⚖️ QQQ vs VGT Comparison · Free & No Signup

QQQ vs VGT: Nasdaq-100 vs Pure Tech — Key Differences

Both are tech-heavy and have delivered strong returns. But they track different indexes, have different fee structures, and carry different concentration risks.

💰 VGT is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict
🤝 BFF Take
VGT is Cheaper — QQQ is Broader and More Liquid

QQQ tracks the Nasdaq-100 — the 100 largest non-financial companies on the Nasdaq exchange — which includes tech, but also consumer names like Amazon and Tesla, and healthcare companies. VGT is a pure technology sector ETF that only holds companies classified as Information Technology, meaning it excludes those non-tech Nasdaq giants but goes deeper into semiconductors, software, and hardware. VGT charges 0.10% versus QQQ's 0.20%, a meaningful cost advantage for a fund with similar tech exposure. However, QQQ's massive $313B AUM and daily trading volume make it the world's most liquid ETF for active traders. For long-term investors who want pure tech sector exposure at lower cost, VGT has the edge. For those who want the Nasdaq-100 specifically — with its consumer and healthcare tilt — QQQ is the right tool.

📋 Quick Takeaways
💰VGT saves $10/year per $10K vs QQQ (0.10% vs 0.20%) — compounds meaningfully over time
🔀Different indexes: QQQ = Nasdaq-100 (includes Amazon, Tesla); VGT = pure IT sector (no consumer/healthcare)
🎯VGT for pure tech sector allocation; QQQ for Nasdaq-100 exposure with some diversification beyond tech
📊 Data-Based Take: VGT has the lower fee

Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.

Reviewed by a CFA® Charterholder · Data as of Jul 17, 2026 · Educational only, not financial advice
QQQ
Invesco QQQ Trust
Expense Ratio
0.20%
1-Year Return
+27.8%
AUM
$490.1B
Holdings
101
VGT
Vanguard Information Technology Index Fund ETF Shares
Expense Ratio
0.10% ✓
1-Year Return
+35.9%
AUM
$169.2B
Holdings
310

📋 QQQ vs VGT — Key Facts Side by Side

Metric QQQ VGT
Fund Name Invesco QQQ Trust Vanguard Information Technology Index Fund ETF Shares
Issuer Invesco Vanguard
Tracks Index Nasdaq-100 MSCI US IMI Info Tech 25/50
Expense Ratio 0.20% 0.10% ✓
Cost per $10K/yr $20.00 $10.00
AUM $490.1B $169.2B
Holdings 101 310
Inception 1999 2004
1-Year Return +27.76% +35.88%
3-Year Return +24.43% +28.34%
5-Year Return +15.45% +18.87%
Dividend Yield 0.41% 0.36%
Holdings Overlap See holdings overlap →
Avg Bid-Ask Spread 0.00% 0.00%

Expense ratio, AUM, and returns updated Jul 17, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 QQQ vs VGT — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...
QQQ
  • want tech-heavy large-cap growth exposure via Nasdaq-100
  • already use Invesco and prefer staying within one fund family
Often fits investors who...
VGT
  • want the lowest fees: saves ~$10/yr per $10K vs QQQ
  • want broader diversification (310 holdings vs 101)

💰 What the Fee Difference Actually Costs

Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.

Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.

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❓ QQQ vs VGT — Frequently Asked Questions

It depends on what you mean by "tech ETF." VGT is a purer technology sector fund tracking only Information Technology companies — semiconductors, software, hardware, and IT services. QQQ tracks the Nasdaq-100, which is tech-heavy but also includes Amazon (consumer), Tesla (consumer), Netflix (communication services), and others. For pure tech exposure, VGT is more precise. For the Nasdaq-100 specifically, QQQ is the definitive choice. VGT also has a lower expense ratio (0.10% vs 0.20%).
QQQ tracks only the 100 largest non-financial companies on the Nasdaq, making it a concentrated large-cap fund. VGT tracks the MSCI US IMI Information Technology 25/50 Index, which includes large, mid, and small-cap tech companies — giving it 300+ holdings. VGT's broader tech universe provides slightly more diversification within the technology sector compared to QQQ's large-cap Nasdaq concentration.
Yes. QQQ tracks the Nasdaq-100, not the technology sector. While it is heavily weighted toward tech (roughly 48%), it also includes significant allocations to consumer discretionary (Amazon, Tesla, Costco), communication services (Meta, Alphabet, Netflix), and healthcare. This makes QQQ more diversified than a pure tech ETF like VGT or XLK, but also means it's not a pure technology play.
Both have delivered exceptional long-term performance, and both are relatively concentrated bets on US technology and growth companies. VGT has slightly outperformed QQQ over most 5- and 10-year periods due to its purer tech concentration and lower fees, but both carry significant concentration risk. Neither is suitable as a standalone portfolio — they work best as a growth allocation within a broader diversified portfolio.

New to ETF investing? See answers to the most common ETF questions →

📄 QQQ & VGT Fact Sheets

QQQ Fact Sheet VGT Fact Sheet
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.