VUG vs QQQ Stock Comparison: AI Score, Valuation, Performance and Upside
VUG and QQQ both provide large-cap growth/tech tilted exposure but through different methodologies. VUG is a broad growth factor ETF at ultra-low cost including NYSE and Nasdaq growth companies. QQQ is the Nasdaq-100 index ETF with unmatched liquidity and options market but a higher expense ratio and exchange-based (not growth-factor) methodology.
VUG is the more cost-efficient growth factor ETF for long-term passive investors; QQQ is the superior choice for traders and institutions who need Nasdaq-100 liquidity and options depth.
QQQ holds the edge across 3 of 5 key metrics in this comparison. QQQ has delivered stronger 1-year price return (+21.77% vs +12.34% for VUG).
- want broad US large-cap growth factor exposure at ultra-low 0.04% cost
- prefer cross-exchange growth coverage including NYSE growth companies QQQ excludes
- are building a growth-tilted passive portfolio at the lowest possible expense ratio
- want more diversification across 200+ growth stocks versus QQQ's 100 Nasdaq companies
- need the most liquid growth/tech proxy ETF for institutional trading and hedging
- use Nasdaq-100 options extensively for income generation or portfolio protection
- specifically want the 100 largest Nasdaq-listed companies as their growth benchmark
- are indifferent to the higher 0.20% expense ratio for the liquidity and options market
| Metric | VUG | QQQ |
|---|---|---|
| ETF scorei | 67.0 | 81.0 |
| Latest closei | $88.75 | $721.45 |
| 1M returni | +0.93% | +0.75% |
| 6M returni | +21.21% | +24.24% |
| 1Y returni | +12.34% | +21.77% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | VUG | QQQ |
|---|---|---|
| 1Y ago | $11.28K (+12.8%) started 2025-09-18 | $12.24K (+22.4%) started 2025-09-18 |
| 5Y ago | $18.92K (+89.2%) started 2021-09-20 | $20.93K (+109.3%) started 2021-09-20 |
| 10Y ago | $56.4K (+464.0%) started 2016-09-19 | $70.75K (+607.5%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | VUG | QQQ |
|---|---|---|
| Expense ratioi | 0.03% | 0.18% |
| Total assets (AUM)i | $384.53B | $488.98B |
| Dividend yieldi | 0.38% | 0.42% |
| Trailing P/Ei | 30.24 | 29.41 |
| Betai | 1.24 | 1.24 |
| 52-week change | 12.34% | 21.77% |
| Metric | VUG | QQQ |
|---|---|---|
| 1Y returni | +12.34% | +21.77% |
| 6M returni | +21.21% | +24.24% |
| 1M returni | +0.93% | +0.75% |
| 1Y Sharpe ratio | 0.49 | 0.87 |
| Betai | 1.24 | 1.24 |
| Dividend yieldi | 0.38% | 0.42% |
| 5Y CAGR | +13.00% | +15.24% |
Over the past year, VUG and QQQ have moved strongly in the same direction (correlation of 0.94), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | VUG | QQQ |
|---|---|---|---|
| 1Y | Growthi | +12.34% | +21.77% |
| CAGRi | +12.34% | +21.79% | |
| Volatilityi | 17.80% | 19.69% | |
| Sharpe ratioi | 0.49 | 0.87 | |
| Sortino ratioi | 0.71 | 1.27 | |
| Max drawdowni | 16.53% | 11.96% | |
| Current drawdowni | 1.60% | 3.21% | |
| Avg drawdowni | 4.04% | 3.15% | |
| Ulcer Indexi | 5.26% | 4.00% | |
| Max daily dropi | 3.62% | 4.80% | |
| Max wkly dropi | 5.95% | 6.79% | |
| 5Y | Growthi | +84.07% | +103.05% |
| CAGRi | +13.00% | +15.24% | |
| Volatilityi | 22.55% | 22.98% | |
| Sharpe ratioi | 0.46 | 0.54 | |
| Sortino ratioi | 0.65 | 0.77 | |
| Max drawdowni | 35.61% | 35.12% | |
| Current drawdowni | 1.60% | 3.21% | |
| Avg drawdowni | 10.16% | 9.18% | |
| Ulcer Indexi | 14.56% | 13.59% | |
| Max daily dropi | 6.06% | 6.21% | |
| Max wkly dropi | 12.34% | 11.98% | |
| 10Y | Growthi | +420.03% | +560.40% |
| CAGRi | +17.93% | +20.79% | |
| Volatilityi | 21.57% | 22.54% | |
| Sharpe ratioi | 0.67 | 0.75 | |
| Sortino ratioi | 0.94 | 1.07 | |
| Max drawdowni | 35.61% | 35.12% | |
| Current drawdowni | 1.60% | 3.21% | |
| Avg drawdowni | 6.62% | 6.23% | |
| Ulcer Indexi | 11.01% | 10.38% | |
| Max daily dropi | 12.62% | 11.98% | |
| Max wkly dropi | 16.93% | 16.20% |
| Category | VUG | QQQ |
|---|---|---|
| Fund name | Vanguard Morningstar Growth ETF | Invesco QQQ Trust |
| Type | ETF | ETF |
| Expense ratioi | 0.03% | 0.18% |
| Total assets (AUM)i | $384.53B | $488.98B |
| Dividend yieldi | 0.38% | 0.42% |
- 0.04% expense ratio is 5x cheaper than QQQ's 0.20%
- Broader growth factor coverage including NYSE-listed growth companies QQQ excludes
- Multi-factor growth screen captures companies with diverse financial growth characteristics
- Most liquid large-cap growth-proxy ETF with the deepest options market
- Nasdaq-100 is the primary growth/tech benchmark reference
- Includes 100 companies with high conviction concentration vs VUG's broader 200+ stocks
- Growth factor exposure means significant tech concentration similar to QQQ
- Growth stocks are highly sensitive to interest rate increases which reduce present value of future earnings
- Lower liquidity and options market than QQQ for tactical strategies
- 0.20% expense ratio is 5x higher than VUG's 0.04%
- Nasdaq listing requirement limits inclusion to Nasdaq-traded companies only
- Not a pure growth factor fund — some QQQ components would not qualify as 'growth' by factor screens
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