QQQ vs. VOO: Which Powerhouse ETF Is the Better Buy for Investors Right Now?

Both the Vanguard S&P 500 ETF (NYSEMKT:VOO) and the Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) are popular, large-cap U.S. equity exchange-traded funds (ETFs), but they instrumentality antithetic approaches.

VOO tracks the wide S&P 500, portion QQQ tracks the NASDAQ-100, which is much tech-focused. This examination examines cost, performance, risk, and portfolio creation to assistance investors find which enactment champion fits their goals.

Beta measures terms volatility comparative to the S&P 500. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VOO is much affordable connected fees with a little disbursal ratio than QQQ, and it besides offers a importantly higher dividend yield. These factors could marque VOO much charismatic to fee-conscious oregon income-focused investors.

QQQ tracks the NASDAQ-100, resulting successful a portfolio of 101 holdings with a dense tilt toward exertion (making up 53% of assets), connection services (17%), and user cyclical (13%). Its apical holdings are Nvidia, Apple, and Microsoft.

By comparison, VOO spreads its assets crossed 504 stocks successful the S&P 500. Technology accounts for 35% of the fund, followed by fiscal services astatine 13% and connection services astatine 11%. Its apical holdings reflector QQQ’s, but the broader assemblage premix whitethorn entreaty to those seeking much diversification.

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VOO and QQQ are some monolithic funds with agelong way records, focusing exclusively connected large-cap stocks. However, their chiseled approaches whitethorn entreaty to antithetic types of investors.

VOO is the much diversified of the two, tracking the S&P 500 and holding stocks crossed each marketplace sectors. This diversification helps bounds its hazard during marketplace downturns, arsenic it’s not arsenic heavy tilted toward immoderate 1 industry.

QQQ, connected the different hand, is overmuch much focused connected growth. The bulk of the money is allocated to tech stocks, which tin beryllium a double-edged sword. While tech tin beryllium lucrative, it’s besides notorious for its volatility.

Between these 2 ETFs, QQQ has experienced much volatility. It has a steeper maximum drawdown and a higher beta, indicating much terrible terms fluctuations than VOO. However, QQQ has besides outperformed VOO successful some 12-month and five-year full returns.