QQQ and VOO are two of the most popular ETFs in the world, and they overlap more than people expect. VOO owns the 500 largest US companies across every sector. QQQ owns the 100 largest non-financial companies on the Nasdaq, which makes it much heavier in technology.
Key differences
- Holdings: VOO has about 500 stocks; QQQ about 100. Most of QQQ’s top holdings are also VOO’s top holdings.
- Sectors: QQQ is roughly half technology and has no banks. VOO is spread across tech, health care, financials, industrials, energy and more.
- Fees: VOO costs about 0.03% a year. QQQ costs about 0.20%. QQQM tracks the same index as QQQ for less.
- Dividends: both pay quarterly; VOO’s yield is usually a bit higher.
Returns and risk
QQQ has beaten VOO over much of the last 15 years because large technology companies grew fastest. The trade-off is bigger drops: the Nasdaq-100 lost most of its value from 2000 to 2002 and fell about a third in 2022, more than the S&P 500 both times. Past outperformance does not tell you which will lead next.
Which fits you
- One fund for the long term: VOO, for broader diversification and lower cost.
- A growth tilt: a core of VOO with a smaller slice of QQQ or QQQM.
- Already own VOO: adding QQQ raises your tech weight further, since you already own those companies.
For Canadian investors
Both trade in US dollars. Canadian-listed versions such as VFV (S&P 500) and ZQQ or XQQ (Nasdaq-100, currency-hedged) let you invest in Canadian dollars.
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Frequently asked questions
Is QQQ riskier than VOO?
Yes. It is more concentrated in one sector and has had deeper drops.
Should I hold both?
You can, but understand the overlap. A combination increases your exposure to the same large tech names.
This is general information, not investment advice. See also VOO vs SPY vs IVV and VTI vs VOO, and share your view on the $QQQ and $VOO pages.
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