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ETF Comparison

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

A head-to-head comparison of Invesco QQQ Trust and Vanguard Morningstar Total Stock Market 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.
  • VTIInvestors who want higher current income (1.01% vs 0.40% for QQQ).

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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

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 VTI over the trailing twelve months, posting a 24.84% total return against 16.09%. The lead holds up over 10 years too: QQQ has compounded at 21.10% a year, against 14.86% for VTI. VTI has been the steadier holding, though — annualized volatility of 15.4% 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 May 2001Volatility Sharpe Sortino Max drawdown
QQQ22.67%24.84%28.26%16.47%21.10%12.52%20.4%1.011.46-22.8%
VTI13.35%16.09%22.79%12.47%14.86%9.62%15.4%1.051.52-19.3%

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 May 2001” measures every fund from May 31, 2001 — 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.
MetricQQQVTI
Full nameInvesco QQQ TrustVanguard Morningstar Total Stock Market ETF
IssuerInvescoVanguard
Underlying indexNasdaq-100 IndexMorningstar US Total Market Index
Last Close$749.58 as of October 2, 2026$377.99 as of October 2, 2026
Distribution rate0.40%1.01%
Trailing 12-month yield0.41%1.04%
Distribution Safety Score™ 97100
Safety-Adjusted Yield 0.39%1.01%
Expense ratio0.18%0.03%
AUM$501B$700B
Distribution frequencyQuarterlyQuarterly
ObjectiveTrack the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.Seeks to track the Morningstar US Total Market Index.
Asset classEquityEquity
Inception date03/10/199905/24/2001
Beta1.261.0379
Last dividend$0.75143 declared, pays 10/08/2026$0.9555
Ex-dividend date09/21/202609/28/2026

Bottom lineChoose QQQ if you want a growth tilt and can accept bigger swings for higher upside. Choose VTI if you want higher current income (1.01% vs 0.40% for QQQ).

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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 VTI.

See all Vanguard ETFs

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Quick verdict

QQQ (Invesco QQQ Trust) and VTI (Vanguard Morningstar Total Stock Market ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VTI offers the higher yield at 1.01% vs 0.40% for QQQ. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VTI 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 VTI is linked to Morningstar US Total Market Index, which means their performance drivers differ.

VTI is the larger fund by assets ($700B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $10.00 cash per distribution, while VTI would produce $25.25 cash per distribution, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.40%
VTI yield1.01%
Cash diff on $10K$15.25

Cost & efficiency

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

QQQ ER0.18%
VTI ER0.03%

Strategy & risk

QQQ tracks Nasdaq-100 Index with a growth approach, while VTI tracks Morningstar US Total Market Index. Beta is 1.26 for QQQ and 1.0379 for VTI, making VTI the less volatile of the two by this measure.

QQQ beta1.26
VTI beta1.0379

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $501B in assets. VTI is managed by Vanguard (launched 05/24/2001) with $700B in assets.

QQQ AUM$501B
VTI AUM$700B
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Frequently asked questions

What is the current distribution rate for QQQ and VTI?

QQQ currently distributes 0.40% and VTI 1.01%, 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 VTI better for dividend income?

It depends on your goals. VTI 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 VTI?

QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a growth approach, while VTI (Vanguard Morningstar Total Stock Market ETF) tracks Morningstar US Total Market Index. They are issued by Invesco and Vanguard respectively.

Can I hold both QQQ and VTI?

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 VTI safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VTI scores 100, QQQ scores 97, so VTI's payout currently looks the more resilient of the two. VTI has also shown lower price volatility (beta 1.04 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 VTI?

QQQ has an expense ratio of 0.18% while VTI 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 VTI generate?

At current rates, $10,000 in QQQ would generate roughly $10.00 cash per distribution ($40.00 annually). The same in VTI would produce about $25.25 cash per distribution ($101.00 annually).

Which has performed better historically, QQQ or VTI?

QQQ has outpaced VTI over the trailing twelve months, posting a 24.84% total return against 16.09%. The lead holds up over 10 years too: QQQ has compounded at 21.10% a year, against 14.86% for VTI. VTI has been the steadier holding, though — annualized volatility of 15.4% 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 VTI — at a glance

Generated October 3, 2026.

Overview

QQQ and VTI are both broad-market equity ETFs, but they cover radically different slices of the U.S. stock market. The core distinction is concentration: QQQ is a growth-tilted play on mega-cap tech and innovation; VTI is a diversified total-market fund that includes mid-cap, small-cap, and value stocks alongside large-cap growth.

How they differ

The biggest difference is scope and tilt. QQQ holds 100 stocks and reports a beta of 1.26, reflecting greater sensitivity to market moves and overweight exposure to technology, consumer discretionary, and communication services. VTI holds approximately 3,500 securities with a beta of 1.0379, making it a closer match to the broad market. On costs, VTI's 0.03% expense ratio is 0.15% cheaper than QQQ's 0.18%. VTI is also substantially larger, with $700B in assets under management compared to QQQ's $501B.

Who each is best for

QQQ: Fits investors who want concentrated exposure to large-cap technology and innovation-driven sectors, have a higher risk tolerance, and believe in the long-term dominance of Nasdaq-listed mega-cap companies.

VTI: Fits investors seeking a single-fund total-market portfolio, prefer lower costs and broad diversification across all market capitalizations and sectors, and want a core holding that approximates overall U.S. equity market performance.

Key risks to know

  • Concentration risk in QQQ. With only 100 holdings, QQQ carries meaningful idiosyncratic risk if a handful of mega-cap tech names struggle. The Nasdaq-100 is heavily weighted toward technology, communication services, and consumer discretionary sectors; underperformance in those areas will directly hurt returns.
  • Beta divergence. QQQ's beta of 1.26 versus VTI's 1.0379 means QQQ amplifies both upside and downside market moves. In bull markets this can work in QQQ's favor; in prolonged downturns, the higher volatility can compound losses.
  • Valuation sensitivity. QQQ's tilt toward growth and high-multiple tech stocks makes it more vulnerable to rising interest rates and shifts in growth expectations. VTI's diversification across value and dividend-paying stocks offers more resilience in rate-hiking cycles.
  • Sector concentration risk. Technology and communication services dominate QQQ's holdings. A structural headwind in those sectors (regulatory action, AI disappointment, margin compression) affects far more of QQQ's portfolio than VTI's.

Bottom line

If you want broad, low-cost exposure to the entire U.S. stock market, VTI's 0.03% fee, $700B asset base, and 1.01% yield make it the simpler core-portfolio choice. If you're more bullish on large-cap technology and comfortable with higher volatility, QQQ offers concentrated upside but with meaningfully higher single-sector risk. Past performance does not guarantee future results, and the choice between them hinges on whether you want diversification or a deliberate tech tilt.

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.