ETF Comparison

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

A head-to-head comparison of Invesco QQQ Trust and Vanguard S&P 500 ETF covering yield, cost, risk, and income potential.

Data updated May 20, 2026

Invesco

ETFs13

Total AUM$657.4B

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

Invesco is a major asset manager recognized for developing innovative ETF solutions across diverse investment strategies. Their fund lineup focuses primarily on income generation, offering investors options that emphasize dividend yield and regular distributions. With a portfolio of four ETFs including popular tickers like PRF (Preferred Stock ETF) and QQQM (Nasdaq-100 ETF), Invesco serves both income-focused and growth-oriented investors seeking streamlined exposure to specific market segments.

See our curated list of related YouTube videos on QQQ.

See all Invesco ETFs

Vanguard

ETFs48

Total AUM$11763.3B

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

Vanguard is known for offering low-cost, passively managed ETFs that serve as core portfolio holdings for individual investors. Their fund lineup emphasizes core equity exposure and dividend income strategies, with offerings spanning domestic growth (VGT, VUG), broad market indices (VOO), dividend-focused portfolios (VYM, VIG), and international high dividend yield opportunities (VONG, VYMI). The issuer's seven funds are characterized by expense ratios among the industry's lowest and a focus on long-term, buy-and-hold investors seeking diversified equity exposure.

See our curated list of related YouTube videos on VOO.

See all Vanguard ETFs

Side-by-side snapshot

	QQQ	VOO
Full name	Invesco QQQ Trust	Vanguard S&P 500 ETF
Issuer	Invesco	Vanguard
Last Close	$705.88 as of May 20, 2026	$678.91 as of May 20, 2026
Distribution yield	0.40%	1.04%
Expense ratio	0.18%	0.03%
AUM	$440.3B	$1600.2B
Distribution frequency	Quarterly	Quarterly
Underlying index	Nasdaq-100 Index	S&P 500 Index
Objective	Track 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 class	Equity	Equity
Inception date	03/10/1999	09/07/2010
Beta	1.18	1.0
Last dividend	$0.73	$1.87
Ex-dividend date	03/23/2026	03/27/2026

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Key metrics

Projected income on $10K

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

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 1.04% 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 track different benchmarks: QQQ is linked to Nasdaq-100 Index while VOO tracks S&P 500 Index, which means their performance drivers differ.

VOO is the larger fund by assets ($1600.2B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $3.33/month, while VOO would produce $8.67/month, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.40%

VOO yield1.04%

Monthly diff on $10K$5.33

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 using a large cap strategy. Beta is 1.18 for QQQ and 1.0 for VOO, indicating VOO is less volatile relative to the market.

QQQ beta1.18

VOO beta1.0

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $440.3B in assets. VOO is managed by Vanguard (launched 09/07/2010) with $1600.2B in assets.

QQQ AUM$440.3B

VOO AUM$1600.2B

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Frequently asked questions

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.

What is the difference between QQQ and VOO?

QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a growth strategy, while VOO (Vanguard S&P 500 ETF) tracks S&P 500 Index with a large cap approach. They are issued by Invesco and Vanguard respectively.

Can I hold both QQQ and VOO?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

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 $3.33 per month ($40.00 annually). The same in VOO would produce about $8.67 per month ($104.00 annually).

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QQQ vs VOO — at a glance

Generated April 2026 from current fund data.

Overview

QQQ and VOO are both broad U.S. equity index ETFs, but they track different universes. QQQ follows the Nasdaq-100, which holds 100 of the largest non-financial Nasdaq stocks—heavily weighted toward technology, consumer, and health care. VOO tracks the S&P 500, a more diversified index of 500 large-cap companies across all sectors. The key distinction: QQQ tilts growth; VOO is blend.

How they differ

QQQ's biggest difference is its growth tilt. The Nasdaq-100 excludes financials and leans tech-heavy, so QQQ has higher beta (1.11 vs. 1.0) and will swing harder in both directions than VOO. That growth exposure also shows in dividend yield: QQQ pays 0.45% annually while VOO yields 1.09%—the spread reflects VOO's broader sector mix, which includes higher-dividend financials and industrials that QQQ omits.

Cost matters, but less here. VOO's expense ratio is just 0.03% versus QQQ's 0.18%, a 15-basis-point gap that compounds over decades. Scale tips heavily to VOO—it holds $1.42 trillion in assets versus QQQ's $372 billion, which generally translates to tighter trading spreads and deeper liquidity.

Who each is best for

QQQ: Growth-focused investors with moderate-to-high risk tolerance, longer time horizons (10+ years), and comfort with tech concentration. Works in taxable accounts for buy-and-hold strategies since turnover is low.

VOO: Core portfolio builders seeking broad market exposure with lower volatility, investors prioritizing dividend income, and anyone wanting the lowest-cost S&P 500 option. Ideal as a foundation holding in tax-advantaged or taxable accounts.

Key risks to know

Concentration risk in QQQ. The Nasdaq-100 is tech-heavy; a sector pullback hits QQQ harder than VOO. Tech represented roughly 45%+ of the index in recent years.
Higher volatility in QQQ. Beta of 1.11 means QQQ will likely trail VOO in down markets and lead in rallies, which can unsettle income-focused investors.
Sector exclusion in QQQ. Financial stocks are absent from the Nasdaq-100, so QQQ misses dividend contributions and upside from that segment during interest-rate cycles favoring banks.
Tracking risk and fees. QQQ's higher expense ratio (0.18%) is small in absolute terms but will gradually widen underperformance versus the Nasdaq-100 benchmark itself over decades.

Bottom line

If you're building a diversified core portfolio and want steady income with minimal fees, VOO's broad sector exposure, 1.09% yield, and razor-thin expense ratio make it the obvious choice. If you believe in tech-driven growth and can stomach higher short-term swings, QQQ offers concentrated exposure to the market's most dominant companies. Past performance does not predict future results, but the structural difference—QQQ's growth tilt versus VOO's balanced approach—will drive their relative behavior for years ahead.

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