VOOvs QQQ

Quick verdict

Vanguard S&P 500 ETF (VOO) and Invesco QQQ Trust (QQQ) are often compared by investors building a core portfolio. Their holdings overlap by roughly 30.1% (moderate overlap), sharing 6 of their top positions. VOO is cheaper at 0.03% vs 0.20%, VOO pays more income, and QQQ has the stronger recent track record. On balance VOO scores higher, but if overlap is high you likely only need one of the two.

Holdings overlap

VOO and QQQ overlap by about 30.1% across their largest holdings, which is moderate. There is meaningful shared exposure but also genuine differences, so pairing them is defensible if you want a tilt.

2-year relative performance

At-a-glance comparison

Cost

VOO is the lower-cost fund. VOO charges an expense ratio of 0.03% versus 0.20% for QQQ. On a $10,000 position that is about $3 vs $20 per year — small, but it compounds over decades.

Income & yield

VOO yields 1.3% and QQQ yields 0.6%, so VOO is the stronger choice for income-focused investors. Higher yield can reflect a value or covered-call strategy rather than simply "more free money," so check the category: US Large-Cap Blend vs US Large-Cap Growth (Nasdaq-100).

Performance

Over five years VOO has returned 5.2% annualised against 14.8% for QQQ; on a three-year basis it is 8.2% vs 17.3%. QQQ leads recently, though past performance does not predict future results and is heavily influenced by sector weightings.

Structure & diversification

VOO holds about 209 positions (US Large-Cap Blend, Vanguard); QQQ holds about 84 (US Large-Cap Growth (Nasdaq-100), Invesco). VOO is the more diversified by raw holding count, and AUM is 283.8B vs 441.8B — larger funds tend to be more liquid with tighter spreads.

Which ETF fits which investor

For the lowest cost, choose VOO. For the most income, VOO. For growth exposure, QQQ. Given 30.1% overlap, holding both mainly makes sense if you specifically want to tilt toward one strategy — otherwise pick the single fund that matches your goal. This is a factual comparison, not advice.

• Lowest cost: VOO
• Most income: VOO
• Growth exposure: QQQ

Frequently asked questions

How much do VOO and QQQ overlap?

Their largest holdings overlap by approximately 30.1% (moderate), sharing 6 top positions. There is room for both to add diversification.

Which is cheaper, VOO or QQQ?

VOO is cheaper, with an expense ratio of 0.03% versus 0.20%.

Which has the higher dividend yield?

VOO yields 1.3% and QQQ yields 0.6%, so VOO pays more income.

Should I own both VOO and QQQ?

With 30.1% overlap, owning both can be reasonable if you want to combine their different exposures.

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