Dividend comparison

VOO vs QQQ: Which Is Better for Income?

Side-by-side yield, projected income, and dividend fundamentals for Vanguard S&P 500 ETF and Invesco QQQ Trust, Series 1. Updated September 9, 2026.

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Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricVOO
Vanguard S&P 500 ETF
QQQ
Invesco QQQ Trust, Series 1
Dividend yield (TTM)1.04%0.42%
Dividend / share (TTM)$7.35$3.03
Price$704.07$718.36
Payout ratio (TTM)——
Dividend growth streak5 years—
Beta1.011.23
Market cap$1.72T$512.28B
ExchangeAMEXNASDAQ
Expense ratio0.03%0.18%
Assets under management$1.70T$483.78B
Number of holdings505103
Top 10 concentration37.6%46.7%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

VOO

$8.69/mo

$104 /yr at 1.04% yield

QQQ

$3.52/mo

$42 /yr at 0.42% yield

Strategy: Broad index
Low-cost funds that hold an entire market or index at market-cap weights and make no attempt to select securities. Return is the index return less a small fee, and dividends are a by-product of what the underlying companies choose to pay rather than an objective of the strategy. Differences between funds tracking the same index usually come down to fee, wrapper structure, share price and trading liquidity, not to holdings.

Current income is low and outside your control, so these need pairing with something else if the portfolio has to produce cash today.

What VOO vs QQQ actually do

VOO
Vanguard's S&P 500 tracker, holding the 500 large-cap US companies in the index at their market-cap weights.

It replicates the index in full and makes no attempt to pick winners, so its return is the index return less a very small fee. As an open-end fund it can lend securities and put incoming dividends back to work inside the portfolio between the quarterly payment dates. Dividends are whatever the underlying companies happen to pay, which means yield is an output of the strategy and never a target of it.

Suits almost any long-horizon US equity allocation, including as the growth engine sitting behind higher-yielding income positions. Not a fit for someone whose portfolio needs to produce meaningful current cash flow.

Core holding

QQQ
Invesco's fund tracking the Nasdaq-100, the largest non-financial companies listed on the Nasdaq exchange.

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

Performance
Trailing returns from the adjusted closing price series.
PeriodVOOQQQ
1 month-0.14%-0.68%
3 months2.01%-2.82%
Year to date13.58%17.31%
1 year20.07%25.59%
3 years77.56%93.73%
5 years82.44%94.16%
  • VOO
  • QQQ
60136211202120222023202420252026182194

Both series indexed to 100 on 2021-09-04 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • VOO
  • QQQ
0%15%30%45%59%Technology37.4%59.3%Communication Services9.9%12.4%Consumer Cyclical9.6%10.6%Healthcare9.1%4.1%Industrials8.2%4.3%Financial Services12.2%0.2%Consumer Defensive4.6%6.3%Energy3.4%0.5%Utilities2.1%1.2%Basic Materials1.6%1.0%Other1.9%0.2%
Top 10 holdings
Largest positions by portfolio weight.

VOO505 holdings total

NameWeight
NVDANVIDIA Corp7.55%
AAPLApple Inc7.04%
MSFTMicrosoft Corp5.36%
AMZNAmazon.com Inc4.13%
GOOGLAlphabet Inc3.24%
AVGOBroadcom Inc2.86%
GOOGAlphabet Inc2.62%
METAMeta Platforms Inc1.90%
JPMJPMorgan Chase & Co1.46%
BRK-BBerkshire Hathaway Inc1.46%

QQQ103 holdings total

NameWeight
NVDANVIDIA Corp8.75%
AAPLApple Inc7.69%
MSFTMicrosoft Corp5.95%
MUMicron Technology Inc4.79%
AMZNAmazon.com Inc4.42%
AMDAdvanced Micro Devices Inc3.31%
GOOGLAlphabet Inc3.16%
GOOGAlphabet Inc2.93%
TSLATesla Inc2.87%
METAMeta Platforms Inc2.83%

Quick verdict

VOO currently posts the higher TTM yield (1.04%). VOO yields 1.04%; QQQ yields 0.42%. Choose based on whether you prioritize current cash flow, dividend growth, or total return — then model the holding inside your real portfolio.

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Frequently asked questions

Is VOO or QQQ better for dividend income?
It depends on your goals. VOO currently yields 1.04% Trailing Twelve Months (TTM) while QQQ yields 0.42%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VOO and QQQ?
Vanguard S&P 500 ETF (VOO) is an ETF listed on AMEX. Invesco QQQ Trust, Series 1 (QQQ) is an ETF listed on NASDAQ. Side-by-side metrics on this page cover yield, price, payout ratio, dividend growth streak, beta, and market cap when available.
How much income does $10,000 in VOO vs QQQ generate?
At current TTM yields, $10,000 in VOO would generate roughly $8.69 per month ($104 annually). The same amount in QQQ would produce about $3.52 per month ($42 annually). Actual payouts vary with distribution changes and reinvestment.
Which has the higher dividend yield, VOO or QQQ?
VOO currently has the higher TTM dividend yield at 1.04%, compared with 0.42% for QQQ. Yield alone is not a complete measure of income quality — check payout ratio, streak, and NAV behavior.
Can I hold both VOO and QQQ?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VOO vs QQQ with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VOO and QQQ fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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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.