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VOO vs. QQQ

Vanguard S&P 500 ETF

VOO
$--
vs

Invesco QQQ Trust, Series 1

QQQ
$--

Correlation

0.94
VOOVanguard S&P 500 ETF
QQQInvesco QQQ Trust, Series 1

What is VOO?

Invests in stocks in the S&P 500 Index representing 500 of the largest U.S. companies. Goal is to closely track the index return which is considered a gauge of overall U.S. stock returns. Offers high potential for investment growth; share value rises and falls more sharply than that of funds holding bonds. More appropriate for long-term goals where your moneys growth is essential.

Snapshot
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VOO Vanguard S&P 500 ETF
QQQ Invesco QQQ Trust, Series 1
Inception date
Sep 07 2010
Mar 10 1999
Expense ratio
0.03%
0.20%
VOO has a lower expense ratio than QQQ by 0.17%. This can indicate that it’s cheaper to invest in VOO than QQQ.
Type
US Equities
US Equities
VOO targets investing in US Equities, while QQQ targets investing in US Equities.
Fund owner
Vanguard
Invesco
VOO is managed by Vanguard, while QQQ is managed by Invesco.
Volume (1m avg. daily)
$1,621,694,598
$17,559,045,883
Both VOO and QQQ 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
$325,714,712,538
$197,956,569,440
VOO has more assets under management than QQQ by $127,758,143,098. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
S&P 500 Index
Nasdaq 100 Index
VOO is based off of the S&P 500 Index, while QQQ is based off of the Nasdaq 100 Index
Inverse/Leveraged
No
No
VOO and QQQ 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
VOO and QQQ 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
VOO and QQQ may offer dividends. The frequency and yield of the dividend may not be the same.
Prospectus
QQQ may issue a K1, while VOO does not. You can find non-K1 alternatives for QQQ in its “Related ETFs” section.
VOO and QQQ’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 toVOO

#SPYMIN

SPY minimum drawdown

Category

Community

Risk Rating

Aggressive

Automated Strategies
Related toQQQ

#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.

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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.