Compare and contrast key facts about Vanguard S&P 500 ETF (VOO) and Invesco QQQ (QQQ).
VOO and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both VOO and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VOO or QQQ.
VGT and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index.
If we compare the top 10 companies by weight in each of the indices, 7 of them will match. The correlation between stock prices of QQQ and VOO is 0.89. This is considered to be a high indicator.
If we compare SPY vs QQQ in terms of sector diversification, it is clear that QQQ, which is a NASDAQ-100 ETF, is strongly inferior to the SPY ETF. The tech sector (Electronic Technology + Technology Services) accounts for over 60% of its net assets.
And the QQQ is cheap, only charging 0.2%. There's an even cheaper version, the Invesco Nasdaq 100 ETF (QQQM), which charges just 0.15%. Compare that to the 0.75% charged by ARK Innovation (ARKK). And ARK Innovation gained just 2.6% annually in the past 10 years.
The Invesco QQQ Trust, long synonymous with tech, had a phenomenal year. But a less-discussed tech ETF, the SPDR NYSE Technology ETF, outperformed it in 2023.
Both funds are excellent, low-fee stock index fund options for your portfolio. QQQ holds only stocks listed on the Nasdaq stock exchange, which tend to be (but are not exclusively) technology stocks. VOO holds stocks that trade on both the Nasdaq and NYSE. QQQ also excludes financial stocks.
The number one biggest problem with Invesco QQQ Trust is that a small number of stocks make up a large percentage of the fund. That's not the fund's fault, it is simply tracking the index. But you can't ignore this lack of diversification.
If you only want to own the biggest and safest companies, choose VOO. If you want broader exposure and more diversification, choose VTI. Or, you could also invest in both, for example, by putting half in VOO and half in VTI.
QQQ appears to be the single best long-term investment option for investors seeking total returns due to its ability to expose holders to top U.S. companies on an ongoing basis. The Nasdaq 100 has consistently outperformed the S&P 500 in terms of total returns, making it a favorable choice for long-term investors.
QQQM is the lower cost version of QQQ, coming in with an expense ratio of 0.15% versus 0.20% for QQQ. It's had a bit of a slower build as well, but it's now over $13 billion in assets, making liquidity a non-issue and a better alternative to the tech giant ETF.
Despite its popularity, QQQ is very rarely the best choice for any investor. If you want a quick, easy way to invest in the high-flying tech stocks found in the Nasdaq-100 index, one of the most popular ETFs you could buy is the Invesco QQQ Trust ETF (QQQ -0.72%).
One of the few differences between these two funds is their expense ratio. The newer QQQM has a lower expense ratio by 0.05%. QQQM has an expense ratio of 0.15% compared to QQQ expense ratio of 0.20%. QQQM is a better option if you want to pay the lowest fees possible since its expense ratio is 25% smaller than QQQ.
The forecasted Invesco QQQ price at the end of 2024 is $457 - and the year to year change +12%. The rise from today to year-end: +8%. In the middle of 2024, we expect to see $433.
Invesco QQQ is an exchange-traded fund (ETF) that features Apple, Google, Microsoft, and more. Invest in QQQ. Fund details. Invesco QQQ ETF tracks the Nasdaq-100® Index — giving you access to the performance of the 100 largest non-financial companies listed on the Nasdaq.
In the past year, QQQ returned a total of 31.70%, which is significantly higher than VOO's 22.30% return. Over the past 10 years, QQQ has had annualized average returns of 17.98% , compared to 12.33% for VOO. These numbers are adjusted for stock splits and include dividends.
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