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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.

Data updated August 19, 2026

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.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

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

Total returns

QQQM has outpaced VUG over the trailing twelve months, posting a 24.99% total return against 14.56%. The lead holds up over 5 years too: QQQM has compounded at 15.19% a year, against 12.77% 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.
SymbolYTD1Y3Y5YSince Oct 2020Volatility Sharpe Sortino Max drawdown
QQQM17.33%24.99%26.88%15.19%17.21%20.3%0.961.38-22.7%
VUG8.66%14.56%24.89%12.77%15.00%19.8%0.911.30-22.8%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 18, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2020” measures every fund from October 13, 2020 — 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.

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
Last Close$295.45 as of August 19, 2026$87.86 as of August 19, 2026
Distribution yield0.48%0.42%
Distribution Safety Score™ 9690
Expense ratio0.15%0.03%
AUM$106B$230B
Distribution frequencyQuarterlyQuarterly
Underlying indexNASDAQ-100 IndexMorningstar US Large Cap Growth Index
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
Beta1.181.26
Last dividend$0.3520$0.0923
Ex-dividend date06/22/202606/26/2026

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 yield0.48%0.42%
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Income calculator

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

Invesco
ETFs247
Total AUM$1008B

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$4703B

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 0.48% vs 0.42% 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 track different benchmarks: QQQM is linked to NASDAQ-100 Index while VUG tracks Morningstar US Large Cap Growth Index, which means their performance drivers differ.

VUG is the larger fund by assets ($230B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQM would generate roughly $4.00/month, while VUG would produce $3.50/month, at current distribution rates. Both pay quarterly distributions.

QQQM yield0.48%
VUG yield0.42%
Monthly diff on $10K$0.50

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 1.26 for VUG, making QQQM the less volatile of the two by this measure.

QQQM beta1.18
VUG beta1.26

Fund details

QQQM is managed by Invesco (launched 10/13/2020) with $106B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $230B in assets.

QQQM AUM$106B
VUG AUM$230B
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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 0.42% and 0.48% as of August 2026. They share mega-cap growth names. Holding both doubles that overlap.

What is the current distribution yield for QQQM and VUG?

QQQM currently distributes 0.48% and VUG 0.42%, based on fund data updated August 2026. Distribution yield 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 96, 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 $4.00 per month ($48.00 annually). The same in VUG would produce about $3.50 per month ($42.00 annually).

Which has performed better historically, QQQM or VUG?

QQQM has outpaced VUG over the trailing twelve months, posting a 24.99% total return against 14.56%. The lead holds up over 5 years too: QQQM has compounded at 15.19% a year, against 12.77% 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 August 16, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

QQQM and VUG are both large-cap growth ETFs tracking U.S. equity indexes, but they differ fundamentally in composition and breadth. QQQM tracks the NASDAQ-100 Index, which concentrates on 100 large-cap stocks—primarily technology and internet companies—while VUG tracks the CRSP US Large Cap Growth Index, a much broader universe of growth-oriented large-cap stocks across all sectors. This makes QQQM a narrower, tech-heavy bet and VUG a more diversified growth exposure.

How they differ

The biggest difference is index composition: QQQM's 100-name NASDAQ-100 index skews heavily toward technology and internet firms, while VUG's CRSP index holds hundreds of large-cap growth stocks across sectors, diluting any single industry's weight. Second, QQQM's beta of 1.18 sits below VUG's 1.26, suggesting QQQM moves slightly less with broad market swings despite its tech concentration—likely because the NASDAQ-100 includes some steadier megacap names that dampen volatility relative to VUG's growth-weighted methodology. Third, VUG's expense ratio of 0.04% undercuts QQQM's 0.15% by 11 basis points; over 20 years on a $100,000 investment, that gap compounds into meaningful drag on QQQM, though QQQM's $104 billion AUM still offers ample liquidity.

Who each is best for

  • QQQM: Fits investors seeking concentrated exposure to large-cap technology and internet growth, comfortable with sector concentration in exchange for potential higher upside during periods of tech sector strength.
  • VUG: Fits investors who want broad large-cap growth exposure across all sectors with lower fees, preferring diversification over the concentrated tech tilt of NASDAQ-100 tracking.

Key risks to know

  • Sector concentration risk (QQQM): The NASDAQ-100's heavy weighting in technology and internet stocks means QQQM's returns will be disproportionately affected by sector performance swings; downturns in tech hit much harder than a diversified large-cap growth fund would experience.
  • Higher beta sensitivity (VUG): VUG's beta of 1.26 indicates it amplifies broad market moves more than QQQM, meaning VUG will decline more steeply in market corrections and rise more sharply in rallies—a relevant tradeoff for long-term holders.
  • Fee drag over decades (QQQM): While 11 basis points may seem small, QQQM's 0.15% expense ratio compounds into measurable underperformance relative to VUG across multiyear holding periods, particularly in flat or low-return market environments.
  • Index overlap uncertainty: Both track growth-oriented large caps and likely hold many of the same megacap technology stocks; their returns may correlate more closely than their different strategies suggest, limiting diversification if held together.

Bottom line

If you want concentrated exposure to large-cap tech and internet growth and accept higher sector risk, QQQM's narrower index and 0.15% expense ratio deliver that focus; if you prefer broad large-cap growth diversification and the lowest possible costs, VUG's wider index and 0.04% expense ratio align with that profile. Past performance of either index does not predict future results.

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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