Are you confused between VUG vs QQQ? If YES then don’t worry, we have you covered.
This post will walk you through the differences between Invesco QQQ Trust Vs Vanguard Growth (VUG).
There is no denying that both QQQ and VUG are the best investment option but when it comes to selecting the best among them, it is not that easy.
With that in mind, we have created a guide explaining the pros and cons of both VUG and QQQ.
Before we directly jump to VUG vs QQQ, let’s find out what they are and how they work.
Without any further ado, let’s get started:
What is VUG?
Vanguard Growth (VUG) is one of the most popular Investment companies in the United States of America.
The investment company created its first index mutual fund called Vanguard 500 Index Fund (VFIAX) way back in 1976.
Ten years after creating their first index mutual fund, they launched the Vanguard Total Bond Market Index Fund (VBTLX).
In the year 1994, Vanguard launched the Vanguard LifeStragedy Growth Fund (VASGX) investing in four index funds, which reportedly has a value of $19.4 billion as of April 2021.
Vanguard has invested a whopping amount in Stock, with just more than 80% invested in two stock funds, while the remaining 20% is invested in bond funds.
U.S News had recently revealed a list of 100 Large Growth Exchange Traded Fund (ETF)s and among them, only 31 were made into the list of Best Fit List and Vanguard Growth (VUG) was one of them.
Notably, the list highlighted the best passively managed funds for long-term investors. The list was created based on comparisons with Best Fit funds in this category.
VUG Top Holdings
Here are the top 10 holdings of the VUG ETF:
| Stock | VUG Share |
|---|---|
| Apple Inc | 10.13% |
| Microsoft Corp | 9.52% |
| Amazon.com Inc | 6.88% |
| Facebook Inc Class A | 3.89% |
| Alphabet Inc Class A | 3.43 |
| Alphabet Inc Class C | 3.22% |
| Tesla Inc | 2.44% |
| Nvidia Corp | 2.21% |
| Visa Inc Class A | 1.78% |
| PayPal Holdings Inc | 1.60% |
What Is QQQ?
The Invesco QQQ is a popular Exchange Traded Fund (ETF) that tracks the Nasdaq 100 Index.
Notably, the share price of QQQ will go down or up as the tech-heavy Nasdaq 100. Since it passively follows the index, the investors are given their shares when share witnesses rise but they should always be ready to bear the loss when it falls.
The majority of QQQ stock holdings are dominated by tech giants like Apple, Amazon, Google and Meta (Facebook).
What makes Invesco QQQ quite popular among investors is it lets them invest in the largest 100 non-financial companies listed on Nasdaq.
QQQ Top Holdings
Here are the top 10 holdings of the QQQ ETF:
| Stock | QQQ Share |
|---|---|
| Apple Inc | 11.27 |
| Microsoft Corp | 10.11% |
| Amazon.com Inc | 7.79% |
| Alphabet Inc Class C | 4.19% |
| Facebook Inc Class A | 4.04% |
| Tesla Inc | 3.90% |
| Alphabet Inc Class A | 3.87% |
| Nvidia Corp. (NVDA) | 3.78% |
| PayPal Inc. (PYPL) | 2.30% |
| Adobe Inc | 2.15% |
Once you know the basics of both investment companies, it is time to take a look at the differences.
QQQ vs VUG Differences
There are plenty of users who want to make an investment but they are having trouble finding the best option between VUG vs QQQ.
Irrespective of whether you choose VUG or QQQ, both offer the exchange-traded fund (ETF). The only difference is QQQ is offered by Invesco while VUG is offered by Vanguard.
When it comes to having the most number stocks, VUG comes first as it reportedly has around 300 different companies in the Index as compared to QQQ which reportedly has almost 100 companies in the Index.
Since VUG has a larger number of companies in the Index, you can consider investing in it but having a more number of companies in the Index does not necessarily mean that it will be beneficial to you.
Since VUG has more companies in the Index than QQQ, it will help you diversify your portfolio and might reduce the risk.
When it comes to their top holdings, you would not notice any major changes because the majority of them are tech giants.
What makes both QQQ and VUG massively popular in the US is they both don’t have minimal investment.
The best thing about the share of QQQ or VUG is you can buy their fractional shares with M1 Finance.
If you don’t have enough money to buy a full share of VUG or QQQ, I advise you to buy the fractional share of your desired investment company without paying any commission.
VUG vs QQQ Share Price Comparison
You can check out the share price of both QQQ or VUG here:
- VUG Share Price — 263.65 USD
- QQQ Share Price — 329.42 USD
When it comes to the value of their shares, QQQ is way higher than VUG. Yes, in February 2022, the value of one QQQ share is around $330 whereas the value of a VUG share is around $263.
Since the price of QQQ or VUG shares keeps changing and it is a bit difficult for us to keep you updated with the current price, I advise you to click on the following links to know the current share price of both companies.
VUG vs QQQ Performance Comparison
After finding the value of a share, let’s find out which company is performing better. The performance of these websites is determined based on the P/E ratio, dividend data, and risk metrics.
| VUG | QQQ | ||
|---|---|---|---|
| 1 Week Return | -5.52% | -5.07% | |
| 2 Week Return | -6.16% | -5.86% | |
| 1 Month Return | -3.27% | -3.87% | |
| 3 Month Return | -16.84% | -16.21% | |
| 26 Week Return | -10.46% | -9.48% | |
| YTD Return | -15.72% | -15.02% | |
| 1 Year Return | 5.04% | 5.35% | |
| 3 Year Return | 83.81% | 101.00% | |
| Beta | 1.03 | 1.03 | |
| P/E Ratio | 37.8 | 30.43 | |
| Annual Dividend Rate | $1.53 | $1.77 | |
| Dividend Date | 2021-09-24 | 2021-09-20 | |
| Dividend | $0.32 | $0.41 | |
| Annual Dividend Yield % | 0.49% | 0.45% | |
| 5 Day Volatility | 122.80% | 54.35% | |
| 20 Day Volatility | 32.37% | 32.57% | |
| 50 Day Volatility | 27.05% | 27.35% | |
| 200 Day Volatility | 22.97% | 23.05% | |
| Standard Deviation | 21.09% | 26.12% |
VUG vs QQQ: Which Growth ETF Is Better?
Answering which one is better between QQQ vs VUG is a bit difficult because both investment companies have been performing quite better.
QQQ might have fewer stocks but when it comes to its recent performances, it seems to have outperformed VUG in multiple sections.
Since both have almost top holdings and return rates, I would not call either VUG or QQQ the best one.
In my opinion, I would say both are amazing options to make an investment and live your dream life.
That’s all you need to know about QQQ vs VUG.