the annualized figures are +15.42% and +3.38% respectively. Across the full 16-year window we track, QQQ has the edge at +18.60% annualized vs +10.53%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWG has been the more volatile fund, with annualized monthly volatility of 20.0% compared with 17.2% for QQQ. 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 -42.1% for VTWG. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VTWG charges 0.06%. On a $10,000 position that is $18 vs $6 annually, a gap of $12 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 0.67% for VTWG.
Holdings Overlap
0.6% of QQQ's money is in holdings VTWG also owns. 0.2% of VTWG's money is in holdings QQQ also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 101 positions we hold weights for in QQQ and 1,129 in VTWG, against full books of 321 and 1,128.
What only one of them owns
Our book lists 916 positions for VTWG that do not appear in our book for QQQ (94.0% of the fund), and 92 for QQQ that do not appear in VTWG (95.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VTWG | Difference |
|---|---|---|---|
| FTNTFortinet Inc. | 0.55% | 0.16% | 0.39% |
You are not choosing between two funds in isolation.
Whichever of QQQ and VTWG 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 VTWG?
QQQ has an expense ratio of 0.18% while VTWG charges 0.06%. VTWG is the cheaper option, by $12 a year on a $10,000 investment.
Which performed better, QQQ or VTWG?
Over the past year QQQ returned +22.47% vs +4.43% for VTWG, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +18.60% vs +10.53% for VTWG. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VTWG?
VTWG has been the more volatile fund at 20.0% annualized versus 17.2% for QQQ. Worst drawdown: QQQ -35.1% vs VTWG -42.1%.
Should I hold both QQQ and VTWG?
QQQ and VTWG have a monthly-return correlation of 0.78, 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 VTWG?
QQQ yields 0.42% while VTWG yields 0.67%, so VTWG currently pays the higher dividend yield.
Is VTWG better than QQQ?
VTWG has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. VTWG is less concentrated, with 6.0% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.