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ETF Comparison

QQQ vs VGT: Which Is the Better Pick in 2026?

A head-to-head comparison of Invesco QQQ Trust and Vanguard Information Technology ETF covering yield, cost, risk, and income potential.

Data updated August 19, 2026

Best for

  • QQQInvestors who want a growth tilt and can accept bigger swings for higher upside.
  • VGTInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

QQQ has lagged VGT over the trailing twelve months, posting a 24.68% total return against 35.97%. The lead holds up over 10 years too: VGT has compounded at 24.36% a year, against 20.68% for QQQ. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Jan 2004Volatility Sharpe Sortino Max drawdown
QQQ17.07%24.68%26.08%15.29%20.68%14.89%20.5%0.921.32-22.8%
VGT26.00%35.97%31.57%19.20%24.36%15.02%24.6%0.941.34-27.2%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jan 2004” measures every fund from January 30, 2004 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricQQQVGT
Full nameInvesco QQQ TrustVanguard Information Technology ETF
IssuerInvescoVanguard
Last Close$717.51 as of August 19, 2026$119.79 as of August 19, 2026
Distribution yield0.45%0.46%
Distribution Safety Score™ 9793
Expense ratio0.18%0.09%
AUM$496B$151B
Distribution frequencyQuarterlyQuarterly
Underlying indexNasdaq-100 Indexa basket of Vanguard Information Technology ETF holdings
ObjectiveTrack the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.Seeks to track the performance of the MSCI US Investable Market Index/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, including technology software and services, hardware and equipment, and semiconductor manufacturers.
Asset classEquityEquity
Inception date03/10/199901/26/2004
Beta1.261.47
Last dividend$0.8135$0.1384
Ex-dividend date06/22/202606/24/2026

Bottom lineChoose QQQ if you want a growth tilt and can accept bigger swings for higher upside. Choose VGT if you want broad equity exposure.

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Invesco
ETFs247
Total AUM$1008B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Invesco is a major ETF provider known for offering a comprehensive lineup spanning multiple asset classes and investment strategies. The company specializes in income-focused products including dividend, covered call, and bond strategies, while also maintaining broad exposure across equity, factor-based, thematic, and ESG investing themes. Invesco's portfolio ranges from index-tracking funds to alternatives and specialized offerings like digital assets and BulletShares, making it one of the more expansive ETF families available to investors.

See our curated list of related YouTube videos on QQQ.

See all Invesco ETFs
Vanguard
ETFs116
Total AUM$4703B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VGT.

See all Vanguard ETFs

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Quick verdict

QQQ (Invesco QQQ Trust) and VGT (Vanguard Information Technology ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VGT offers the higher yield at 0.46% vs 0.45% for QQQ. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VGT is cheaper with an expense ratio of 0.09% compared to 0.18%.

They track different benchmarks: QQQ is linked to Nasdaq-100 Index while VGT tracks a basket of Vanguard Information Technology ETF holdings, which means their performance drivers differ.

QQQ is the larger fund by assets ($496B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose QQQ

Invesco QQQ Trust

  • Want a growth tilt and can accept larger swings for more upside.
  • Prefer lower volatility — a beta of 1.3 vs 1.5 for VGT.

Choose VGT

Vanguard Information Technology ETF

  • Want broad equity exposure.
  • Want to keep costs low — a 0.09% expense ratio vs 0.18% for QQQ.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $3.75/month, while VGT would produce $3.83/month, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.45%
VGT yield0.46%
Monthly diff on $10K$0.08

Cost & efficiency

Over 10 years on $10,000, QQQ would cost approximately $180 in fees vs $90 for VGT (simplified, not compounded). The $90.00 difference may be offset by yield or performance.

QQQ ER0.18%
VGT ER0.09%

Strategy & risk

QQQ tracks Nasdaq-100 Index with a growth approach, while VGT holds a basket of Vanguard Information Technology ETF holdings. Beta is 1.26 for QQQ and 1.47 for VGT, making QQQ the less volatile of the two by this measure.

QQQ beta1.26
VGT beta1.47

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $496B in assets. VGT is managed by Vanguard (launched 01/26/2004) with $151B in assets.

QQQ AUM$496B
VGT AUM$151B
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Frequently asked questions

What is the current distribution yield for QQQ and VGT?

QQQ currently distributes 0.45% and VGT 0.46%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is QQQ or VGT better for dividend income?

It depends on your goals. VGT currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between QQQ and VGT?

QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a growth approach, while VGT (Vanguard Information Technology ETF) holds a basket of Vanguard Information Technology ETF holdings. They are issued by Invesco and Vanguard respectively.

Can I hold both QQQ and VGT?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is QQQ or VGT safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — QQQ scores 97, VGT scores 93, so QQQ's payout currently looks the more resilient of the two. QQQ has also shown lower price volatility (beta 1.26 vs 1.47 for VGT). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, QQQ or VGT?

QQQ has an expense ratio of 0.18% while VGT charges 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in QQQ vs VGT generate?

At current rates, $10,000 in QQQ would generate roughly $3.75 per month ($45.00 annually). The same in VGT would produce about $3.83 per month ($46.00 annually).

Which has performed better historically, QQQ or VGT?

QQQ has lagged VGT over the trailing twelve months, posting a 24.68% total return against 35.97%. The lead holds up over 10 years too: VGT has compounded at 24.36% a year, against 20.68% for QQQ. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

QQQ vs VGT — at a glance

Generated August 15, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

QQQ and VGT are both large-cap technology-heavy ETFs, but they track different universes. QQQ holds the 100 largest non-financial stocks on the Nasdaq, which spans technology, consumer discretionary, and biotech. VGT tracks the U.S. information technology sector specifically—software, hardware, semiconductors, and IT services across large, mid, and small caps. The key difference: QQQ is a broad Nasdaq play; VGT is a pure-sector bet on technology.

How they differ

QQQ's defining feature is its Nasdaq-100 focus, which gives it meaningful exposure outside tech—think consumer names like Amazon and Tesla, along with biotech plays. VGT is constrained to information technology only, making it narrower and more concentrated in software, chips, and IT infrastructure. Both carry identical distribution rates (0.45%) and quarterly frequency, but VGT's expense ratio is 0.10% versus QQQ's 0.18%, a small but real edge. VGT is slightly more volatile, with a beta of 1.47 compared to QQQ's 1.26. VGT's $147B in AUM is substantial but less than QQQ's $479B, which may mean tighter trading spreads in QQQ.

Who each is best for

QQQ: Fits investors seeking broad exposure to mega-cap growth stocks across the Nasdaq, including technology, consumer discretionary, and healthcare. Appeals to those comfortable with lower beta than the S&P 500 but still wanting diversification beyond pure-sector plays.

VGT: Fits investors with a deliberate thesis on information technology's growth and who want pure-sector exposure without non-tech Nasdaq names like Tesla or Amazon clouding the position.

Key risks to know

  • Sector concentration in VGT. A downturn specific to software, semiconductors, or IT services would hit VGT harder than QQQ, which has a buffer from consumer and biotech holdings.
  • High absolute valuations in both. These are growth ETFs holding large-cap tech at historically elevated multiples. Compressed valuations could pressure returns meaningfully, especially if interest rates remain elevated.
  • VGT's higher beta. At 1.47, VGT amplifies market swings more than QQQ (1.26). During downturns, losses will compound faster; during rallies, the reverse applies.
  • Earnings concentration risk. Both are heavily weighted to a handful of mega-cap names (Microsoft, Apple, Nvidia, etc.). A earnings miss at a top-three holding affects both, though VGT's tighter focus means fewer shock absorbers.
  • Overlap in holdings. The portfolios likely share significant names, particularly the largest semiconductor and software companies. Diversification gains between these two ETFs may be limited.

Bottom line

Both ETFs offer liquid exposure to tech-driven growth, but with different scope. QQQ gives you Nasdaq breadth at a lower cost of volatility; VGT gives you pure information technology with a lower expense ratio. If you want the largest non-financial Nasdaq stocks with some non-tech exposure, QQQ's broader mandate and lower beta fit that profile; if you're betting specifically on technology and willing to accept higher volatility for that conviction, VGT's sector purity and lower cost become relevant. Past performance doesn't predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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How covered-call funds work How to read a fund's stats The covered-call opportunity cost

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