Dividend comparison
VOO vs QQQ: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard S&P 500 ETF and Invesco QQQ Trust, Series 1, side by side. Updated October 24, 2026.
- Fees. VOO is cheaper at 0.03% a year versus 0.18% for QQQ. On $10,000 that is $15 a year less in fees.
- Income. VOO pays more income, yielding 1.06% over the last twelve months versus 0.54% for QQQ. That is about $53 more a year on $10,000. VOO pays quarterly, QQQ pays annual.
- Performance. Over the last 5 years, QQQ returned 93.8% versus 80.4% for VOO, with dividends reinvested. $10,000 would have grown to $19,382 in QQQ and $18,036 in VOO.
- Risk. QQQ has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -35.1%, against -24.5% for VOO.
- Diversification. VOO holds 505 positions and QQQ holds 102. The ten largest positions make up 39.1% of VOO and 47.1% of QQQ.
- Overlap. At least 51% of the two portfolios overlap by weight, across 36 shared holdings.
- Dividend growth. QQQ grew its yearly payout 13.3% a year over the last 4 years, versus 6.8% for VOO.
- Size. VOO is the larger fund with $1.7 trillion in assets, against $489.6 billion for QQQ.
Bottom line: VOO fits better if you care most about lower fees, more income today, smaller drawdowns and broader diversification. QQQ fits better if you care most about stronger 5-year returns and faster dividend growth.
| Metric | VOO Vanguard S&P 500 ETF | QQQ Invesco QQQ Trust, Series 1 |
|---|---|---|
| Dividend yield (TTM) | 1.06% | 0.54% |
| Dividend / share (TTM) | $7.43 | $3.79 |
| Payout frequency | Quarterly | Annual |
| Last dividend | $1.8226 on Sep 30, 2026 | $0.7514 on Oct 8, 2026 |
| Ex-dividend date | Sep 28, 2026 | Dec 21, 2026 |
| Next payment | — | $0.7941 on Dec 28, 2026 |
| Dividend growth (CAGR) | 6.8% over 4 yrs | 13.3% over 4 yrs |
| Price | $698.58 | $704.40 |
| Dividend growth streak | 5 years | — |
| Beta | 1.01 | 1.23 |
| Max drawdown (5Y) | -24.5% | -35.1% |
| Market cap | $1.70T | $479.05B |
| Exchange | AMEX | NASDAQ |
| Expense ratio | 0.03% | 0.18% |
| Assets under management | $1.70T | $489.57B |
| Number of holdings | 505 | 102 |
| Top 10 concentration | 39.1% | 47.1% |
VOO
$8.86/mo
$106 /yr at 1.06% yield
QQQ
$4.48/mo
$54 /yr at 0.54% yield
| Year | VOO | QQQ |
|---|---|---|
| 2025 | $7.0678 | $2.7949 |
| 2024 | $6.7035 | $3.0623 |
| 2023 | $6.3572 | $2.3200 |
| 2022 | $5.9467 | $2.1351 |
| 2021 | $5.4367 | $1.6968 |
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
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
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
| Period | VOO | QQQ |
|---|---|---|
| 1 month | -1.22% | -5.75% |
| 3 months | 2.49% | -0.12% |
| Year to date | 12.96% | 14.95% |
| 1 year | 15.70% | 16.77% |
| 3 years | 88.03% | 101.84% |
| 5 years | 80.36% | 93.82% |
- VOO
- QQQ
Both series indexed to 100 on 2021-10-22 using the adjusted closing price series. Past performance does not guarantee future results.
- VOO
- QQQ
| Largest shared holdings | VOO weight | QQQ weight |
|---|---|---|
| NVDANVIDIA Corp | 8.39% | 8.27% |
| AAPLApple Inc | 7.38% | 7.76% |
| MSFTMicrosoft Corp | 5.78% | 6.12% |
| AMZNAmazon.com Inc | 3.71% | 4.38% |
| GOOGLAlphabet Inc | 3.07% | 3.04% |
| AVGOBroadcom Inc | 2.54% | 2.48% |
| GOOGAlphabet Inc | 2.45% | 2.83% |
| METAMeta Platforms Inc | 2.43% | 3.21% |
| MUMicron Technology Inc | 1.83% | 4.41% |
| TSLATesla Inc | 1.52% | 3.14% |
VOO505 holdings total
Quick verdict
VOO fits better if you care most about lower fees, more income today, smaller drawdowns and broader diversification. QQQ fits better if you care most about stronger 5-year returns and faster dividend growth. 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.