VUG vs QQQM: Broad Growth vs Nasdaq-100 Concentration
Both funds tilt heavily toward tech mega-caps. The difference is how concentrated you want to be and how much you pay for it. VUG holds 200 stocks at 0.04%. QQQM holds 100 at 0.15%.
VUG and QQQM overlap significantly. Both are dominated by Apple, Microsoft, Nvidia, Amazon, and Meta. But the differences matter. VUG tracks the CRSP US Large Cap Growth Index, holding about 200 large-cap growth stocks, including both Nasdaq and NYSE listings, at 0.04%. QQQM tracks exactly the 100 largest non-financial Nasdaq-listed companies at 0.15%. The Nasdaq screen concentrates QQQM more heavily in technology (about 60% vs VUG's roughly 50%) and excludes the largest financial companies. QQQM's 1-year and 5-year returns have been higher than VUG's in tech-dominated periods because the Nasdaq bias captures more pure-play tech. VUG is the better default for growth exposure: broader diversification, lower cost, and less sector concentration. QQQM is the right choice for an investor who specifically wants Nasdaq-100 exposure and is comfortable paying 0.15% for the tighter mandate.
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.
📋 VUG vs QQQM — Key Facts Side by Side
| Metric | VUG | QQQM |
|---|---|---|
| Fund Name | Vanguard Growth Index Fund ETF Shares | Invesco NASDAQ 100 ETF |
| Issuer | Vanguard | Invesco |
| Tracks Index | CRSP US Large Cap Growth Index | Nasdaq-100 Index |
| Expense Ratio | 0.04% ✓ | 0.15% |
| Cost per $10K/yr | $4.00 | $15.00 |
| AUM | $365.0B | $101.3B |
| Holdings | 200 | 100 |
| Inception | 2004 | 2020 |
| 1-Year Return | +18.32% | +30.48% |
| 3-Year Return | +23.86% | +26.25% |
| 5-Year Return | +12.96% | +15.68% |
| Dividend Yield | 0.39% | 0.43% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.00% | 0.01% |
Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 VUG vs QQQM — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the lowest fees: saves ~$11/yr per $10K vs QQQM
- want broader diversification (200 holdings vs 100)
- want tech-heavy large-cap growth exposure via CRSP US Large Cap Growth Index
- want tech-heavy large-cap growth exposure via Nasdaq-100 Index
- already use Invesco and prefer staying within one fund family
💰 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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❓ VUG vs QQQM — Frequently Asked Questions
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