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ETF Comparisons

VGT vs. QQQ

Vanguard Information Technology ETF

VGT
$--
vs

Invesco QQQ Trust, Series 1

QQQ
$--

Correlation

0.98

Compare with

Top 10 comparisons with VGT:
Compare:
VGT
Correlation
With:
QQQ
Invesco QQQ Trust, Series 1
0.98
SwitchFTECFidelity Covington Trust - Fidelity MSCI Information Technology Index ETF1.00TECLDirexion Shares ETF Trust - Direxion Daily Technology Bull 3X Shares1.00XLKSSgA Active Trust - Technology Select Sector SPDR ETF1.00IXNBlackRock Institutional Trust Company N.A. - iShares Global Tech ETF0.99ROMProShares Trust - ProShares Ultra Technology 2x Shares0.99IYWBlackRock Institutional Trust Company N.A. - iShares U.S. Technology ETF0.99IGMBlackRock Institutional Trust Company N.A. - iShares Expanded Tech Sector ETF0.98TQQQProShares Trust - ProShares UltraPro QQQ 3x Shares0.98QLDProShares Trust - ProShares Ultra QQQ 2x Shares0.98QQQInvesco Capital Management LLC - Invesco QQQ Trust Series 10.98

Top 10 shared holdings

Invest with VGT
Learn more about QQQ
VGTVanguard Information Technology ETF
QQQInvesco QQQ Trust, Series 1

What is VGT?

Seeks to track the performance of a benchmark index that measures the investment return of stocks in the information technology sector. Passively managed using a full-replication strategy when possible and a sampling strategy if regulatory constraints dictate. Includes stocks of companies that serve the electronics and computer industries or that manufacture products based on the latest applied science.

Snapshot
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VGT Vanguard Information Technology ETF
QQQ Invesco QQQ Trust, Series 1
Inception date
Jan 26 2004
Mar 10 1999
Expense ratio
0.10%
0.20%
VGT has a lower expense ratio than QQQ by 0.1%. This can indicate that it’s cheaper to invest in VGT than QQQ.
Type
US Equities
US Equities
VGT targets investing in US Equities, while QQQ targets investing in US Equities.
Fund owner
Vanguard
Invesco
VGT is managed by Vanguard, while QQQ is managed by Invesco.
Volume (1m avg. daily)
$206,920,148
$17,559,045,883
Both VGT and QQQ are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$50,021,727,974
$197,956,569,440
VGT has more assets under management than QQQ by $147,934,841,466. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
MSCI US Investable Market Information Technology 25/50 Transition Index
Nasdaq 100 Index
VGT is based off of the MSCI US Investable Market Information Technology 25/50 Transition Index, while QQQ is based off of the Nasdaq 100 Index
Inverse/Leveraged
No
No
VGT and QQQ use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
VGT and QQQ both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
No
No
VGT and QQQ may offer dividends. The frequency and yield of the dividend may not be the same.
Prospectus
View
View
QQQ may issue a K1, while VGT does not. You can find non-K1 alternatives for QQQ in its “Related ETFs” section.
VGT and QQQ’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

Automated Strategies
Related toVGT

#PTS

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Category

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Risk Rating

Aggressive

Automated Strategies
Related toQQQ

#BTD

Buy the Dips: Nasdaq 100

Category

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Risk Rating

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Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

**

We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.