Dividend comparison
QQQ vs VIG: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Invesco QQQ Trust, Series 1 and Vanguard Dividend Appreciation ETF, side by side. Updated October 21, 2026.
- Fees. VIG is cheaper at 0.04% a year versus 0.18% for QQQ. On $10,000 that is $14 a year less in fees.
- Income. VIG pays more income, yielding 1.50% over the last twelve months versus 0.53% for QQQ. That is about $97 more a year on $10,000. QQQ pays annual, VIG pays quarterly.
- Performance. Over the last 5 years, QQQ returned 97.0% versus 61.4% for VIG, with dividends reinvested. $10,000 would have grown to $19,698 in QQQ and $16,136 in VIG.
- Risk. QQQ has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -35.1%, against -20.4% for VIG.
- Diversification. VIG holds 338 positions and QQQ holds 102. The ten largest positions make up 47.2% of QQQ and 34.9% of VIG.
- Overlap. 30% of the two portfolios overlap by weight, across 26 shared holdings.
- Dividend growth. QQQ grew its yearly payout 13.3% a year over the last 4 years, versus 7.5% for VIG.
- Size. QQQ is the larger fund with $487.5 billion in assets, against $127.7 billion for VIG.
Bottom line: QQQ fits better if you care most about stronger 5-year returns and faster dividend growth. VIG fits better if you care most about lower fees, more income today, smaller drawdowns and broader diversification.
| Metric | QQQ Invesco QQQ Trust, Series 1 | VIG Vanguard Dividend Appreciation ETF |
|---|---|---|
| Dividend yield (TTM) | 0.53% | 1.50% |
| Dividend / share (TTM) | $3.79 | $3.65 |
| Payout frequency | Annual | Quarterly |
| Last dividend | $0.7514 on Oct 8, 2026 | $0.9295 on Sep 30, 2026 |
| Ex-dividend date | Dec 21, 2026 | Sep 28, 2026 |
| Next payment | $0.7941 on Dec 28, 2026 | — |
| Dividend growth (CAGR) | 13.3% over 4 yrs | 7.5% over 4 yrs |
| Price | $717.63 | $243.07 |
| Dividend growth streak | — | 12 years |
| Beta | 1.23 | 0.82 |
| Max drawdown (5Y) | -35.1% | -20.4% |
| Market cap | $479.05B | $127.69B |
| Exchange | NASDAQ | AMEX |
| Expense ratio | 0.18% | 0.04% |
| Assets under management | $487.46B | $127.70B |
| Number of holdings | 102 | 338 |
| Top 10 concentration | 47.2% | 34.9% |
QQQ
$4.40/mo
$53 /yr at 0.53% yield
VIG
$12.50/mo
$150 /yr at 1.50% yield
| Year | QQQ | VIG |
|---|---|---|
| 2025 | $2.7949 | $3.5580 |
| 2024 | $3.0623 | $3.3791 |
| 2023 | $2.3200 | $3.2081 |
| 2022 | $2.1351 | $2.9725 |
| 2021 | $1.6968 | $2.6601 |
Current income is low and outside your control, so these need pairing with something else if the portfolio has to produce cash today.
What QQQ vs VIG actually do
The index is modified market-cap weighted and excludes financials by rule, which is why it lands so heavily in technology, communication services and consumer discretionary names. In December 2025 the fund converted from a unit investment trust to a conventional open-end fund and cut its fee, so it can now reinvest income and lend securities like its peers. It remains the most liquid Nasdaq-100 vehicle by a wide margin and the reference asset for a large share of the options-income products in this category.
Suits investors who want concentrated large-cap growth exposure and anyone who needs deep options liquidity. Dividends are incidental, so it does not answer an income mandate on its own.
Growth-tilted core, concentrated
It tracks the S&P U.S. Dividend Growers Index, which requires a decade of unbroken annual increases and then removes the top 25% of eligible names by yield. Screening out the highest payers is intentional: an unusually high yield often signals a stretched payout or a falling share price, and the index is built for durability rather than for current income. The result is a lower starting yield than most dividend funds and a portfolio that leans toward large, stable, profitable companies.
Suits a long-horizon investor who cares more about the dividend rising every year than about the size of the first payment. Not appropriate if you need meaningful cash flow from the position today.
Dividend growth, quality tilt
| Period | QQQ | VIG |
|---|---|---|
| 1 month | -0.43% | 2.56% |
| 3 months | 3.10% | 2.30% |
| Year to date | 17.09% | 10.60% |
| 1 year | 17.78% | 11.88% |
| 3 years | 105.61% | 64.31% |
| 5 years | 96.98% | 61.36% |
- QQQ
- VIG
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
- QQQ
- VIG
| Largest shared holdings | QQQ weight | VIG weight |
|---|---|---|
| MSFTMicrosoft Corp | 6.19% | 4.90% |
| AAPLApple Inc | 7.82% | 4.89% |
| AVGOBroadcom Inc | 2.49% | 4.30% |
| WMTWalmart Inc | 2.49% | 2.05% |
| CSCOCisco Systems Inc | 1.82% | 1.88% |
| COSTCostco Wholesale Corp | 1.90% | 1.79% |
| LRCXLam Research Corp | 1.47% | 1.82% |
| TXNTexas Instruments Inc | 1.09% | 1.13% |
| AMGNAmgen Inc | 0.99% | 1.01% |
| LINLinde PLC | 1.00% | 0.97% |
QQQ102 holdings total
Quick verdict
QQQ fits better if you care most about stronger 5-year returns and faster dividend growth. VIG fits better if you care most about lower fees, more income today, smaller drawdowns and broader diversification. Model the holding inside your real portfolio before deciding.
Frequently asked questions
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.