Dividend comparison

VUG vs QQQ: Which Is Better?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Morningstar Growth ETF and Invesco QQQ Trust, Series 1, side by side. Updated October 21, 2026.

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VUG vs QQQ: key differences
The short answer, from the latest data on this page.
  • Fees. VUG is cheaper at 0.03% a year versus 0.18% for QQQ. On $10,000 that is $15 a year less in fees.
  • Income. QQQ pays more income, yielding 0.53% over the last twelve months versus 0.39% for VUG. That is about $14 more a year on $10,000. VUG pays quarterly, QQQ pays annual.
  • Performance. Over the last 5 years, QQQ returned 97.0% versus 78.4% for VUG, with dividends reinvested. $10,000 would have grown to $19,698 in QQQ and $17,845 in VUG.
  • Risk. Their worst declines over the last 5 years were similar: -35.6% for VUG and -35.1% for QQQ from peak to trough.
  • Diversification. VUG holds 166 positions and QQQ holds 102. The ten largest positions make up 63.1% of VUG and 47.2% of QQQ.
  • Overlap. 61% of the two portfolios overlap by weight, across 51 shared holdings.
  • Dividend growth. QQQ grew its yearly payout 13.3% a year over the last 4 years, versus 6.9% for VUG.

Bottom line: VUG fits better if you care most about lower fees and broader diversification. QQQ fits better if you care most about stronger 5-year returns and faster dividend growth.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricVUG
Vanguard Morningstar Growth ETF
QQQ
Invesco QQQ Trust, Series 1
Dividend yield (TTM)0.39%0.53%
Dividend / share (TTM)$0.35$3.79
Payout frequencyQuarterlyAnnual
Last dividend$0.0910 on Sep 30, 2026$0.7514 on Oct 8, 2026
Ex-dividend dateSep 28, 2026Dec 21, 2026
Next payment—$0.7941 on Dec 28, 2026
Dividend growth (CAGR)6.9% over 4 yrs13.3% over 4 yrs
Price$88.67$717.63
Dividend growth streak3 years—
Beta1.271.23
Max drawdown (5Y)-35.6%-35.1%
Market cap$392.24B$479.05B
ExchangeAMEXNASDAQ
Expense ratio0.03%0.18%
Assets under management$392.20B$487.46B
Number of holdings166102
Top 10 concentration63.1%47.2%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

VUG

$3.25/mo

$39 /yr at 0.39% yield

QQQ

$4.40/mo

$53 /yr at 0.53% yield

Dividend history
Total dividends paid per share in each calendar year. VUG pays quarterly; QQQ pays annual.
YearVUGQQQ
2025$0.3351$2.7949
2024$0.3188$3.0623
2023$0.3003$2.3200
2022$0.2499$2.1351
2021$0.2567$1.6968
Strategy: Large-cap growth
Funds that hold the faster-growing half of the large-cap market, selected by measures like earnings growth, sales growth and price momentum. In practice that means heavy weights in technology and communication companies, with the largest few names often making up a third of the fund or more. Dividends are small because growth companies reinvest their cash instead of paying it out.

Concentration in a handful of mega-cap stocks makes these funds swing harder than the broad market in both directions, and they offer little current income.

What VUG vs QQQ actually do

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
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $17,845 in VUG and $19,698 in QQQ.
PeriodVUGQQQ
1 month0.01%-0.43%
3 months4.01%3.10%
Year to date9.40%17.09%
1 year10.23%17.78%
3 years99.93%105.61%
5 years78.45%96.98%
  • VUG
  • QQQ
59138217202120222023202420252026178197

Both series indexed to 100 on 2021-10-20 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.
  • VUG
  • QQQ
0%15%30%45%60%Technology60.2%58.8%Communication Services14.7%12.1%Consumer Cyclical9.8%10.2%Industrials4.4%5.5%Healthcare4.2%4.4%Consumer Defensive1.3%6.1%Financial Services3.9%0.2%Utilities0.8%1.1%Basic Materials0.4%1.0%Real Estate0.9%0.1%Other0.3%0.6%
VUG vs QQQ holdings overlap
61% overlap by weight, with 51 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
Largest shared holdingsVUG weightQQQ weight
NVDANVIDIA Corp13.48%8.17%
AAPLApple Inc12.50%7.82%
MSFTMicrosoft Corp9.74%6.19%
AMZNAmazon.com Inc4.26%4.42%
METAMeta Platforms Inc4.23%3.28%
GOOGLAlphabet Inc5.16%3.15%
GOOGAlphabet Inc4.09%2.94%
AMDAdvanced Micro Devices Inc2.66%3.79%
TSLATesla Inc2.65%3.02%
AVGOBroadcom Inc4.34%2.49%
Top 10 holdings
Largest positions by portfolio weight.

VUG166 holdings total

NameWeight
NVDANVIDIA Corp13.48%
AAPLApple Inc12.50%
MSFTMicrosoft Corp9.74%
GOOGLAlphabet Inc5.16%
AVGOBroadcom Inc4.34%
AMZNAmazon.com Inc4.26%
METAMeta Platforms Inc4.23%
GOOGAlphabet Inc4.09%
AMDAdvanced Micro Devices Inc2.66%
TSLATesla Inc2.65%

QQQ102 holdings total

NameWeight
NVDANVIDIA Corp8.17%
AAPLApple Inc7.82%
MSFTMicrosoft Corp6.19%
AMZNAmazon.com Inc4.42%
MUMicron Technology Inc4.41%
AMDAdvanced Micro Devices Inc3.79%
METAMeta Platforms Inc3.28%
GOOGLAlphabet Inc3.15%
TSLATesla Inc3.02%
GOOGAlphabet Inc2.94%

Quick verdict

VUG fits better if you care most about lower fees 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.

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Frequently asked questions

Is VUG or QQQ better for dividend income?
It depends on your goals. VUG currently yields 0.39% Trailing Twelve Months (TTM) while QQQ yields 0.53%. 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 VUG and QQQ?
Vanguard Morningstar Growth ETF (VUG) 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, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VUG or QQQ?
VUG has the lower expense ratio. VUG charges 0.03% a year and QQQ charges 0.18%, a difference of $15 a year on a $10,000 investment.
Which has performed better, VUG or QQQ?
Over the last 5 years, QQQ has the higher total return with dividends reinvested: VUG returned 78.4% and QQQ returned 97.0%. Past performance does not predict future returns.
Which is riskier, VUG or QQQ?
Measured by the worst peak-to-trough decline over the last five years, VUG has been riskier: VUG fell as much as 35.6% and QQQ as much as 35.1%. Their betas are 1.27 and 1.23.
How much do VUG and QQQ overlap?
About 61% of the two portfolios overlap by weight, across 51 shared holdings. The largest shared positions are NVDA, AAPL, MSFT. Holding both still adds meaningful diversification.
How often do VUG and QQQ pay dividends?
VUG pays quarterly and QQQ pays annual.
How much income does $10,000 in VUG vs QQQ generate?
At current TTM yields, $10,000 in VUG would generate roughly $3.25 per month ($39 annually). The same amount in QQQ would produce about $4.40 per month ($53 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VUG 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 VUG vs QQQ with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VUG 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.