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ETF Comparison

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

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

Data updated April 5, 2026

Side-by-side snapshot

QQQVUG
Full nameInvesco QQQ TrustVanguard Growth ETF
IssuerInvescoVanguard
Price$584.31$441.56
Distribution yield0.46%0.44%
Expense ratio0.18%0.03%
AUM$395.0B$335.9B
Distribution frequencyQuarterlyQuarterly
Underlying indexNasdaq-100 IndexCRSP US Large Cap Growth Index
ObjectiveTrack the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.Track the CRSP US Large Cap Growth Index for diversified exposure to U.S. growth equities.
Asset classEquityEquity
Inception date03/10/199901/26/2004
Beta1.151.21
Last dividend$0.73$0.48
Ex-dividend date03/23/202603/27/2026

Visual comparison

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 VUG (Vanguard Growth ETF) are both popular quarterly-pay track the nasdaq-100 index, which includes 100 of the largest non-financial nasdaq stocks. ETFs, but they take different approaches.

QQQ offers the higher yield at 0.46% vs 0.44% for VUG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VUG 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 VUG tracks CRSP US Large Cap Growth Index, which means their performance drivers differ.

QQQ is the larger fund by assets ($395.0B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $3.83/month while VUG would produce $3.67/month at current distribution rates. Both pay quarterly distributions.

QQQ yield0.46%
VUG yield0.44%
Monthly diff on $10K$0.17

Cost & efficiency

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

QQQ ER0.18%
VUG ER0.03%

Strategy & risk

QQQ tracks Nasdaq-100 Index with a track the nasdaq-100 index, which includes 100 of the largest non-financial nasdaq stocks. approach, while VUG tracks CRSP US Large Cap Growth Index using a track the crsp us large cap growth index for diversified exposure to u.s. growth equities. strategy. Beta is 1.15 for QQQ and 1.21 for VUG, indicating QQQ is less volatile relative to the market.

QQQ beta1.15
VUG beta1.21

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $395.0B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $335.9B in assets.

QQQ AUM$395.0B
VUG AUM$335.9B

Income calculator

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

Frequently asked questions

Is QQQ or VUG better for dividend income?

It depends on your goals. QQQ 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 VUG?

QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a track the nasdaq-100 index, which includes 100 of the largest non-financial nasdaq stocks. strategy, while VUG (Vanguard Growth ETF) tracks CRSP US Large Cap Growth Index with a track the crsp us large cap growth index for diversified exposure to u.s. growth equities. approach. They are issued by Invesco and Vanguard respectively.

Can I hold both QQQ and VUG?

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 VUG?

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

At current yields, $10,000 in QQQ would generate roughly $3.83 per month ($46.00 annually). The same in VUG would produce about $3.67 per month ($44.00 annually).

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