Expense ratios, sector focus, and volatility set these two powerhouse ETFs apart. Find out which aligns with your investment priorities. The Vanguard S&P 500 ETF (VOO +1.95%) and the Invesco QQQ Trust, Series 1 ETF (QQQ +2.11%) both track large-cap U.S. equities, yet their approaches and sector exposures diverge. This comparison weighs their fees, performance, risk, and portfolio makeup to help cl...
Expense ratios, sector focus, and volatility set these two powerhouse ETFs apart. Find out which aligns with your investment priorities. The Vanguard S&P 500 ETF (VOO +1.95%) and the Invesco QQQ Trust, Series 1 ETF (QQQ +2.11%) both track large-cap U.S. equities, yet their approaches and sector exposures diverge. This comparison weighs their fees, performance, risk, and portfolio makeup to help clarify which may appeal more based on an investor’s preferences for cost, yield, growth, and risk profile. Snapshot (cost & size) Metric VOO QQQ Issuer Vanguard Invesco Expense ratio 0.03% 0.18% 1-yr return (as of Feb. 7, 2026) 13.92% 15.12% Dividend yield 1.11% 0.45% Beta (5Y monthly) 1.00 1.12 AUM $839 billion $412 billion VOO is notably more affordable with a 0.03% expense ratio, while QQQ charges 0.18%. VOO also offers a higher dividend yield than QQQ, which may appeal to investors seeking income alongside growth. Performance & risk comparison Metric VOO QQQ Max drawdown (5 y) -24.53% -35.12% Growth of $1,000 over 5 years $1,782 $1,840 What's inside QQQ tracks the NASDAQ-100 with 101 holdings, and it has a pronounced tilt toward technology (making up 51% of assets) and communication services (17%). Its largest positions are Nvidia, Apple, and Microsoft. The fund, launched over 26 years ago, is concentrated in high-growth sectors and top names. VOO, in contrast, mirrors the broader S&P 500, with 35% of the fund allocated to technology, 13% to financial services, and 11% to communication services. Its top holdings are also Nvidia, Apple, and Microsoft, but at slightly lower weights. For more guidance on ETF investing, check out the full guide at this link. What this means for investors VOO and QQQ are both massive, popular funds that focus on large-cap stocks. While QQQ is more concentrated in tech, VOO offers greater diversification. QQQ’s biggest advantage lies in its potential for above-average returns. It leans more heavily on tech stocks compared to VOO, and it’s desi...