QQQ vs VUG: fees, holdings and returns
QQQ holds the 100 largest non-financial companies on the Nasdaq. VUG holds about 135 large US growth companies from every exchange. Both are led by the same tech giants, and VUG charges a lower fee. Over the same dates since January 2004, QQQ returned about 14.8% a year and VUG returned about 12.2% a year.
Written by the Tactfolio research team. Fund facts checked October 16, 2026. Prices through October 20, 2026.
Key points
- VUG costs less: 0.03% a year against 0.18%.
- QQQ started trading in March 1999. VUG started in January 2004.
- Worst drops since 2004: QQQ −53.4%, VUG −50.7%.
- Daily correlation: 0.96 (1 means they always move together).
What is the difference between QQQ and VUG?#
QQQ picks by exchange and size, VUG by growth measures. So VUG holds growth companies listed on the New York Stock Exchange that QQQ cannot, and QQQ holds large Nasdaq companies that are not growth stocks. Their top holdings are much the same, which is why they often move together.
| Fact | QQQ | VUG |
|---|---|---|
| Full name | Invesco QQQ Trust, Series 1 | Vanguard Morningstar Growth ETF |
| Issuer | Invesco | Vanguard |
| Expense ratio | 0.18% a year | 0.03% a year |
| Started trading | March 10, 1999 | January 26, 2004 |
| Tracks | Nasdaq-100 Index | Morningstar US Large Cap Growth Index |
| Holdings | n/a | 135 holdings as of September 30, 2026 |
| Type | US stocks, ETF | US stocks, ETF |
Fund facts checked on the Invesco QQQ page and the Vanguard VUG page.
Is QQQ or VUG cheaper?#
VUG costs less: 0.03% a year against 0.18%. On $10,000, that is about $18 a year for QQQ and $3 for VUG. The fund takes its fee out of its own value a little each day, so you never get a bill.
QQQ vs VUG performance over the same dates#
Both funds are measured from January 2004 to October 2026, the dates both traded. QQQ returned about 14.8% a year and VUG returned about 12.2% a year. QQQ came out ahead over this period, which does not mean it will again.
| Measure | QQQ | VUG |
|---|---|---|
| $10,000 grew to | $229,891 | $135,515 |
| Total return | 2,199% | 1,255% |
| Return per year (CAGR) | 14.8% | 12.2% |
| Worst drop from a high | −53.4% | −50.7% |
| Volatility (how much it swings) | 21.4% | 20.0% |
| Last 12 months | 17.9% | 10.2% |
| Last 3 years, per year | 27.2% | 26.0% |
| Last 5 years, per year | 14.5% | 12.3% |
| Last 10 years, per year | 20.6% | 17.9% |
Prices through October 20, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.
QQQ and VUG returns by year#
| Year | QQQ | VUG |
|---|---|---|
| 2026 (part of the year) | 17.2% | 9.4% |
| 2025 | 20.8% | 19.4% |
| 2024 | 25.6% | 32.7% |
| 2023 | 54.9% | 46.8% |
| 2022 | −32.6% | −33.2% |
| 2021 | 27.4% | 27.4% |
| 2020 | 48.4% | 40.3% |
| 2019 | 39.0% | 37.0% |
| 2018 | −0.1% | −3.3% |
| 2017 | 32.7% | 27.7% |
| 2016 | 7.1% | 6.3% |
| 2015 | 9.4% | 3.2% |
| 2014 | 19.2% | 13.6% |
| 2013 | 36.6% | 32.5% |
| 2012 | 18.1% | 17.0% |
| 2011 | 3.5% | 1.8% |
| 2010 | 20.1% | 17.2% |
| 2009 | 54.7% | 36.1% |
| 2008 | −41.7% | −38.0% |
| 2007 | 19.0% | 12.5% |
| 2006 | 7.1% | 9.2% |
| 2005 | 1.6% | 5.0% |
| 2004 (part of the year) | 8.7% | 5.0% |
Which fell further in bad times?#
A drawdown is how far a fund falls from its last high point. QQQ’s worst fall was −53.4%, from October 31, 2007 to November 20, 2008. It got back to that high on December 8, 2010.
VUG’s worst fall was −50.7%, from October 31, 2007 to March 9, 2009. It got back to that high on February 8, 2011.
Their daily moves had a correlation of 0.96. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.
Why people choose QQQ or VUG#
QQQ. People who want the Nasdaq-100 itself, or trade it and its options, tend to pick QQQ.
VUG. People who want large growth companies from any exchange at a low fee tend to pick VUG.
Strategies that hold QQQ or VUG#
These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.
- Bold Asset Allocation (BAA), by Wouter Keller, 2022 (holds QQQ)
- Defensive Asset Allocation (DAA), by Wouter Keller and JW Keuning, 2018 (holds QQQ)
- Protective Asset Allocation (PAA), by Wouter Keller and JW Keuning, 2016 (holds QQQ)
- Vigilant Asset Allocation G12 (VAA-G12), by Wouter Keller and JW Keuning, 2017 (holds QQQ)
- Bold Asset Allocation G4 (BAA aggressive), by Wouter Keller, 2022 (holds QQQ)
- Quint Switching Filtered (Lewis Glenn’s QSF), by Lewis A. Glenn, 2018 (holds QQQ)
- Lethargic Asset Allocation (Keller’s LAA), by Wouter J. Keller, 2019 (holds QQQ)
- Resilient Asset Allocation (Keller’s RAA), by Wouter J. Keller, 2020 (holds QQQ)
- Pragmatic Asset Allocation (Quantpedia’s PAA), by Radovan Vojtko and Juliána Javorská (Quantpedia), 2024 (holds QQQ)
- Papa Bear Portfolio (Muscular Portfolios), by Brian Livingston, 2018 (holds VUG)
Other funds like QQQ and VUG#
Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: QQQ alternatives and VUG alternatives.
Test a mix of QQQ and VUG#
Open the builder, add QQQ and VUG, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for QQQ and VUG, or see more ETF comparisons.
The details#
Both funds use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund’s first day, so neither gets a head start. Correlation uses daily returns over the same days. Read what a backtest simulates for more on these measures.
Common questions#
Do QQQ and VUG overlap?#
Heavily at the top: the largest holdings of both are the same tech and growth giants. Further down they differ.
Which is more spread out, QQQ or VUG?#
Both are concentrated in a handful of giant companies. VUG holds a few more companies and draws from every exchange.
Which is cheaper, QQQ or VUG?#
VUG costs less: 0.03% a year against 0.18%. Fees come from each issuer and were checked on October 16, 2026.
Which did better, QQQ or VUG?#
From January 2004 to October 2026, QQQ returned about 14.8% a year and VUG returned about 12.2% a year, with dividends reinvested. Their worst drops were −53.4% and −50.7%. Past returns do not tell you what comes next.