QQQM vs VUG | ETF Performance Comparison Tool (2024)

FAQs

Which is better, VUG or QQQM? ›

Both QQQM and VUG are considered high-volume assets. They're less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets. QQQM has more assets under management than VUG by $75,042,130,632. Higher AUM can be associated with better liquidity and lower slippage in trading.

QQQ has a higher expense ratio than QQQM by 0.05%. This can indicate that it's more expensive to invest in QQQ than QQQM. QQQ targets investing in US Equities, while QQQM targets investing in US Equities. QQQ is managed by Invesco, while QQQM is managed by Invesco.

Invesco NASDAQ 100 ETF (QQQM) has a higher volatility of 3.06% compared to Vanguard S&P 500 ETF (VOO) at 2.29%. This indicates that QQQM's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Vanguard Information Technology ETF (VGT) has a higher volatility of 4.63% compared to Invesco NASDAQ 100 ETF (QQQM) at 3.12%. This indicates that VGT's price experiences larger fluctuations and is considered to be riskier than QQQM based on this measure.

The answer is fees. QQQ charges 0.20% annually, but QQQM levies a modestly smaller 0.15% expense ratio. Yes, Invesco could have just drop the fee on QQQ from 0.20% to 0.15%, but why would they voluntarily give up that revenue?

Thesis: QQQM is the superior choice for long term holders. QQQ is still the preferable choice for short term traders. The QQQ and QQQM ETFs are very similar funds issued by Invesco, both aiming to replicate the NASDAQ 100 Index. The significant differences between them are in size, expense ratios, and bid/ask spreads.

QQQM is an ETF designed to track the Nasdaq-100 Index, a well-known benchmark comprised of large- and mega-cap US companies. QQQM provides access to some of the world's most innovative companies in the cost-effective³ and tax-efficient² ETF structure.

Invesco Nasdaq 100 ETF (QQQM)

“Historically, these investments have potential for higher growth over time that you will generally pay no taxes on when held in a Roth IRA.” A great example is QQQM, which tracks the Nasdaq-100 Index.

Performance is virtually identical. Either fund is suitable as a foundational stock ETF in your portfolio. QQQM has a smaller expense ratio, making it a better choice for buy-and-hold investors. See the table above for up-to-date three-, five, and 10-year average annual performance records.

Invesco QQQ — the ETF that tracks the Nasdaq-100 index — has beaten the S&P 500 eight out of the last 10 years as of March 31, 2024. Source: Morningstar Inc.

What is the future of QQQM? ›

QQQM 12 Month Forecast

Based on 103 Wall Street analysts offering 12 month price targets to QQQM holdings in the last 3 months. The average price target is $214.01 with a high forecast of $254.80 and a low forecast of $170.08. The average price target represents a 9.09% change from the last price of $196.18.

Vanguard High Dividend Yield ETF (VYM)

The better Vanguard ETF for their needs is likely VYM, which delivers a higher 2.9% 30-day SEC yield by targeting the FTSE High Dividend Yield Index. It also charges the same expense ratio as VIG does, at 0.06%.

VUG regularly outperforms VOO long-term. Its growth orientation allows it to gain slightly higher returns in the five-year and ten-year outlooks.

VGT - Performance Comparison. In the year-to-date period, QQQ achieves a 17.17% return, which is significantly lower than VGT's 20.00% return. Over the past 10 years, QQQ has underperformed VGT with an annualized return of 18.90%, while VGT has yielded a comparatively higher 21.08% annualized return.

Vanguard Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VUG is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market.