VGT vs QQQ: Head-to-Head Comparison
VGT vs QQQ: Vanguard Information Technology ETF has an expense ratio of 0.10% while Invesco QQQ Trust charges 0.20%. VGT holds 316 securities vs QQQ's 101. 5-year returns: 21.80% vs 19.50%.
Last updated: April 2026
Tech
Quick Verdict
QQQ edges out VGT with a stronger Beginner Suitability Score (8.5 vs 8). It offers better overall characteristics for new investors.
Side-by-Side Comparison
| Metric | VGT | QQQ |
|---|---|---|
| Expense Ratio | 0.10% | 0.20% |
| AUM | $78.0B | $310.0B |
| Dividend Yield | 0.70% | 0.60% |
| Holdings | 316 | 101 |
| 1-Year Return | 31.20% | 29.80% |
| 5-Year Return (Ann.) | 21.80% | 19.50% |
| 10-Year Return (Ann.) | 20.80% | 18.50% |
| Beta | 1.25 | 1.15 |
| P/E Ratio | 34.8 | 33.2 |
VGT 5-year annualized return is 21.80% compared to QQQ's 19.50%. Over 10 years, VGT returned 20.80% vs QQQ's 18.50%.
View data table
| Period | VGT Return | QQQ Return |
|---|---|---|
| YTD | 3.80% | 3.50% |
| 1 Year | 31.20% | 29.80% |
| 3 Year | 14.50% | 13.20% |
| 5 Year | 21.80% | 19.50% |
| 10 Year | 20.80% | 18.50% |
Key Differences Between VGT and QQQ
VGT (Vanguard Information Technology ETF) is a technology sector fund managed by Vanguard. VGT invests exclusively in U.S. information technology companies, from mega-cap giants like Apple and Microsoft to smaller software and semiconductor firms. It provides purer tech sector exposure than QQQ since it excludes non-tech companies like Amazon and Tesla. Beginners drawn to technology investing should understand that VGT offers concentrated sector exposure, which amplifies both gains in tech bull markets and losses during tech selloffs.
QQQ (Invesco QQQ Trust) is a u.s. large-cap growth fund managed by Invesco. QQQ tracks the Nasdaq-100 index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It is heavily tilted toward technology and growth stocks, making it a favorite for investors who want concentrated exposure to the tech sector. Beginners should understand that QQQ can deliver higher returns than the S&P 500 in good years but also experiences sharper declines during downturns.
The most notable differences are in fees (0.10% vs 0.20%), number of holdings (316 vs 101), and 5-year returns (21.80% vs 19.50%).
VGT vs QQQ multi-factor comparison: VGT has a 0.10% expense ratio, 21.80% 5-year return, 316 holdings, 1.25 beta, and 0.70% yield. QQQ has 0.20% expense ratio, 19.50% 5-year return, 101 holdings, 1.15 beta, and 0.60% yield.
View data table
| Metric | VGT | QQQ |
|---|---|---|
| Expense Ratio | 0.10% | 0.20% |
| 5-Year Return | 21.80% | 19.50% |
| Holdings | 316 | 101 |
| Beta | 1.25 | 1.15 |
| Dividend Yield | 0.70% | 0.60% |
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Holdings Overlap Analysis
25%
Holdings Overlap
VGT and QQQ share only 25% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
VGT and QQQ share 25% of their top holdings (low overlap). VGT has 316 total holdings and QQQ has 101. Common holdings include AAPL, MSFT, NVDA.
View data table
| Metric | VGT | QQQ |
|---|---|---|
| Overlap | 25% | 25% |
| Unique Holdings | 75% | 75% |
| Total Holdings | 316 | 101 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
VGT
Fee cost: $856
QQQ
Fee cost: $1,696
Over 20 years, the fee difference amounts to $840 on a $10,000 investment. VGT saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, VGT (0.10% fee) grows to $45,754 while QQQ (0.20% fee) grows to $44,913. The fee difference costs $841.
View data table
| Year | VGT Value | QQQ Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,625 | $14,558 |
| 10 | $21,390 | $21,193 |
| 15 | $31,284 | $30,852 |
| 20 | $45,754 | $44,913 |
Which One Should a Beginner Choose?
Choose VGT if: You want investors with high risk tolerance who want concentrated technology sector exposure, those who believe the tech sector will continue to outperform the broader market, long-term growth investors willing to accept higher volatility for potentially higher returns. It's managed by Vanguard with an expense ratio of 0.10%.
Choose QQQ if: You want growth-oriented investors with a long time horizon and higher risk tolerance, investors who want concentrated exposure to technology and innovation leaders, younger investors who can tolerate short-term volatility for potentially higher long-term returns. It's managed by Invesco with an expense ratio of 0.20%.
Can You Own Both VGT and QQQ?
Absolutely! With only 25% overlap, VGT and QQQ complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy VGT or QQQ?▾
QQQ edges out VGT with a stronger Beginner Suitability Score (8.5 vs 8). It offers better overall characteristics for new investors. However, both are solid options. VGT is best for investors who want investors with high risk tolerance who want concentrated technology sector exposure, while QQQ is better suited for growth-oriented investors with a long time horizon and higher risk tolerance.
What is the difference between VGT and QQQ?▾
VGT (Vanguard Information Technology ETF) tracks technology sector investments with 316 holdings and a 0.10% expense ratio. QQQ (Invesco QQQ Trust) focuses on u.s. large-cap growth with 101 holdings at 0.20%. Their top holdings overlap by 25%.
Can I own both VGT and QQQ?▾
Yes! With only 25% holdings overlap, VGT and QQQ complement each other well. Owning both gives you broader diversification.