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 July 4, 2026

Invesco

ETFs255

Total AUM$971B

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

Invesco is a major player in the ETF space known for offering a broad, diversified lineup of 71 funds spanning multiple investment themes and strategies. Their portfolio spans income-focused funds, factor-based equity strategies, commodity exposure, digital assets, ESG investing, and the popular Invesco QQQ family tracking the Nasdaq-100, serving both income-seeking and growth-oriented investors. The issuer is particularly recognized for specialized offerings like BulletShares (laddered bond funds), sector rotation strategies, and thematic investing options, making it a comprehensive choice for investors seeking varied exposures beyond traditional index funds.

See our curated list of related YouTube videos on QQQ.

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Vanguard

ETFs115

Total AUM$4484B

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 emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

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	$712.60 as of July 4, 2026	$684.84 as of July 4, 2026
Distribution yield	0.45%	1.15%
Distribution Safety Score	95	100
Expense ratio	0.18%	0.03%
AUM	$481B	$1033B
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	1.23	1.0
Last dividend	$0.7941	$1.9622
Ex-dividend date	12/21/2026	06/26/2026

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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 outpaced VOO over the trailing twelve months, posting a 30.76% total return against 21.69%. The lead holds up over 10 years too: QQQ has compounded at 21.60% a year, against 15.38% for VOO. VOO has been the steadier holding, though — annualized volatility of 14.9% against 20.2% for QQQ. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Sep 2010	Volatility	Sharpe	Sortino	Max drawdown
QQQ	16.37%	30.76%	25.08%	15.64%	21.60%	19.89%	20.2%	0.89	1.27	-22.8%
VOO	9.34%	21.69%	20.30%	13.11%	15.38%	14.91%	14.9%	0.95	1.36	-18.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Sep 2010” measures every fund from September 9, 2010 — 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.

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 1.15% vs 0.45% 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 ($1033B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $3.75/month, while VOO would produce $9.58/month, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.45%

VOO yield1.15%

Monthly diff on $10K$5.83

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 1.23 for QQQ and 1.0 for VOO, indicating VOO is less volatile relative to the market.

QQQ beta1.23

VOO beta1.0

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $481B in assets. VOO is managed by Vanguard (launched 09/07/2010) with $1033B in assets.

QQQ AUM$481B

VOO AUM$1033B

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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 approach, 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 $3.75 per month ($45.00 annually). The same in VOO would produce about $9.58 per month ($115.00 annually).

Which has performed better historically, QQQ or VOO?

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QQQ vs VOO — at a glance

Generated June 2026 from current fund data.

Overview

QQQ and VOO are both broad-market index ETFs that track different segments of large-cap U.S. equities. QQQ follows the Nasdaq-100, capturing the 100 largest non-financial stocks on the Nasdaq exchange — a portfolio skewed toward technology, growth, and innovation-driven sectors. VOO tracks the S&P 500, a more diversified index of 500 large-cap companies weighted across technology, healthcare, financials, industrials, and other sectors. The fundamental difference is scope and tilt: QQQ is narrower and growth-oriented, while VOO is broader and more balanced.

How they differ

The single biggest distinction is index composition and sector tilt. QQQ holds 100 non-financial stocks, concentrated in technology and growth names; VOO holds 500 companies across all major economic sectors. This drives a second major difference: volatility and return profile. QQQ carries a beta of 1.23, meaning it amplifies broader market moves by roughly 23%; VOO has a beta of 1.0, tracking the market more directly. On yield, VOO distributes 1.11% annually versus QQQ's 0.44%, reflecting VOO's larger exposure to dividend-paying industrials and financials. The expense ratio gap is stark—VOO charges 0.03% while QQQ charges 0.18%—a 0.15 percentage point difference that compounds substantially on QQQ's $481B in assets. VOO holds a commanding size advantage at $1033B in AUM, giving it tighter trading spreads and deeper liquidity.

Who each is best for

QQQ: Fits investors with higher risk tolerance who want concentrated exposure to large-cap technology and growth sectors and expect to stay invested for multi-year horizons. Complements broader index holdings for those already owning a core large-cap position.

VOO: Fits investors seeking a single-fund broad market proxy with minimal costs and maximum diversification across all sectors. Aligns with longer-term buy-and-hold strategies where low fees and balanced exposure matter more than sector concentration.

Key risks to know

Sector concentration in QQQ. Technology exposure in the Nasdaq-100 is substantially higher than in the S&P 500; prolonged tech sector weakness or valuation compression will hit QQQ harder than VOO.

Higher volatility and drawdown risk in QQQ. The 1.23 beta means QQQ will decline more sharply in bear markets. A 20% market correction could see QQQ drop closer to 25%, versus VOO's 20%.

Fee drag on QQQ. At 0.18%, QQQ's expense ratio is six times VOO's 0.03%. Over 20 years, that 0.15 percentage point difference erodes meaningfully if both indices deliver similar returns.

Interest rate sensitivity in growth-heavy QQQ. Nasdaq-100 holdings—typically younger companies with thin near-term earnings—are structurally more sensitive to rising discount rates than the broader S&P 500.

Bottom line

If you prioritize lowest cost and balanced sector exposure, VOO's combination of 0.03% fees and $1033B in liquidity stands out. If you want concentrated exposure to growth and technology leaders and can stomach higher volatility, QQQ's narrower focus justifies its place in a satellite position. Past performance does not guarantee future results; the choice hinges on your existing portfolio and risk appetite.

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