Key characteristics
| QQQ | VGT | |
|---|---|---|
| YTD Return | 54.34% | 52.54% |
| 1Y Return | 54.07% | 52.70% |
| 3Y Return (Ann) | 10.34% | 11.86% |
| 5Y Return (Ann) | 23.50% | 26.12% |
| 10Y Return (Ann) | 17.72% | 19.77% |
| Sharpe Ratio | 2.76 | 2.55 |
| Daily Std Dev | 18.25% | 19.19% |
| Max Drawdown | -82.98% | -54.63% |
Correlation
0.95
-1.001.00
The correlation between QQQ and VGT is 0.95, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
QQQ vs. VGT - Performance Comparison
The year-to-date returns for both stocks are quite close, with QQQ having a 54.34% return and VGT slightly lower at 52.54%. Over the past 10 years, QQQ has underperformed VGT with an annualized return of 17.72%, while VGT has yielded a comparatively higher 19.77% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
QQQ
VGT
Compare stocks, funds, or ETFs
QQQ vs. VGT - Dividend Comparison
QQQ's dividend yield for the trailing twelve months is around 0.57%, less than VGT's 0.65% yield.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QQQ Invesco QQQ | 0.57% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% | 1.26% |
VGT Vanguard Information Technology ETF | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% | 1.21% |
QQQ vs. VGT - Expense Ratio Comparison
QQQ has a 0.20% expense ratio, which is higher than VGT's 0.10% expense ratio.
QQQ
0.10%
0.00%2.15%
QQQ vs. VGT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ (QQQ) and Vanguard Information Technology ETF (VGT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
|---|---|---|---|---|---|
QQQ Invesco QQQ | 2.76 | ||||
VGT Vanguard Information Technology ETF | 2.55 |
QQQ vs. VGT - Sharpe Ratio Comparison
The current QQQ Sharpe Ratio is 2.76, which roughly equals the VGT Sharpe Ratio of 2.55. The chart below compares the 12-month rolling Sharpe Ratio of QQQ and VGT.
QQQ
VGT
QQQ vs. VGT - Drawdown Comparison
The maximum QQQ drawdown for the period was -13.83%, roughly equal to the maximum VGT drawdown of -13.05%. The drawdown chart below compares losses from any high point along the way for QQQ and VGT
QQQ
VGT
QQQ vs. VGT - Volatility Comparison
Invesco QQQ (QQQ) and Vanguard Information Technology ETF (VGT) have volatilities of 3.30% and 3.33%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
QQQ
VGT
As an expert deeply immersed in the world of financial markets and investment analysis, I bring a wealth of experience and knowledge to dissect the key characteristics presented in the provided data. My understanding spans not only the numerical values but also the broader implications and strategic considerations that arise from these metrics.
Let's delve into the intricacies of the given information:
Key Characteristics:
-
Return Metrics:
- QQQ (Invesco QQQ):
- 1Y Return: 54.07%
- 3Y Return (Ann): 10.34%
- 5Y Return (Ann): 23.50%
- 10Y Return (Ann): 17.72%
- VGT (Vanguard Information Technology ETF):
- 1Y Return: 52.70%
- 3Y Return (Ann): 11.86%
- 5Y Return (Ann): 26.12%
- 10Y Return (Ann): 19.77%
- QQQ (Invesco QQQ):
-
Risk and Volatility:
- Sharpe Ratio:
- QQQ: 2.76
- VGT: 2.55
- Daily Std Dev:
- QQQ: 18.25%
- VGT: 19.19%
- Max Drawdown:
- QQQ: -82.98%
- VGT: -54.63%
- Correlation:
- QQQ vs. VGT: 0.95 (high positive relationship)
- Sharpe Ratio:
Performance Comparison:
- The correlation coefficient of 0.95 between QQQ and VGT suggests a strong positive relationship, raising concerns about portfolio diversification.
- Year-to-date returns are close, but over the last decade, VGT outperformed QQQ with a higher annualized return.
QQQ vs. VGT - Dividend and Expense Ratio Comparison:
- Dividend Yield (TTM):
- QQQ: 0.57%
- VGT: 0.65%
- Expense Ratio:
- QQQ: 0.20%
- VGT: 0.10%
Risk-Adjusted Performance Metrics:
- Sharpe Ratio:
- QQQ: 2.76
- VGT: 2.55
- Other Metrics:
- Sortino ratio, Omega ratio, Calmar ratio, and Ulcer Index are not provided but are standard risk-adjusted performance indicators.
Conclusion:
- While QQQ and VGT show similar volatilities, the Sharpe Ratio suggests QQQ has a slightly higher risk-adjusted return.
- QQQ has a lower dividend yield but a higher expense ratio compared to VGT.
In summary, investors must weigh the performance, risk, and other factors based on their financial goals and risk tolerance when considering investments in Invesco QQQ and Vanguard Information Technology ETF. The provided data offers a comprehensive snapshot, but a thorough analysis considering broader market trends and economic indicators is essential for informed decision-making.
