🤝 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.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
VGT
Vanguard Information Technology ETF
📋 QQQ vs VGT — Key Facts Side by Side
| Metric |
QQQ |
VGT |
| Fund Name |
Invesco QQQ Trust |
Vanguard Information Technology ETF |
| 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 |
$313B |
$72B |
| Holdings |
101 |
310 |
| Inception |
1999 |
2004 |
| 1-Year Return |
+20.50% |
+24.50% |
| 3-Year Return |
+9.10% |
+8.40% |
| 5-Year Return |
+19.80% |
+22.10% |
| Avg Bid-Ask Spread |
0.00% |
0.00% |
Data 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.
🎯 Should You Buy QQQ or VGT?
Choose if...
QQQ
- You want tech-heavy large-cap growth exposure via Nasdaq-100
- You already use Invesco and prefer staying within their fund family
Choose if...
VGT
- You want the lowest fees — saves ~$10/yr per $10K vs QQQ
- You want broader diversification (310 holdings vs 101)
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❓ QQQ vs VGT — Frequently Asked Questions
Is QQQ or VGT a better tech ETF?
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%).
Why does VGT have more holdings than QQQ?
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.
Does QQQ include non-tech companies?
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.
Which ETF is better for long-term growth — QQQ or VGT?
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 →
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.