Both the Vanguard S&P 500 ETF (VOO 1.44%) and the Invesco QQQ Trust, Series 1 (QQQ 1.43%) are popular, large-cap U.S. equity exchange-traded funds (ETFs), but they take different approaches.
VOO tracks the broad S&P 500, while QQQ tracks the NASDAQ-100, which is more tech-focused. This comparison examines cost, performance, risk, and portfolio composition to help investors determine which option best fits their goals.
Snapshot (cost & size)
| Metric | VOO | QQQ |
|---|---|---|
| Issuer | Vanguard | Invesco |
| Expense ratio | 0.03% | 0.18% |
| 1-yr return (as of Feb. 2, 2026) | 15.79% | 20.13% |
| Dividend yield | 1.13% | 0.46% |
| Beta (5Y monthly) | 1.00 | 1.15 |
| AUM | $839 billion | $407 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
VOO is more affordable on fees with a lower expense ratio than QQQ, and it also offers a significantly higher dividend yield. These factors could make VOO more attractive to fee-conscious or income-focused investors.
Performance & risk comparison
| Metric | VOO | QQQ |
|---|---|---|
| Max drawdown (5 y) | -24.53% | -35.12% |
| Growth of $1,000 over 5 years | $1,853 | $1,945 |
What's inside
QQQ tracks the NASDAQ-100, resulting in a portfolio of 101 holdings with a heavy tilt toward technology (making up 53% of assets), communication services (17%), and consumer cyclical (13%). Its top holdings are Nvidia, Apple, and Microsoft.
By comparison, VOO spreads its assets across 504 stocks in the S&P 500. Technology accounts for 35% of the fund, followed by financial services at 13% and communication services at 11%. Its top holdings mirror QQQ’s, but the broader sector mix may appeal to those seeking more diversification.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
VOO and QQQ are both massive funds with long track records, focusing exclusively on large-cap stocks. However, their distinct approaches may appeal to different types of investors.
VOO is the more diversified of the two, tracking the S&P 500 and holding stocks across all market sectors. This diversification helps limit its risk during market downturns, as it’s not as heavily tilted toward any one industry.
QQQ, on the other hand, is much more focused on growth. The majority of the fund is allocated to tech stocks, which can be a double-edged sword. While tech can be lucrative, it’s also notorious for its volatility.
Between these two ETFs, QQQ has experienced more volatility. It has a steeper maximum drawdown and a higher beta, indicating more severe price fluctuations than VOO. However, QQQ has also outperformed VOO in both 12-month and five-year total returns.
The right choice for you will depend on your investing goals. If you’re looking for a more diversified ETF with a stronger history of stability, VOO’s S&P 500 focus could be more appealing. Those who are comfortable with more volatility in exchange for greater growth potential, though, may prefer QQQ.
