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VOO vs QQQ

Vanguard S&P 500 ETF vs Invesco QQQ Trust

The short answer: VOO is the diversified S&P 500. QQQ is concentrated in 100 large Nasdaq names — much higher tech weighting and higher volatility.

Metric
VOO
QQQ
Issuer
Vanguard
Invesco
Benchmark
S&P 500 Index
Nasdaq-100 Index
Inception
Sep 7, 2010
Mar 10, 1999
Expense Ratio(lower is better)
300 bps
1800 bps
AUM(higher = more liquid)
$1.60T
$440.3B
Dividend Yield (TTM)
1.08%
0.42%
Dividend Frequency
Quarterly
Quarterly
Beta (vs S&P 500)(1 = market)
1.00
1.18
1-Year Return
26.66%
37.67%
3-Year Return (annualized)
22.51%
27.65%
5-Year Return (annualized)
13.53%
17.02%
10-Year Return (annualized)
15.33%
21.34%
Data as of May 9, 2026. Returns annualized; past performance is not indicative of future results.

Total Return

YTDVOO: 6.91% · QQQ: 14.51%
1YVOO: 26.66% · QQQ: 37.67%
3Y ann.VOO: 22.51% · QQQ: 27.65%
5Y ann.VOO: 13.53% · QQQ: 17.02%
10Y ann.VOO: 15.33% · QQQ: 21.34%

Which should you pick?

Choose VOO

Pick VOO as your core long-term holding. Lower expense ratio (0.03% vs 0.20%), broader diversification across 11 sectors, and lower volatility make it the better one-fund-portfolio option.

Choose QQQ

Pick QQQ if you want a deliberate growth/tech tilt. Its 50%+ tech weighting has driven outsized returns during the past decade — but expect bigger drawdowns in tech corrections.

Either is fine if…

Many investors hold both: VOO as the foundation (e.g., 70% of equity), QQQ as a satellite tech tilt (e.g., 20–30%). Just don't double-count: about 40% of QQQ's holdings are already in VOO.

Holdings & sectors

VOO – Top Holdings

  • AAPLApple Inc7.1%
  • MSFTMicrosoft Corp6.6%
  • NVDANVIDIA Corp6.2%
  • AMZNAmazon.com Inc3.8%
  • GOOGLAlphabet Inc Class A2.2%

QQQ – Top Holdings

  • AAPLApple Inc8.9%
  • MSFTMicrosoft Corp8.2%
  • NVDANVIDIA Corp7.8%
  • AMZNAmazon.com Inc5.2%
  • AVGOBroadcom Inc4.6%

Sector Breakdown

Technology
VOO
30.0%
QQQ
50.0%
Communication
VOO
9.0%
QQQ
16.0%
Consumer Discretionary
VOO
10.0%
QQQ
13.0%
Healthcare
VOO
11.0%
QQQ
6.0%
Industrials
VOO
9.0%
QQQ
5.0%
Financials
VOO
13.0%
QQQ
0.5%
Consumer Staples
VOO
6.0%
QQQ
5.0%
Energy
VOO
4.0%
QQQ
0.5%
Utilities
VOO
2.5%
QQQ
1.2%
Materials
VOO
2.2%
QQQ
0.5%
Real Estate
VOO
2.3%
QQQ
0.3%

At a glance

Expense ratio
VOO300 bps
QQQ1800 bps
AUM
VOO$1.60T
QQQ$440.3B
Dividend yield
VOO1.08%
QQQ0.42%
5Y return (ann.)
VOO13.53%
QQQ17.02%

VOO vs QQQ – FAQ

Is QQQ riskier than VOO?
Yes. QQQ's beta is around 1.16 vs VOO's 1.00, and its sector concentration in tech means it can fall 15–20% more than VOO during tech-led downturns (2022 was a recent example).
Has QQQ outperformed VOO?
Over the past 10–15 years, yes — by a meaningful margin. But QQQ also dropped further in 2000, 2008, and 2022. Outperformance is real but path-dependent on tech leadership continuing.
Why is QQQ's expense ratio higher?
QQQ is structured as a unit investment trust and Invesco doesn't compete primarily on cost. If you want the same exposure for less, look at QQQM (0.15%) — same index, lower fee.
How much overlap is there between VOO and QQQ?
Roughly 40% by weight. The largest holdings — Apple, Microsoft, NVIDIA, Amazon, Alphabet, Meta — appear in both, but at very different weights.
Which is better for retirement?
VOO is generally the safer retirement core. QQQ can complement it but shouldn't replace it, because tech concentration introduces sequence-of-returns risk near retirement.

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