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QQQ vs. VUG

Invesco QQQ Trust, Series 1

QQQ
$--
vs

Vanguard Growth ETF

VUG
$--

Correlation

0.99
QQQInvesco QQQ Trust, Series 1
VUGVanguard Growth ETF

What is QQQ?

Invesco QQQ is an exchange-traded fund based on the Nasdaq-100 Index. The Fund will, under most circumstances, consist of all of stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The Fund and the Index are rebalanced quarterly and reconstituted annually.

Snapshot
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QQQ Invesco QQQ Trust, Series 1
VUG Vanguard Growth ETF
Inception date
Mar 10 1999
Jan 26 2004
Expense ratio
0.20%
0.04%
QQQ has a higher expense ratio than VUG by 0.16%. This can indicate that it’s more expensive to invest in QQQ than VUG.
Type
US Equities
US Equities
QQQ targets investing in US Equities, while VUG targets investing in US Equities.
Fund owner
Invesco
Vanguard
QQQ is managed by Invesco, while VUG is managed by Vanguard.
Volume (1m avg. daily)
$17,559,045,883
$205,784,508
Both QQQ and VUG are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$197,956,569,440
$89,278,316,853
QQQ has more assets under management than VUG by $108,678,252,587. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
Nasdaq 100 Index
CRSP U.S. Large Cap Growth Index
QQQ is based off of the Nasdaq 100 Index, while VUG is based off of the CRSP U.S. Large Cap Growth Index
Inverse/Leveraged
No
No
QQQ and VUG use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
QQQ and VUG both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
No
No
QQQ and VUG may offer dividends. The frequency and yield of the dividend may not be the same.
Prospectus
QQQ may issue a K1, while VUG does not. You can find non-K1 alternatives for QQQ in its “Related ETFs” section.
QQQ and VUG’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

Automated Strategies
Related toQQQ

#BTD

Buy the Dips: Nasdaq 100

Category

Featured, Technology Focus

Risk Rating

Aggressive

Automated Strategies
Related toVUG

#BTD

Buy the Dips: Nasdaq 100

Category

Featured, Technology Focus

Risk Rating

Aggressive

Create your own algorithmic
trading strategy

Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

**

We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.