QQQ vs. VOO — ETF Comparison - Stock Analysis (2024)

In the past year, QQQ returned a total of 35.87%, which is significantly higher than VOO's 28.51% return. Over the past 10 years, QQQ has had annualized average returns of 18.69% , compared to 12.90% for VOO. These numbers are adjusted for stock splits and include dividends.

QQQ vs. VOO — ETF Comparison - Stock Analysis (2024)

FAQs

QQQ vs. VOO — ETF Comparison - Stock Analysis? ›

Average Return. In the past year, QQQ returned a total of 39.00%, which is significantly higher than VOO's 30.85% return. Over the past 10 years, QQQ has had annualized average returns of 18.52% , compared to 12.78% for VOO. These numbers are adjusted for stock splits and include dividends.

Is it better to trade QQQ or spy? ›

The table demonstrates that the difference between SPY and QQQ is that the S&P 500 Index and SPY ETF provide much better options for diversification across economic sectors. Despite this, the tech sector accounts for over a third of assets in this fund and is actually 3 times more than the second largest sector.

Is QQQ better than Vanguard? ›

VGT - Performance Comparison. In the year-to-date period, QQQ achieves a 11.97% return, which is significantly lower than VGT's 12.92% return. Over the past 10 years, QQQ has underperformed VGT with an annualized return of 18.54%, while VGT has yielded a comparatively higher 20.61% annualized return.

What is the downside to investing in QQQ? ›

The QQQ ETF offers buy-and-hold investors low expenses and long-term growth potential with enough diversification to avoid the risks of betting on one company. On the downside, long-term investors in QQQ must deal with sector risk, possible overvaluation, and the absence of small caps.

What ETF is comparable to VOO? ›

ETF Benchmarks & Alternatives
TickerNameExpense Ratio
VOOVanguard S&P 500 ETF0.03%
IVViShares Core S&P 500 ETF0.04%
SPYSPDR S&P 500 ETF Trust0.09%
SHProShares Short S&P5000.89%
4 more rows

Does QQQ outperform the S&P 500? ›

A history of outperformance. Invesco QQQ — the ETF that tracks the Nasdaq-100 index — has beaten the S&P 500 nine out of the last 10 years. Source: Morningstar Inc. Data begins 10 years prior to the ending date.

What is the 10 year return of QQQ? ›

Source: Bloomberg L.P., QQQ NAV 10-year performance reflected 18.58% growth versus 12.93% by the S&P 500, as of March 31, 2024.

What ETF outperforms QQQ? ›

The Invesco QQQ Trust, long synonymous with tech, had a phenomenal year. But a less-discussed tech ETF, the SPDR NYSE Technology ETF, outperformed it in 2023.

What outperforms QQQ? ›

Bloomberg recently reported that only one equity mutual fund, the Baron Partners Fund, has outperformed QQQ over the past 5, 10, and 15 years, mainly due to its outsized exposure to Tesla.

Is investing in QQQ risky? ›

Risk 1: Market risk

Although QQQ and other ETFs have helped democratize investing, the benefits of the ETF structure don't remove any of the inherent risks of investing in stocks, bonds, real estate, and other asset classes.

Is QQQ a good long term hold? ›

The QQQ gained 18.1% annually over the past 10 years. That tops all of the nearly 300 ETFs in the category. That easily outpaces the 12.6% average annual gain of the SPDR S&P 500 ETF Trust (SPY) — the cornerstone of most investors' portfolios. And the QQQ is cheap, only charging 0.2%.

Is QQQ a good long term stock? ›

QQQ appears to be the single best long-term investment option for investors seeking total returns due to its ability to expose holders to top U.S. companies on an ongoing basis. The Nasdaq 100 has consistently outperformed the S&P 500 in terms of total returns, making it a favorable choice for long-term investors.

What is the best ETF for long-term growth? ›

7 Best Long-Term ETFs to Buy and Hold
ETFAssets Under ManagementExpense Ratio
Invesco QQQ Trust (QQQ)$259 billion0.20%
Vanguard High Dividend Yield ETF (VYM)$55 billion0.06%
Vanguard Total International Stock ETF (VXUS)$69 billion0.08%
Vanguard Total World Stock ETF (VT)$35 billion0.07%
3 more rows
Apr 24, 2024

What is better than VOO? ›

The primary difference between SPY, VOO, IVV, and SPLG is their cost. SPLG has the lowest cost at 0.02%, followed by VOO and IVV at 0.03%, and SPY at 0.09%. If you are a cost-conscious investor, the VOO, IVV, and SPLG might make a more attractive option compared to SPY with their lower expense ratios.

What are the three best ETFs? ›

3 Top ETFs for a Diversified Stock Portfolio
  1. SPDR S&P 500 ETF Trust. The SPDR S&P 500 ETF Trust (SPY 0.66%) mirrors the S&P 500 Index, encompassing 500 of the largest U.S. corporations. ...
  2. Invesco QQQ Trust. ...
  3. iShares Russell 2000 ETF.
May 12, 2024

What pairs well with VOO? ›

Many people pair VOO with the Vanguard Total Bond Market ETF (BND) in a broader portfolio. The fixed income ETF has $95 billion in assets and is the largest bond ETF trading in the U.S. BND has two-thirds of its assets in U.S. government bonds, with most of the remainder in investment-grade corporate bonds.

Is QQQ or SPY more volatile? ›

SPY - Volatility Comparison. Invesco QQQ (QQQ) has a higher volatility of 4.84% compared to SPDR S&P 500 ETF (SPY) at 3.37%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure.

Is investing in QQQ worth it? ›

Summary. QQQ appears to be the single best long-term investment option for investors seeking total returns due to its ability to expose holders to top U.S. companies on an ongoing basis.

Is SPY good for trading? ›

Bottom Line. The SPY ETF can be a convenient way to gain low-cost exposure to a diversified basket of large cap U.S. stocks. While SPY has multiple advantages, investors should remain aware of certain risks, such as lack of exposure to other areas of the market, before buying shares.

Does the Nasdaq outperform the S&P 500? ›

The following table shows the CAGR returns of the FAANG stocks over the past 5 years. The CAGR returns have been in the range of 23-40%. The significantly higher allocation towards FAANG stocks has ensured that Nasdaq 100 has outperformed S&P 500 index by a wide margin.

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