🤝 BFF Take
VUG for Cheap Broad Growth. QQQM for a Deliberate Nasdaq Tilt.
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.
📋 Quick Takeaways
💰VUG costs 0.04% ($4/yr per $10K). QQQM costs 0.15% ($15/yr per $10K). VUG is 3.75x cheaper.
📦VUG: ~200 large-cap growth stocks (Nasdaq + NYSE). QQQM: exactly 100 Nasdaq-listed non-financial companies.
🎯Default growth tilt: VUG. Want a specific Nasdaq-100 mandate? QQQM. Both are tech-heavy. QQQM more so.
📊 Data-Based Take: VUG 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
QQQM
Invesco Nasdaq-100 ETF
📋 VUG vs QQQM — Key Facts Side by Side
| Metric |
VUG |
QQQM |
| Fund Name |
Vanguard Growth ETF |
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 |
$130B |
$35B |
| Holdings |
200 |
100 |
| Inception |
2004 |
2020 |
| 1-Year Return |
+35.20% |
+38.10% |
| 3-Year Return |
+12.10% |
+13.50% |
| 5-Year Return |
+19.00% |
— |
| Avg Bid-Ask Spread |
0.00% |
0.01% |
Data 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.
🎯 Should You Buy VUG or QQQM?
Choose if...
VUG
- You want the lowest fees — saves ~$11/yr per $10K vs QQQM
- You want broader diversification (200 holdings vs 100)
- You want tech-heavy large-cap growth exposure via CRSP US Large Cap Growth Index
Choose if...
QQQM
- You want tech-heavy large-cap growth exposure via Nasdaq-100 Index
- You already use Invesco and prefer staying within their fund family
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❓ VUG vs QQQM — Frequently Asked Questions
What is the difference between VUG and QQQM?
VUG tracks the CRSP US Large Cap Growth Index across about 200 large-cap growth companies listed on any US exchange, charging 0.04%. QQQM tracks the Nasdaq-100 Index: exactly the 100 largest non-financial Nasdaq-listed companies, charging 0.15%. QQQM is more concentrated in technology (about 60% tech) because the Nasdaq index has a technology-company bias. Both funds hold Apple, Microsoft, Nvidia, and Amazon as their top positions.
Is QQQM the same as QQQ?
Yes, effectively. QQQM and QQQ track the same Nasdaq-100 Index with the same holdings. QQQM charges 0.15% vs QQQ's 0.20%, and QQQM was designed for long-term buy-and-hold investors. QQQ has higher daily trading volume and is better suited for traders or short-term positions. For anyone holding long-term, QQQM is the cheaper and better version of QQQ.
VUG vs QQQM: which has better performance?
QQQM has generally outperformed VUG in periods dominated by Nasdaq mega-cap tech companies, because its pure Nasdaq mandate provides more concentrated exposure to the highest-performing tech stocks. VUG has underperformed QQQM in those tech-led bull markets but provides more balanced growth exposure. Over time, whether QQQM or VUG wins depends heavily on whether the Nasdaq-100's tech concentration continues to be rewarded.
Can I hold VUG and QQQM together?
You can, but the overlap is very high. Both funds hold most of the same mega-cap tech stocks. Adding QQQM to a VUG position mostly increases your concentration in the Nasdaq's top holdings without adding diversification. If you want more tech exposure than VUG provides, replacing some VUG with QQQM is more sensible than holding both side by side.
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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.