QQQvs VGT

Quick verdict

Invesco QQQ Trust (QQQ) and Vanguard Information Technology ETF (VGT) are often compared by investors building a core portfolio. Their holdings overlap by roughly 48.1% (high overlap), sharing 9 of their top positions. VGT is cheaper at 0.20% vs 0.10%, neither clearly pays more income, and QQQ has the stronger recent track record. The two are evenly matched; with this much overlap, holding both adds cost without much extra diversification.

Holdings overlap

QQQ and VGT overlap by about 48.1% across their largest holdings, which is high. Holding both would largely duplicate exposure — you would pay two expense ratios for similar returns. Most investors should pick one.

2-year relative performance

At-a-glance comparison

Cost

VGT is the lower-cost fund. QQQ charges an expense ratio of 0.20% versus 0.10% for VGT. On a $10,000 position that is about $20 vs $10 per year — small, but it compounds over decades.

Income & yield

QQQ yields 0.6% and VGT yields 0.6%, so neither clearly is the stronger choice for income-focused investors. Higher yield can reflect a value or covered-call strategy rather than simply "more free money," so check the category: US Large-Cap Growth (Nasdaq-100) vs US Technology.

Performance

Over five years QQQ has returned 14.8% annualised against 16.4% for VGT; on a three-year basis it is 17.3% vs -0.0%. QQQ leads recently, though past performance does not predict future results and is heavily influenced by sector weightings.

Structure & diversification

QQQ holds about 84 positions (US Large-Cap Growth (Nasdaq-100), Invesco); VGT holds about 410 (US Technology, Vanguard). VGT is the more diversified by raw holding count, and AUM is 441.8B vs 94.5B — larger funds tend to be more liquid with tighter spreads.

Which ETF fits which investor

For the lowest cost, choose VGT. For the most income, QQQ. For growth exposure, QQQ. Given 48.1% overlap, holding both mainly makes sense if you specifically want to tilt toward one strategy — otherwise pick the single fund that matches your goal. This is a factual comparison, not advice.

• Lowest cost: VGT
• Most income: QQQ
• Growth exposure: QQQ

Frequently asked questions

How much do QQQ and VGT overlap?

Their largest holdings overlap by approximately 48.1% (high), sharing 9 top positions. Owning both largely duplicates exposure.

Which is cheaper, QQQ or VGT?

VGT is cheaper, with an expense ratio of 0.10% versus 0.20%.

Which has the higher dividend yield?

QQQ yields 0.6% and VGT yields 0.6%, so neither clearly pays more income.

Should I own both QQQ and VGT?

With 48.1% overlap, owning both mostly duplicates your exposure while paying two expense ratios — most investors pick one.

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