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.
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.
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.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 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 | $498.9B | $177.9B |
| Holdings | 101 | 310 |
| Inception | 1999 | 2004 |
| 1-Year Return | +23.47% | +34.42% |
| 3-Year Return | +27.45% | +34.45% |
| 5-Year Return | +16.30% | +20.69% |
| Dividend Yield | 0.42% | 0.38% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.00% | 0.00% |
AUM and returns updated Oct 15, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
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📊 QQQ vs VGT: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want tech-heavy large-cap growth exposure via Nasdaq-100
- already use Invesco and prefer staying within one fund family
- 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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