VUG vs QQQ
Vanguard Growth (VUG) vs NASDAQ 100 (QQQ) — Two popular ways to invest in growth stocks
Understanding VUG and QQQ
VUG (Vanguard Growth ETF) tracks the CRSP US Large Cap Growth Index, holding approximately 200 large-cap US growth stocks. It uses factor-based selection criteria (high earnings growth, low dividend yield) to identify growth companies across all exchanges and sectors, including financials.
QQQ (Invesco QQQ Trust) tracks the NASDAQ-100 Index — the 100 largest non-financial companies listed on the NASDAQ exchange. This creates a heavily tech-concentrated portfolio since NASDAQ attracts technology, biotech, and innovative companies.
The core trade-off: VUG offers broad growth exposure at a fraction of the cost (0.04% vs 0.20%), while QQQ delivers concentrated exposure to NASDAQ's tech giants. Over 10 years, QQQ has returned +507.83% compared to VUG's +359.22% — tech concentration has rewarded QQQ investors, but with higher volatility.
Head to Head
Both VUG and QQQ target growth stocks, but they differ in methodology and cost. VUG uses factor-based selection with a rock-bottom expense ratio, while QQQ captures NASDAQ's tech-heavy ecosystem. Compare the metrics below.
| Metric | VUG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.18% | VUG |
| Total Assets | $335.9B | $395.0B | QQQ |
| Number of Holdings | ~200 | ~100 | VUG |
| 1 Year Return | +21.81% | +27.41% | QQQ |
| 5 Year Return | +79.81% | +96.24% | QQQ |
| 10 Year Return | +359.22% | +507.83% | QQQ |
| Volatility (3Y) | 15.0% | 14.3% | QQQ |
| Max Drawdown | -47.2% | -81.1% | VUG |
| Current Price | $N/A | $593.72 | — |
Growth of $10,000
The table below shows what $10,000 invested at different points in time would be worth today. The chart visualizes long-term growth starting from the same inception date for both ETFs.
Monthly Returns Comparison
The heatmaps below show month-by-month returns for both ETFs. Green indicates positive months, red indicates negative. Since both are growth-focused, you'll notice similar patterns, but QQQ's tech concentration often produces more pronounced moves in either direction.
VUG Monthly Returns
QQQ Monthly Returns
Key Differences
VUG (Vanguard Growth)
- • Tracks CRSP US Large Cap Growth Index
- • ~200 large-cap growth stocks
- • Much lower expense ratio (0.04%)
- • Includes financials and all sectors
- • Factor-based growth selection
QQQ (NASDAQ 100)
- • Tracks 100 largest NASDAQ non-financials
- • More concentrated (~100 holdings)
- • Higher expense ratio (0.20%)
- • Excludes financials entirely
- • Exchange-based selection (NASDAQ)
The Bottom Line
Choose VUG if you want broader growth exposure with a much lower expense ratio. Choose QQQ if you want concentrated exposure to NASDAQ's largest tech-focused companies. VUG is more cost-efficient; QQQ is more tech-concentrated and higher risk/reward.
Frequently Asked Questions
What is the difference between VUG and QQQ?
VUG tracks large-cap growth stocks across all US exchanges using factor-based selection, while QQQ tracks the 100 largest non-financial NASDAQ companies. VUG is more diversified and cheaper; QQQ is more tech-concentrated.
Which is better: VUG or QQQ?
VUG has a significantly lower expense ratio (0.04% vs 0.20%) and more holdings. QQQ has historically slightly outperformed due to tech concentration, but with higher volatility. VUG is better for cost-conscious investors; QQQ for tech bulls.
Does VUG or QQQ have more tech stocks?
QQQ is more tech-concentrated since it only holds NASDAQ companies and excludes financials. VUG also has significant tech exposure but is more balanced across growth sectors including healthcare and consumer discretionary.
Should I own both VUG and QQQ?
There's significant overlap between VUG and QQQ (both hold Apple, Microsoft, etc.), so owning both may be redundant. Most investors choose one or the other based on expense ratio preference and desired tech concentration.
Other Growth & NASDAQ 100 ETFs
VUG and QQQ aren't the only growth ETF options:
Growth ETF Alternatives
- VOOG — Vanguard S&P 500 Growth. Similar to VUG but limited to S&P 500 growth stocks.
- IWF — iShares Russell 1000 Growth. BlackRock's large-cap growth ETF.
- MGK — Vanguard Mega Cap Growth. Focuses on the largest growth names only.
- SCHG — Schwab US Large-Cap Growth. Low-cost Schwab alternative (0.04%).
NASDAQ 100 Alternatives
- QQQM — Invesco NASDAQ 100 ETF. Same index as QQQ, lower fees (0.15%).
- ONEQ — Fidelity NASDAQ Composite ETF. ~1,000 NASDAQ stocks.
- TQQQ — ProShares UltraPro QQQ. 3x leveraged. Short-term only.
- FNCMX — Fidelity NASDAQ Composite Fund. Mutual fund option.
More QQQ Comparisons
Last updated: 3/15/2026