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ETF Comparison

QQQ vs VOO: Same Large-Cap Market, Different Breadth

A head-to-head of the Invesco QQQ Trust and Vanguard's S&P 500 ETF focused on index breadth, sector concentration, cost, and overlap — not the small yield gap.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • QQQInvestors who want Nasdaq-100 exposure and can accept a more concentrated book.
  • VOOInvestors who want broader S&P 500 exposure and lower measured market sensitivity.

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 outpaced VOO over the trailing twelve months, posting a 24.84% total return against 16.45%. The lead holds up over 10 years too: QQQ has compounded at 21.10% a year, against 15.46% for VOO. VOO has been the steadier holding, though — annualized volatility of 14.8% against 20.4% 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 Sep 2010Volatility Sharpe Sortino Max drawdown
QQQ22.67%24.84%28.26%16.47%21.10%19.94%20.4%1.011.46-22.8%
VOO13.59%16.45%23.23%13.71%15.46%14.93%14.8%1.111.61-18.7%

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 Sep 2010” measures every fund from September 9, 2010 — 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.
MetricQQQVOO
Full nameInvesco QQQ TrustVanguard S&P 500 ETF
IssuerInvescoVanguard
Underlying indexNasdaq-100 IndexS&P 500 Index
Last Close$749.58 as of October 2, 2026$707.54 as of October 2, 2026
Distribution rate0.40%1.03%
Trailing 12-month yield0.41%1.05%
Distribution Safety Score™ 97100
Safety-Adjusted Yield 0.39%1.03%
Expense ratio0.18%0.03%
AUM$501B$1041B
Distribution frequencyQuarterlyQuarterly
ObjectiveTrack the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.Track the performance of the S&P 500 Index, representing 500 of the largest U.S. companies.
Asset classEquityEquity
Inception date03/10/199909/07/2010
Beta1.261.0
Last dividend$0.75143 declared, pays 10/08/2026$1.8226
Ex-dividend date09/21/202609/28/2026

Bottom lineChoose QQQ if you want Nasdaq-100 exposure and can accept a more concentrated book. Choose VOO if you want broader S&P 500 exposure and lower measured market sensitivity.

QQQ vs VOO: the index is the whole decision

Both are cheap US large-cap index funds. QQQ is 100 Nasdaq names, technology-heavy, with financials excluded by rule. VOO is about 500 companies across every major sector. QQQ costs more than VOO. Holding both doubles the Nasdaq-100 names that already sit inside VOO.

QQQVOO
IndexNasdaq-100 IndexS&P 500 Index
How many stocks100 non-financial Nasdaq companiesAbout 500 US large caps
Sector tiltTechnology-heavy; financials excluded by ruleEvery major sector at S&P 500 weights
Expense ratio0.18%0.03%
Distribution rate0.40%1.03%
If you already own the otherAdds Nasdaq concentration on top of VOOAlready includes most QQQ names
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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 VOO.

See all Vanguard ETFs

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Quick verdict

QQQ (Invesco QQQ Trust) and VOO (Vanguard S&P 500 ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VOO offers the higher yield at 1.03% vs 0.40% for QQQ. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VOO is cheaper with an expense ratio of 0.03% compared to 0.18%.

They have different reference exposures: QQQ is linked to Nasdaq-100 Index while VOO is linked to S&P 500 Index, which means their performance drivers differ.

VOO is the larger fund by assets ($1041B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose QQQ

Invesco QQQ Trust

  • Want Nasdaq-100 exposure — fewer names, heavier technology weight, and typically a higher current distribution.
  • Want a growth tilt and can accept larger swings for more upside.

Choose VOO

Vanguard S&P 500 ETF

  • Want broader S&P 500 exposure — more sectors, less mega-cap concentration, and typically lower beta.
  • Want higher current income — VOO yields 1.03% vs 0.40% for QQQ.
  • Want simple, diversified core exposure as a portfolio building block.
  • Want to keep costs low — a 0.03% 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 VOO would produce $25.75 cash per distribution, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.40%
VOO yield1.03%
Cash diff on $10K$15.75

Cost & efficiency

Over 10 years on $10,000, QQQ would cost approximately $180 in fees vs $30 for VOO (simplified, not compounded). The $150.00 difference may be offset by yield or performance.

QQQ ER0.18%
VOO ER0.03%

Strategy & risk

QQQ tracks Nasdaq-100 Index with a growth approach, while VOO tracks S&P 500 Index with a large cap approach. Beta is 1.26 for QQQ and 1.0 for VOO, making VOO the less volatile of the two by this measure.

QQQ beta1.26
VOO beta1.0

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $501B in assets. VOO is managed by Vanguard (launched 09/07/2010) with $1041B in assets.

QQQ AUM$501B
VOO AUM$1041B
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Frequently asked questions

What is the difference between QQQ and VOO?

They are not the same fund. VOO tracks S&P 500 Index — around 500 US large caps across every major sector. QQQ tracks Nasdaq-100 Index: 100 Nasdaq-listed companies with financials excluded by index rule, so it is much more concentrated in technology and a handful of mega caps. Breadth is the main difference. Cost is the other one people search: QQQ charges 0.18% against 0.03% for VOO. Yields sit close — 0.40% versus 1.03% — and holding both means owning most of the Nasdaq-100 twice, since those names already sit inside VOO. Figures as of October 2026.

What is the current distribution rate for QQQ and VOO?

QQQ currently distributes 0.40% and VOO 1.03%, 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 VOO better for dividend income?

It depends on your goals. VOO 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.

Can I hold both QQQ and VOO?

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 VOO safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VOO scores 100, QQQ scores 97, so VOO's payout currently looks the more resilient of the two. VOO has also shown lower price volatility (beta 1.00 vs 1.26 for QQQ). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, QQQ or VOO?

QQQ has an expense ratio of 0.18% while VOO charges 0.03%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in QQQ would generate roughly $10.00 cash per distribution ($40.00 annually). The same in VOO would produce about $25.75 cash per distribution ($103.00 annually).

Which has performed better historically, QQQ or VOO?

QQQ has outpaced VOO over the trailing twelve months, posting a 24.84% total return against 16.45%. The lead holds up over 10 years too: QQQ has compounded at 21.10% a year, against 15.46% for VOO. VOO has been the steadier holding, though — annualized volatility of 14.8% against 20.4% 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 VOO — at a glance

Generated October 3, 2026.

Overview

QQQ and VOO are both large-cap U.S. equity ETFs tracking broad market indexes, but they target different segments of the market. QQQ tracks the Nasdaq-100, which holds the 100 largest non-financial stocks (heavily concentrated in technology, consumer discretionary, and communication services), while VOO tracks the S&P 500, representing 500 large-cap companies across all sectors including financials. This sector tilt is the essential distinction: QQQ offers growth-tilted exposure; VOO offers balanced, diversified exposure across the broader economy.

How they differ

The most fundamental difference is their underlying index composition. QQQ excludes financial stocks entirely and skews heavily toward technology and high-growth sectors, giving it a beta of 1.26 versus 1.0 for the market-tracking VOO. That higher beta means QQQ tends to move more sharply in both directions.

Second, the yield gap reflects their different sector mix. VOO distributes 1.03%, while QQQ yields just 0.40%—a difference of 0.63 percentage points. This spread exists because the S&P 500 includes dividend-heavy financial, energy, and utility sectors that QQQ's Nasdaq focus omits. VOO's expense ratio, 0.03%, is also substantially lower than QQQ's 0.18%, a gap of 0.15% that compounds over decades.

Who each is best for

QQQ: Fits investors seeking concentrated exposure to high-growth sectors and willing to tolerate above-market volatility in exchange for potential outsized gains during technology rallies. Works for longer time horizons where growth compounding outweighs the drag of higher fees.

VOO: Fits investors prioritizing broad diversification across sectors and geographies within the U.S. large-cap universe, with a preference for lower fees, higher current income, and market-level risk. Appeals to those building core holdings with minimal trading friction.

Key risks to know

  • Sector concentration in QQQ: The fund's exclusion of financials and overweight in technology means it will significantly underperform during periods when cyclical sectors outpace growth. A rotation away from mega-cap tech could create sustained drag relative to the broader market.
  • Valuation sensitivity: QQQ's growth tilt means it carries higher price-to-earnings and price-to-book multiples on average. Rising interest rates or inflation expectations typically hit growth stocks harder than the S&P 500, exposing QQQ to sharper drawdowns.
  • Fee drag at VOO's scale: While VOO's 0.03% is minimal, QQQ's 0.18% becomes meaningful over 20+ years, particularly if the two funds deliver similar returns. A 0.15% annual fee difference compounds to meaningful underperformance assuming equal underlying performance.
  • Limited income from QQQ: The 0.40% yield leaves QQQ less suitable for investors building income-focused portfolios, requiring reliance on capital appreciation for total return.

Bottom line

QQQ's concentrated bet on growth sectors delivers higher volatility and upside potential, while VOO's broader diversification and lower fees provide steadier returns and lower friction. If you value growth exposure and volatility is acceptable, QQQ can add meaningful upside; if you prioritize diversification and cost efficiency, VOO's core-holding simplicity wins on math and strategy alignment. Past performance doesn't predict future results—today's growth leaders may underperform tomorrow's cyclical recovery.

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

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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These comparisons follow the Dividend Vision methodology.