VUG vs QQQ Stock Comparison: AI Score, Valuation, Performance and Upside
VUG and QQQ both provide large-cap growth/tech tilted exposure but through different methodologies. VUG is a broad growth factor ETF at ultra-low cost including NYSE and Nasdaq growth companies. QQQ is the Nasdaq-100 index ETF with unmatched liquidity and options market but a higher expense ratio and exchange-based (not growth-factor) methodology.
VUG is the more cost-efficient growth factor ETF for long-term passive investors; QQQ is the superior choice for traders and institutions who need Nasdaq-100 liquidity and options depth.
QQQ holds the edge across 4 of 5 key metrics in this comparison. QQQ has delivered stronger 1-year price return (+40.68% vs +24.92% for VUG).
- →want broad US large-cap growth factor exposure at ultra-low 0.04% cost
- →prefer cross-exchange growth coverage including NYSE growth companies QQQ excludes
- →are building a growth-tilted passive portfolio at the lowest possible expense ratio
- →want more diversification across 200+ growth stocks versus QQQ's 100 Nasdaq companies
- →need the most liquid growth/tech proxy ETF for institutional trading and hedging
- →use Nasdaq-100 options extensively for income generation or portfolio protection
- →specifically want the 100 largest Nasdaq-listed companies as their growth benchmark
- →are indifferent to the higher 0.20% expense ratio for the liquidity and options market
| Metric | VUG | QQQ |
|---|---|---|
| ETF score | 82.0 | 84.0 |
| Latest close | $86.98 | $740.62 |
| 1M return | +0.80% | +5.57% |
| 6M return | +9.97% | +23.67% |
| 1Y return | +24.92% | +40.68% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | VUG | QQQ |
|---|---|---|
| 1Y ago | $12.55K (+25.5%) started 2025-06-18 | $14.14K (+41.4%) started 2025-06-18 |
| 5Y ago | $19.91K (+99.1%) started 2021-06-18 | $22.96K (+129.6%) started 2021-06-18 |
| 10Y ago | $57.54K (+475.4%) started 2016-06-20 | $79.38K (+693.8%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | VUG | QQQ |
|---|---|---|
| Expense ratio | 0.03% | 0.18% |
| Total assets (AUM) | $393.82B | $493.99B |
| Dividend yield | 0.37% | 0.38% |
| Trailing P/E | 33.57 | 34.00 |
| Beta | 1.23 | 1.23 |
| 52-week change | 24.92% | 40.68% |
| Metric | VUG | QQQ |
|---|---|---|
| 1Y return | +24.92% | +40.68% |
| 6M return | +9.97% | +23.67% |
| 1M return | +0.80% | +5.57% |
| 1Y Sharpe ratio | 1.15 | 1.78 |
| Beta | 1.23 | 1.23 |
| Dividend yield | 0.37% | 0.38% |
| 5Y CAGR | +14.13% | +17.37% |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | VUG | QQQ |
|---|---|---|---|
| 1Y | Growth | +24.92% | +40.68% |
| CAGR | +24.94% | +40.72% | |
| Sharpe ratio | 1.15 | 1.78 | |
| Max drawdown | 16.53% | 11.96% | |
| Max daily drop | 3.62% | 4.80% | |
| Max wkly drop | 5.95% | 6.79% | |
| 5Y | Growth | +93.62% | +122.74% |
| CAGR | +14.13% | +17.37% | |
| Sharpe ratio | 0.50 | 0.63 | |
| Max drawdown | 35.61% | 35.12% | |
| Max daily drop | 6.06% | 6.21% | |
| Max wkly drop | 12.34% | 11.98% | |
| 10Y | Growth | +429.27% | +639.84% |
| CAGR | +18.15% | +22.17% | |
| Sharpe ratio | 0.68 | 0.81 | |
| Max drawdown | 35.61% | 35.12% | |
| Max daily drop | 12.62% | 11.98% | |
| Max wkly drop | 16.93% | 16.20% |
| Category | VUG | QQQ |
|---|---|---|
| Fund name | Vanguard Growth Index Fund ETF Shares | Invesco QQQ Trust |
| Type | ETF | ETF |
| Expense ratio | 0.03% | 0.18% |
| Total assets (AUM) | $393.82B | $493.99B |
| Dividend yield | 0.37% | 0.38% |
- →0.04% expense ratio is 5x cheaper than QQQ's 0.20%
- →Broader growth factor coverage including NYSE-listed growth companies QQQ excludes
- →Multi-factor growth screen captures companies with diverse financial growth characteristics
- →Most liquid large-cap growth-proxy ETF with the deepest options market
- →Nasdaq-100 is the primary growth/tech benchmark reference
- →Includes 100 companies with high conviction concentration vs VUG's broader 200+ stocks
- →Growth factor exposure means significant tech concentration similar to QQQ
- →Growth stocks are highly sensitive to interest rate increases which reduce present value of future earnings
- →Lower liquidity and options market than QQQ for tactical strategies
- →0.20% expense ratio is 5x higher than VUG's 0.04%
- →Nasdaq listing requirement limits inclusion to Nasdaq-traded companies only
- →Not a pure growth factor fund — some QQQ components would not qualify as 'growth' by factor screens
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