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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.

Updated October 2, 2026

How these figures are calculated: methodology.

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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

QQQ has lagged VGT over the trailing twelve months, posting a 24.84% total return against 37.02%. The lead holds up over 10 years too: VGT has compounded at 25.03% a year, against 21.10% 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jan 2004Volatility Sharpe Sortino Max drawdown
QQQ22.67%24.84%28.26%16.47%21.10%15.04%20.4%1.011.46-22.8%
VGT36.25%37.02%35.55%21.10%25.03%15.33%24.6%1.061.52-27.2%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jan 2004” measures every fund from January 30, 2004 — the start of shared available history — 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
Underlying indexNasdaq-100 IndexMSCI US Investable Market Index/Information Technology 25/50
Last Close$749.58 as of October 2, 2026$128.32 as of October 2, 2026
Distribution rate0.40%0.46%
Trailing 12-month yield0.41%0.37%
Distribution Safety Score™ 9793
Safety-Adjusted Yield 0.39%0.43%
Expense ratio0.18%0.09%
AUM$501B$155B
Distribution frequencyQuarterlyQuarterly
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
Beta1.261.49
Last dividend$0.75143 declared, pays 10/08/2026$0.1465
Ex-dividend date09/21/202609/23/2026

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.

Model this comparison:
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Income calculator

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

Invesco
ETFs246
Total AUM$1012B

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$4676B

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 0.40% 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 have different reference exposures: QQQ is linked to Nasdaq-100 Index while VGT is linked to MSCI US Investable Market Index/Information Technology 25/50, which means their performance drivers differ.

QQQ is the larger fund by assets ($501B), but assets alone do not establish trading costs or 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 $10.00 cash per distribution, while VGT would produce $11.50 cash per distribution, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.40%
VGT yield0.46%
Cash diff on $10K$1.50

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 tracks MSCI US Investable Market Index/Information Technology 25/50 with an index approach. Beta is 1.26 for QQQ and 1.49 for VGT, making QQQ the less volatile of the two by this measure.

QQQ beta1.26
VGT beta1.49

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $501B in assets. VGT is managed by Vanguard (launched 01/26/2004) with $155B in assets.

QQQ AUM$501B
VGT AUM$155B
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Frequently asked questions

What is the current distribution rate for QQQ and VGT?

QQQ currently distributes 0.40% and VGT 0.46%, based on fund data updated October 2026. Distribution rate 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) tracks MSCI US Investable Market Index/Information Technology 25/50 with an index approach. 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 1.49 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 $10.00 cash per distribution ($40.00 annually). The same in VGT would produce about $11.50 cash per distribution ($46.00 annually).

Which has performed better historically, QQQ or VGT?

QQQ has lagged VGT over the trailing twelve months, posting a 24.84% total return against 37.02%. The lead holds up over 10 years too: VGT has compounded at 25.03% a year, against 21.10% 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 October 3, 2026.

Overview

QQQ and VGT are both equity ETFs tracking technology-heavy indexes, but they differ fundamentally in breadth and composition. QQQ tracks the Nasdaq-100, capturing the 100 largest non-financial stocks on the Nasdaq exchange—a basket dominated by tech but including consumer, healthcare, and industrial names. VGT focuses exclusively on the information technology sector across the entire U.S. investable market, mixing large-cap, mid-cap, and small-cap tech stocks. The result: QQQ is broader and larger, VGT is narrower and sector-pure.

How they differ

QQQ's Nasdaq-100 exposure is much broader than VGT's pure tech mandate. QQQ includes Amazon, Tesla, Nvidia, and Meta alongside non-tech megacaps like Costco and Broadcom—companies spanning consumer, industrial, and healthcare. VGT excludes those outliers and concentrates on semiconductor, software, hardware, and services firms. QQQ has a lower expense ratio at 0.18% versus 0.09%, and vastly larger assets under management at $501B compared to $155B. Both distribute quarterly at modest yields—0.40% for QQQ and 0.46% for VGT—but VGT carries higher beta (1.49 versus 1.26), reflecting the amplified volatility of pure-sector concentration.

Who each is best for

QQQ: Fits investors seeking broad exposure to the largest Nasdaq-traded companies with a growth tilt, who accept a tech-heavy but not tech-only portfolio and value the combination of low fees, liquidity, and diversification beyond software and semiconductors.

VGT: Fits investors who want focused technology sector exposure across market capitalizations—those who believe technology will outperform and prefer avoiding non-tech noise, and who are comfortable with the higher volatility and concentration that comes with sector purity.

Key risks to know

  • Sector concentration and correlation: VGT's exclusive tech focus means all holdings move together in a sector downturn; a 10% tech sell-off will likely hurt VGT more sharply than QQQ, which has consumer, healthcare, and industrial buffers.
  • Beta divergence: VGT's beta of 1.49 versus QQQ's 1.26 is a meaningful gap; VGT amplifies both market upswings and downswings, raising the risk of larger drawdowns in bear markets.
  • QQQ's Nasdaq-100 composition creep: The Nasdaq-100 is dominated by mega-cap tech (often 40%+), so QQQ can drift toward concentrated large-cap tech exposure despite its broader name, especially when those mega-caps rally hard.
  • Valuation sensitivity: Both track growth-oriented indexes; in rising-rate environments or value rotations, growth stocks—and these indexes—tend to underperform, with VGT's narrower tech focus magnifying that headwind. If you want pure-play technology exposure and accept higher volatility in exchange for tighter sector focus, VGT's 0.09% fee and tech-only charter deliver that—but at the cost of concentration and 1.49 beta. Past performance does not 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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The metrics behind this comparison, explained in the Academy.

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

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These comparisons follow the Dividend Vision methodology.