Comparing Two of the Top Buy-and-Hold ETFs for Retail Investors: QQQ vs. VOO

2 weeks ago 14

Jake Lerch, The Motley Fool

Thu, December 4, 2025 astatine 9:03 AM CST 5 min read

VOO charges a overmuch little disbursal ratio and offers a higher dividend output than QQQ
QQQ has outperformed VOO implicit the past twelvemonth and 5 years but with deeper humanities drawdowns
VOO spreads hazard crossed much sectors and holdings, portion QQQ leans heavy connected exertion stocks
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The Invesco QQQ Trust, Series 1 (QQQ) stands retired for its tech-heavy absorption and caller performance, portion the Vanguard S&P 500 ETF (VOO) offers broader diversification, little fees, and a higher yield.

Both QQQ and VOO are among the astir fashionable exchange-traded funds successful the U.S., but they service antithetic concern priorities. QQQ tracks the NASDAQ-100 Index and emphasizes large-cap technology, portion VOO tracks the S&P 500 Index, representing the broader U.S. banal market. Here’s however they comparison connected cost, returns, risk, and what’s inside.

Metric

QQQ

VOO

Issuer	Invesco	Vanguard
Expense ratio	0.20%	0.03%
1-yr instrumentality (as of 2025-11-28)	21.5%	13.5%
Dividend yield	0.5%	1.1%
Beta	1.10	1.00
AUM	$403.0 billion	$1.5 trillion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VOO looks much affordable with its 0.03% disbursal ratio, undercutting QQQ’s 0.20% fee, and besides stands retired for a higher dividend yield, which could entreaty to investors seeking income alongside growth.

Metric

QQQ

VOO

Max drawdown (5 y)	-35.12%	-24.52%
Growth of $1,000 implicit 5 years	$2,067	$1,889

VOO tracks the S&P 500 Index, holding 505 companies and offering vulnerability crossed sectors: 36% successful technology, 13% successful fiscal services, and 11% successful user cyclicals. Its apical positions see NVIDIA (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT), each representing little than 0.1% of the fund. With implicit 15 years successful the market, VOO whitethorn entreaty to investors seeking broad, low-cost sum of the U.S. large-cap universe.

In contrast, QQQ provides a much concentrated stake connected large-cap growth, with 54% successful technology, 17% successful connection services, and 13% successful user cyclicals. Its largest holdings—NVIDIA, Apple, and Microsoft—carry somewhat higher idiosyncratic weights than successful VOO. QQQ’s narrower absorption means greater sensitivity to tech assemblage swings, portion VOO’s breadth spreads hazard much widely.

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Simply put, these are 2 of my favourite ETFs. The Invesco QQQ Trust, Series 1 (QQQ) and the Vanguard S&P 500 ETF (VOO) are some compelling concern options, but let's interruption down what makes each 1 basal out.