The Invesco QQQ is one the largest and most popular ETFs on the market. That being said, there are plenty of similar ETFs available that compete against the QQQ for investor money. This comparison of QQQ vs other ETFs highlights the similarities and differences between some of the more well-known QQQ alternatives.
The chart below illustrates the 3-year performance of the QQQ versus other notable funds such as the SPY, VOO, VTI, and VGT.
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QQQ vs VOO and SPY
VOO and SPY both track the performance of the S&P 500 Index. VOO is managed by Vanguard and SPY is managed by State Street Global Advisors. The SPY currently has a larger AUM of $385B vs the VOO with $283B AUM.
QQQ Similarities
- The top 4 holdings of each fund include Apple, Microsoft, Amazon and Google.
- Each fund features technology as their largest sector representation.
- Both the Nasdaq 100 and S&P 500 are market-cap weighted indexes.
- The expense fee of each fund is under 0.25% with VOO the cheapest at 0.03%, SPY at 0.09%, and QQQ has the highest expense fee at 0.20%.
QQQ Differences
- The QQQ is comprised of 48% technology stocks vs 24% in SPY/VOO.
- Only 0.78% of the QQQ holdings are from the financials sector vs 14% in SPY/VOO.
- The top 10 stocks in the QQQ represent over 50% of total assets vs 25% for the VOO and SPY.
- The QQQ only includes stocks listed on the NASDAQ stock exchange while the S&P 500 also includes stocks from the NYSE.
- The risk profile of VOO and SPY is considered lower than the QQQ due to a wider representation of all stock sectors, less concentration in Top 10 holdings, and a larger number of individual holdings (505 vs 102).
Performance
| QQQ | SPY | VOO | ||||
|---|---|---|---|---|---|---|
| YTD Price Performance | 16.37% | 8.57% | 8.59% | |||
| 1Y Price Performance | -12.74% | -7.17% | -7.21% | |||
| 3 Year Price Performance | 35.20% | 24.98% | 24.95% | |||
| 5 Year Price Performance | 93.42% | 55.11% | 55.13% | |||
| 10 Year Price Performance | 362.36% | 175.03% | 175.94% |
QQQ vs VTI
VTI is the the ticker symbol for the Vanguard Total Stock Market ETF, which tracks the performance of the CRSP US Total Market Index. VTI invests only in United States corporations, but it covers all sectors and market cap levels.
QQQ Similarities
- The top 4 holdings for both funds are Apple, Microsoft, Amazon and Google.
- Both funds are market-cap weighted.
- Both funds have technology stocks as their largest sector representation.
- Because VTI holds shares of every investable U.S. stock, all 102 stocks in the QQQ are also represented in VTI.
QQQ Differences
- The VTI has a larger AUM of $285B vs QQQ at $163B.
- The VTI holds over 3900 stocks compared to 102 in the QQQ.
- The top 10 stocks in the QQQ represent over 50% of total assets vs 20% for the VTI.
- The QQQ has less than 15% combined exposure to the sectors of Consumer Defensive, Industrials, Utilities, Financials, Energy, and Real Estate. VTI has over 30% exposure across these same sectors.
Performance
| QQQ | VTI | |||||
|---|---|---|---|---|---|---|
| YTD Price Performance | 16.37% | 9.25% | ||||
| 1Y Price Performance | -12.74% | -7.37% | ||||
| 3 Year Price Performance | 35.20% | 23.81% | ||||
| 5 Year Price Performance | 93.42% | 52.08% | ||||
| 10 Year Price Performance | 362.36% | 168.10% |
QQQ vs VGT
VGT is a market-cap-weighted index of information technology companies. It is made up of stocks of large, mid-size, and small United States companies within the information technology sector.
QQQ Similarities
- Both funds feature Apple and Microsoft as their top 2 holdings.
- Both funds are market-cap weighted.
- Both funds have similar expense fees (.10% for VGT vs .20% for the QQQ) and dividend yields (.80% for VGT vs .70% for the QQQ).
QQQ Differences
- The VGT is led by a 90% weighting in the technology sector vs 48% for the QQQ.
- VGT holds stocks from both the NYSE and Nasdaq, including Visa and Salesforce as Top 10 holdings.
- The VGT does not have any holdings from the following sectors: Consumer Defensive, Utilities, Financials, Energy, or Real Estate.
Performance
| QQQ | VGT | |||||
|---|---|---|---|---|---|---|
| YTD Price Performance | 16.37% | 15.72% | ||||
| 1Y Price Performance | -12.74% | -10.73% | ||||
| 3 Year Price Performance | 35.20% | 39.49% | ||||
| 5 Year Price Performance | 93.42% | 120.52% | ||||
| 10 Year Price Performance | 362.36% | 418.53% |
QQQ vs ARKK
ARKK is an actively managed fund that invests in stocks their team defines as part of the disruptive innovation sectors. This includes fields such as genomics, artificial intelligence, automation, fintech and next generation internet companies.
QQQ Similarities
- Both funds hold a high concentration of their Top 10 holdings, with QQQ at 53% and ARKK at 63%.
- Both funds are led by the technology sector with ARKK holding 39% technology stocks vs 47% for the QQQ.
- Both funds have outperformed the S&P 500 over the past 3 and 5 year stretches.
QQQ Differences
- ARKK is an actively managed fund while the QQQ is rules-based, tracking the performance of the Nasdaq 100 index.
- ARKK's holdings can change arbitrarily while the QQQ reconstitutes only once per year.
- Actively managed funds typically have higher expense fees, and ARKK has the highest expense fee in this comparison at 0.75%.
- Of ARKK's Top 10 holdings, only Tesla and Zoom are included in the QQQ.
- ARKK contains only 30 stocks while the QQQ holds 100.
Performance
| QQQ | ARKK | |||||
|---|---|---|---|---|---|---|
| YTD Price Performance | 16.37% | 37.58% | ||||
| 1Y Price Performance | -12.74% | -40.70% | ||||
| 3 Year Price Performance | 35.20% | -23.03% | ||||
| 5 Year Price Performance | 93.42% | 7.88% |
QQQ vs QQQM
The QQQM is very similar to the QQQ in that it tracks the Nasdaq 100 index. However, the QQM offers a slightly lower expense fee of 0.15% vs 0.20% for QQQ. The fund was created to offer a lower cost option for long term investors.
QQQ Similarities
- Both funds seek to track the performance of the Nasdaq 100 index.
- Both funds have identical holdings.
QQQ Differences
- QQQM offers a lower expense fee and share price.
- QQQ is more popular with traders and options investors due to its higher volume and liquidity.
- The QQQM is designed for buy-and-hold investors who are willing to sacrifice liquidity and option plays for a lower expense fee.
Performance
| QQQ | QQQM | |||||
|---|---|---|---|---|---|---|
| YTD Price Performance | 16.37% | 16.40% | ||||
| 1Y Price Performance | -12.74% | -12.74% |
QQQ vs QQQJ
Despite being managed by Invesco and having a similar ticker symbol, The QQJ has several differences to the QQQ. The QQQJ is primarily a mid-cap fund, represented by the 101st to the 200th largest Nasdaq companies by market cap.
QQQ Similarities
- Both funds are rebalanced quarterly and reconstituted annually.
- Both funds are market-cap weighted.
- Both funds are rules-based and limited to 100 holdings.
QQQ Differences
- By design, QQJ holds smaller companies in terms of market cap.
- Stocks contained in QQQ are not represented in the QQQJ and vice versa.
- During the reconstitution process, it is possible for stocks to move from QQQ to QQQJ and vice versa.
- The QQQJ is a much smaller fund, with an $800M AUM vs the QQQ which has $163B AUM.
Performance
| QQQ | QQQJ | |||||
|---|---|---|---|---|---|---|
| YTD Price Performance | 16.37% | 11.92% | ||||
| 1Y Price Performance | -12.74% | -9.66% |