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ETF Comparison

VUG vs QQQM: A Growth Style, or 100 Nasdaq Names?

A head-to-head of Vanguard's large-cap growth ETF and Invesco's Nasdaq 100 ETF covering how each book is built, cost, and overlap.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • QQQMInvestors who want a growth tilt and can accept bigger swings for higher upside.
  • VUGInvestors who want a growth tilt and can accept bigger swings for higher upside.

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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.

QQQM has outpaced VUG over the trailing twelve months, posting a 24.91% total return against 14.00%. The lead holds up over 5 years too: QQQM has compounded at 16.56% a year, against 13.89% for VUG. 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 annualizedSince Oct 2020Volatility Sharpe Sortino Max drawdown
QQQM22.72%24.91%28.34%16.56%17.70%20.2%1.021.47-22.7%
VUG12.87%14.00%26.46%13.89%15.40%19.7%0.971.40-22.8%

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 Oct 2020” measures every fund from October 13, 2020 — 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.
MetricQQQMVUG
Full nameInvesco NASDAQ 100 ETFVanguard Morningstar Growth ETF
IssuerInvescoVanguard
Underlying indexNASDAQ-100 IndexMorningstar US Large Cap Growth Index
Last Close$308.69 as of October 2, 2026$91.17 as of October 2, 2026
Distribution rate0.41%0.40%
Trailing 12-month yield0.43%0.38%
Distribution Safety Score™ 9790
Safety-Adjusted Yield 0.40%0.36%
Expense ratio0.15%0.03%
AUM$110B$235B
Distribution frequencyQuarterlyQuarterly
ObjectiveTrack the NASDAQ-100 Index with a lower expense ratio alternative to QQQ.Seeks to track the Morningstar US Large Cap Growth Index.
Asset classEquityEquity
Inception date10/13/202001/26/2004
Beta1.181.27
Last dividend$0.313$0.091
Ex-dividend date09/21/202609/28/2026

Bottom lineQQQM and VUG are both for investors who want a growth tilt and can accept bigger swings for higher upside — so strategy isn't the deciding factor here. Cost is: VUG charges 0.03% against 0.15% for QQQM, and between two funds this similar that gap comes straight out of your return every year you hold.

QQQM vs VUG: Nasdaq-100 or broad growth?

QQQM is 100 Nasdaq names. VUG is a large-cap growth style. Screens and concentration are the decision, not a small yield gap.

QQQMVUG
What it ownsNASDAQ-100 IndexUS large-cap growth
Expense ratio0.15%0.03%
Distribution rate0.41%0.40%
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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 QQQM.

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 VUG.

See all Vanguard ETFs

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Quick verdict

QQQM (Invesco NASDAQ 100 ETF) and VUG (Vanguard Morningstar Growth ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

QQQM offers the higher yield at 0.41% vs 0.40% 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 0.15%.

They have different reference exposures: QQQM is linked to NASDAQ-100 Index while VUG is linked to Morningstar US Large Cap Growth Index, which means their performance drivers differ.

VUG is the larger fund by assets ($235B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQM would generate roughly $10.25 cash per distribution, while VUG would produce $10.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

QQQM yield0.41%
VUG yield0.40%
Cash diff on $10K$0.25

Cost & efficiency

Over 10 years on $10,000, QQQM would cost approximately $150 in fees vs $30 for VUG (simplified, not compounded). The $120.00 difference may be offset by yield or performance.

QQQM ER0.15%
VUG ER0.03%

Strategy & risk

QQQM tracks NASDAQ-100 Index with a growth approach, while VUG tracks Morningstar US Large Cap Growth Index with a growth approach. Beta is 1.18 for QQQM and 1.27 for VUG, making QQQM the less volatile of the two by this measure.

QQQM beta1.18
VUG beta1.27

Fund details

QQQM is managed by Invesco (launched 10/13/2020) with $110B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $235B in assets.

QQQM AUM$110B
VUG AUM$235B
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Frequently asked questions

What is the difference between VUG and QQQM?

VUG (Vanguard Morningstar Growth ETF) holds large-cap growth across US listings. QQQM (Invesco NASDAQ 100 ETF) tracks NASDAQ-100 Index — 100 Nasdaq names with financials excluded by rule. Cost is 0.03% versus 0.15%; distributions are 0.40% and 0.41% as of October 2026. They share mega-cap growth names. Holding both doubles that overlap.

What is the current distribution rate for QQQM and VUG?

QQQM currently distributes 0.41% and VUG 0.40%, 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 QQQM or VUG better for dividend income?

It depends on your goals. QQQM 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 QQQM and VUG?

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 QQQM or VUG safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — QQQM scores 97, VUG scores 90, so QQQM's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, QQQM or VUG?

QQQM has an expense ratio of 0.15% 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 QQQM vs VUG generate?

At current rates, $10,000 in QQQM would generate roughly $10.25 cash per distribution ($41.00 annually). The same in VUG would produce about $10.00 cash per distribution ($40.00 annually).

Which has performed better historically, QQQM or VUG?

QQQM has outpaced VUG over the trailing twelve months, posting a 24.91% total return against 14.00%. The lead holds up over 5 years too: QQQM has compounded at 16.56% a year, against 13.89% for VUG. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

QQQM vs VUG — at a glance

Generated October 3, 2026.

Overview

QQQM and VUG are both large-cap growth ETFs tracking distinct broad-market indexes. QQQM follows the NASDAQ-100, which concentrates on the 100 largest nonfinancial stocks on the Nasdaq exchange and carries a tech-heavy tilt. VUG tracks the Morningstar US Large Cap Growth Index, a wider universe of large-cap growth stocks across all US exchanges with more sector balance. The funds differ fundamentally in composition, fees, and volatility profile.

How they differ

QQQM's biggest distinction is its NASDAQ-100 focus, which means it holds a narrower set of mega-cap stocks—dominated by technology, consumer, and communication names—versus VUG's broader large-cap growth mandate across all exchanges. VUG charges 0.03%, a material 0.12% cheaper than QQQM's 0.15%, and carries a larger asset base at $235B compared to $110B. QQQM's beta of 1.18 sits below VUG's 1.27, suggesting QQQM exhibits somewhat lower volatility relative to the broad market, likely because the NASDAQ-100 excludes financials and avoids some of the cyclical swings VUG's broader index encounters. Both offer minimal income—0.41% and 0.40% respectively—reflecting the capital-appreciation focus of growth equity.

Who each is best for

QQQM: Fits investors comfortable with concentrated mega-cap technology exposure who view the 100 largest nonfinancial Nasdaq stocks as their core growth engine and want lower costs than the original QQQ fund.

VUG: Fits investors seeking diversified large-cap growth across all sectors and exchanges, with a preference for the lowest possible expense ratio and an established fund with a long track record.

Key risks to know

  • Concentration in technology and mega-cap names. QQQM's NASDAQ-100 mandate naturally overweights the largest technology firms; a sustained downturn in big tech earnings or multiple compression could hit QQQM harder than the broader market. VUG's wider index reduces this single-sector risk.
  • Valuation sensitivity in growth equity. Both funds hold stocks with historically high price-to-earnings and price-to-book multiples. Rising interest rates or a shift in investor preference toward value can pressure growth stocks across both portfolios.
  • QQQM's higher beta suggests amplified market swings. With a beta of 1.18 versus 1.27, QQQM is likely to decline more sharply than VUG in a broad market downturn, offsetting its slightly lower volatility profile relative to its own index.
  • Index overlap may mean similar exposures to mega-cap winners. Both funds hold major positions in the largest tech stocks; their underlying indexes may not be as distinct as their composition suggests, limiting any diversification benefit from holding both.

Bottom line

If you want concentrated mega-cap growth with a tech focus and are comfortable with higher beta, QQQM offers a low-cost vehicle. If you prefer broad large-cap growth diversification across sectors and exchanges, VUG's lower expense ratio and wider index make it the simpler foundation. Past performance of either index does not guarantee future results.

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

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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.