QQQ vs. VOO — ETF Comparison - Stock Analysis (2024)

FAQs

QQQ vs. VOO — ETF Comparison - Stock Analysis? ›

Average Return. In the past year, QQQ returned a total of 39.00%, which is significantly higher than VOO's 30.85% return. Over the past 10 years, QQQ has had annualized average returns of 18.52% , compared to 12.78% for VOO. These numbers are adjusted for stock splits and include dividends.

The table demonstrates that the difference between SPY and QQQ is that the S&P 500 Index and SPY ETF provide much better options for diversification across economic sectors. Despite this, the tech sector accounts for over a third of assets in this fund and is actually 3 times more than the second largest sector.

VGT - Performance Comparison. In the year-to-date period, QQQ achieves a 10.93% return, which is significantly lower than VGT's 11.82% return. Over the past 10 years, QQQ has underperformed VGT with an annualized return of 18.58%, while VGT has yielded a comparatively higher 20.63% annualized return.

The QQQ ETF offers buy-and-hold investors low expenses and long-term growth potential with enough diversification to avoid the risks of betting on one company. On the downside, long-term investors in QQQ must deal with sector risk, possible overvaluation, and the absence of small caps.

In the past year, QQQ returned a total of 39.00%, which is significantly higher than VOO's 30.85% return. Over the past 10 years, QQQ has had annualized average returns of 18.52% , compared to 12.78% for VOO. These numbers are adjusted for stock splits and include dividends.

Invesco QQQ Market Price: YTD: 8.56%; 1YR: 39.27%; 3YR: 12.34%; 5YR: 20.62%; 10YR: 18.58%; Since Inception: 9.70%.

The Invesco QQQ Trust, long synonymous with tech, had a phenomenal year. But a less-discussed tech ETF, the SPDR NYSE Technology ETF, outperformed it in 2023.

Vanguard High Dividend Yield ETF (VYM)

The better Vanguard ETF for their needs is likely VYM, which delivers a higher 2.9% 30-day SEC yield by targeting the FTSE High Dividend Yield Index. It also charges the same expense ratio as VIG does, at 0.06%.

Etfs . USA . Invesco QQQ Trust competes with SPDR SP, Vanguard, NVIDIA, SPDR Dow, and McDonalds; as well as few others. Analyzing Invesco QQQ competition allows you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions.

Should I hold QQQ long term? ›

QQQ appears to be the single best long-term investment option for investors seeking total returns due to its ability to expose holders to top U.S. companies on an ongoing basis. The Nasdaq 100 has consistently outperformed the S&P 500 in terms of total returns, making it a favorable choice for long-term investors.

Over the long run, they do compound—those fee differences—and investors have been putting a lot more money into VOO versus SPY. That is the reason why we view VOO slightly better than SPY. And that is just the basic approach, which is the lower the investor can pay, the better the investment is.

VOO has a consensus rating of Moderate Buy which is based on 402 buy ratings, 97 hold ratings and 5 sell ratings. What is VOO's price target? The average price target for VOO is $546.82. This is based on 504 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

VTI is a total U.S. market fund and holds more than 3,500 stocks. VTI is better diversified and benefits from small and mid-cap stocks that grow into large caps. VOO is less diversified, tracking the performance of the S&P 500 Index. VOO excludes small and mid-cap stocks.

SPY - Volatility Comparison. Invesco QQQ (QQQ) has a higher volatility of 4.84% compared to SPDR S&P 500 ETF (SPY) at 3.37%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure.

Bottom Line. The SPY ETF can be a convenient way to gain low-cost exposure to a diversified basket of large cap U.S. stocks. While SPY has multiple advantages, investors should remain aware of certain risks, such as lack of exposure to other areas of the market, before buying shares.

The following table shows the CAGR returns of the FAANG stocks over the past 5 years. The CAGR returns have been in the range of 23-40%. The significantly higher allocation towards FAANG stocks has ensured that Nasdaq 100 has outperformed S&P 500 index by a wide margin.

SPY, the world's most liquid ETF, trades $34 billion a day, on average. This gives investors the ability to tap into SPY's unmatched liquidity, which can help investors get in and out of markets fast, easily, and at a relatively attractive cost.