# QQQ vs VGT: fees, holdings and returns compared

> QQQ vs VGT: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

QQQ holds the 100 largest non-financial companies on the Nasdaq exchange, from tech, shopping, health and other industries. VGT holds only US information technology companies, about 320, from very large to small. VGT is more concentrated in one industry. Over the same dates since January 2004, QQQ returned about 14.8% a year and VGT returned about 14.8% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 16, 2026. Prices through October 16, 2026.

## Key points

- VGT costs less: 0.09% a year against 0.18%.
- QQQ started trading in March 1999. VGT started in January 2004.
- Worst drops since 2004: QQQ −53.4%, VGT −54.6%.
- Daily correlation: 0.97 (1 means they always move together).

## What is the difference between QQQ and VGT?

QQQ is picked by exchange and size. It includes companies like online stores and drug makers, as long as they are large and on Nasdaq. VGT is picked by industry. It holds only technology companies, but from every exchange and every size. Some well-known tech names sit in other industry groups, so they are in QQQ but not in VGT.

| Fact | QQQ | VGT |
| --- | --- | --- |
| Full name | Invesco QQQ Trust, Series 1 | Vanguard Information Technology ETF |
| Issuer | Invesco | Vanguard |
| Expense ratio | 0.18% a year | 0.09% a year |
| Started trading | March 10, 1999 | January 26, 2004 |
| Tracks | Nasdaq-100 Index | MSCI US Investable Market Information Technology 25/50 Index |
| Holdings | n/a | 318 holdings as of September 30, 2026 |
| Type | US stocks, ETF | US stocks, ETF |

Fund facts checked on the [Invesco QQQ page](https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=QQQ) and the [Vanguard VGT page](https://investor.vanguard.com/investment-products/etfs/profile/vgt).

## Is QQQ or VGT cheaper?

VGT costs less: 0.09% a year against 0.18%. On $10,000, that is about $18 a year for QQQ and $9 for VGT. The fund takes its fee out of its own value a little each day, so you never get a bill.

## QQQ vs VGT 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 VGT returned about 14.8% a year. VGT came out ahead over this period, which does not mean it will again.

| Measure | QQQ | VGT |
| --- | --- | --- |
| $10,000 grew to | $227,382 | $232,245 |
| Total return | 2,174% | 2,222% |
| Return per year (CAGR) | 14.8% | 14.8% |
| Worst drop from a high | −53.4% | −54.6% |
| Volatility (how much it swings) | 21.4% | 22.8% |
| Last 12 months | 18.9% | 27.3% |
| Last 3 years, per year | 25.0% | 31.2% |
| Last 5 years, per year | 14.7% | 18.5% |
| Last 10 years, per year | 20.5% | 24.2% |

Prices through October 16, 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 VGT returns by year

| Year | QQQ | VGT |
| --- | --- | --- |
| 2026 (part of the year) | 15.9% | 26.5% |
| 2025 | 20.8% | 21.8% |
| 2024 | 25.6% | 29.3% |
| 2023 | 54.9% | 52.7% |
| 2022 | −32.6% | −29.7% |
| 2021 | 27.4% | 30.4% |
| 2020 | 48.4% | 46.0% |
| 2019 | 39.0% | 48.6% |
| 2018 | −0.1% | 2.5% |
| 2017 | 32.7% | 37.1% |
| 2016 | 7.1% | 13.8% |
| 2015 | 9.4% | 5.1% |
| 2014 | 19.2% | 16.7% |
| 2013 | 36.6% | 31.0% |
| 2012 | 18.1% | 14.0% |
| 2011 | 3.5% | 0.5% |
| 2010 | 20.1% | 12.8% |
| 2009 | 54.7% | 61.9% |
| 2008 | −41.7% | −42.8% |
| 2007 | 19.0% | 14.8% |
| 2006 | 7.1% | 8.8% |
| 2005 | 1.6% | 3.0% |
| 2004 (part of the year) | 8.7% | −2.9% |

## 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.

VGT's worst fall was −54.6%, from October 31, 2007 to November 20, 2008. It got back to that high on January 6, 2011.

Their daily moves had a correlation of 0.97. 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 VGT

**QQQ.** People who want large growth companies beyond tech alone tend to pick QQQ.

**VGT.** People who want only the technology industry, including smaller tech companies, tend to pick VGT.

## Strategies that hold QQQ or VGT

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)](https://tactfolio.com/strategies/bold-asset-allocation.md), by Wouter Keller, 2022 (holds QQQ)
- [Defensive Asset Allocation (DAA)](https://tactfolio.com/strategies/defensive-asset-allocation.md), by Wouter Keller and JW Keuning, 2018 (holds QQQ)
- [Protective Asset Allocation (PAA)](https://tactfolio.com/strategies/protective-asset-allocation.md), by Wouter Keller and JW Keuning, 2016 (holds QQQ)
- [Vigilant Asset Allocation G12 (VAA-G12)](https://tactfolio.com/strategies/vigilant-asset-allocation-g12.md), by Wouter Keller and JW Keuning, 2017 (holds QQQ)
- [Bold Asset Allocation G4 (BAA aggressive)](https://tactfolio.com/strategies/bold-asset-allocation-g4.md), by Wouter Keller, 2022 (holds QQQ)
- [Quint Switching Filtered (Lewis Glenn’s QSF)](https://tactfolio.com/strategies/quint-switching-filtered.md), by Lewis A. Glenn, 2018 (holds QQQ)
- [Lethargic Asset Allocation (Keller’s LAA)](https://tactfolio.com/strategies/lethargic-asset-allocation.md), by Wouter J. Keller, 2019 (holds QQQ)
- [Resilient Asset Allocation (Keller’s RAA)](https://tactfolio.com/strategies/resilient-asset-allocation.md), by Wouter J. Keller, 2020 (holds QQQ)
- [Pragmatic Asset Allocation (Quantpedia’s PAA)](https://tactfolio.com/strategies/pragmatic-asset-allocation.md), by Radovan Vojtko and Juliána Javorská (Quantpedia), 2024 (holds QQQ)

## Other funds like QQQ and VGT

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [QQQ alternatives](https://tactfolio.com/alternatives/qqq.md) and [VGT alternatives](https://tactfolio.com/alternatives/vgt.md).

## Test a mix of QQQ and VGT

Open the [builder](https://tactfolio.com/builder), add QQQ and VGT, 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](https://tactfolio.com/etf/qqq.md) and [VGT](https://tactfolio.com/etf/vgt.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## 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](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### Does VGT hold Amazon or Google?

Under the industry groups VGT follows, those companies are not counted as information technology, so VGT does not hold them. QQQ does.

### Does VGT hold small tech companies?

Yes. VGT holds US technology companies of every size, about 320 in all. QQQ holds only the 100 largest companies on Nasdaq.

### Which is cheaper, QQQ or VGT?

VGT costs less: 0.09% a year against 0.18%. Fees come from each issuer and were checked on October 16, 2026.

### Which did better, QQQ or VGT?

From January 2004 to October 2026, QQQ returned about 14.8% a year and VGT returned about 14.8% a year, with dividends reinvested. Their worst drops were −53.4% and −54.6%. Past returns do not tell you what comes next.

## Sources

- [Invesco: Invesco QQQ Trust, Series 1 fund page](https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=QQQ)
- [Vanguard: Vanguard Information Technology ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vgt)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.