Initializing...0%

Calculator Guide

Review the individual and group portfolio flows screen by screen.

Open guide and empty state mobile guide image

Screen 1

Open guide and empty state

Review the individual portfolio flow even when no portfolio exists or data is still loading.

VYM vs QQQ: Vanguard High Dividend Yield ETF vs Invesco QQQ Trust Comparison

Compare VYM (Vanguard High Dividend Yield ETF) and QQQ (Invesco QQQ Trust) by expense ratio, dividend yield, holdings, and more.

Key Differences

  • 1Expense ratio: VYM 0.06% vs QQQ 0.2% (VYM is 0.14%p cheaper)
  • 2Dividend yield: VYM 2.75% vs QQQ 0.53%
  • 3Category: VYM is Dividend ETFs, QQQ is Growth ETFs
  • 4Holdings: VYM 537 vs QQQ 101
  • 5Issuer: VYM (Vanguard) vs QQQ (Invesco)

Conclusion

Recommended:VYM

VYM has an overall advantage with lower expense ratio (0.06% vs 0.2%), higher dividend yield (2.75% vs 0.53%). However, QQQ also offers High growth potential, making it worth considering depending on your portfolio goals.

CategoryVYMQQQ
Fund NameVanguard High Dividend Yield ETFInvesco QQQ Trust
Current Price......
CategoryDividend ETFsGrowth ETFs
Expense Ratio0.06%0.2%
Dividend Yield2.75%0.53%
Holdings537101

VYM Top Holdings

  1. 1. Broadcom
  2. 2. JPMorgan
  3. 3. Exxon Mobil
  4. 4. Procter & Gamble

QQQ Top Holdings

  1. 1. Microsoft
  2. 2. Apple
  3. 3. Nvidia
  4. 4. Amazon
  5. 5. Meta

VYM Features

  • •High dividend
  • •Large-cap stocks
  • •Diversified investment
  • •Low expense ratio

QQQ Features

  • •Tech stock concentration
  • •High growth potential
  • •Tracks the Nasdaq 100
  • •Excellent liquidity

Pros & Cons

VYM

Advantages
  • ✓ High dividend income
  • ✓ Stable companies
  • ✓ Low volatility
Disadvantages
  • ⚠ Limited growth potential
  • ⚠ Interest rate sensitive
  • ⚠ Sector bias

QQQ

Advantages
  • ✓ High growth potential
  • ✓ Technology sector exposure
  • ✓ Excellent liquidity
Disadvantages
  • ⚠ High volatility
  • ⚠ Tech stock bubble risk
  • ⚠ High concentration

Investment Strategy

Best For: VYM

Suitable for income investors; diversify with SCHD

Best For: QQQ

Monthly or quarterly rebalancing; adjust allocation during high volatility

Detailed Analysis

1. 분석

VYM (Vanguard High Dividend Yield ETF) and QQQ (Invesco QQQ Trust) They belong to different categories — Dividend ETFs and Growth ETFs — representing distinct investment areas. VYM: Vanguard High Dividend Yield ETF (VYM) is an exchange-traded fund that provides investors with exposure to dividend-paying equities. It carries an expense ratio of 0.06%. The fund offers a dividend yield of approximately 2.75%. The portfolio holds 537 securities. With an expense ratio of 0.06% and dividend yield of 2.75%, its top holdings include Broadcom, JPMorgan, Exxon Mobil. Key features include High dividend, Large-cap stocks, with High dividend income being a major advantage. QQQ: Invesco QQQ Trust (QQQ) is an exchange-traded fund that provides investors with exposure to growth-oriented companies and sectors. It carries an expense ratio of 0.20%. The fund offers a dividend yield of approximately 0.53%. The portfolio holds 101 securities. With an expense ratio of 0.2% and dividend yield of 0.53%, top holdings include Microsoft, Apple, Nvidia. Notable features are Tech stock concentration, High growth potential, with High growth potential as a core strength. In terms of expense ratio, VYM is 0.14%p cheaper, which can lead to significant cost savings through compounding over long-term investment. Over 20 years with a $100,000 investment, this difference can amount to thousands of dollars.

2. 추천

VYM is suitable for Suitable for income investors; diversify with SCHD, while QQQ is suitable for Monthly or quarterly rebalancing; adjust allocation during high volatility. Since they are in different categories, holding both can provide portfolio diversification benefits. Adjust the allocation based on your risk tolerance and investment horizon. For beginners, we recommend a core-satellite strategy: choose a low-cost, well-diversified ETF as your core holding, and allocate the rest to satellite positions.

3. 결론

Both VYM and QQQ are excellent ETFs for their respective investment objectives. The key is to choose based on your investment goals, time horizon, and risk tolerance. Rather than focusing on a single metric (dividend yield, fees, etc.), evaluate from a holistic portfolio perspective. Use our rebalancing calculator to easily determine the optimal asset allocation including both ETFs.

VYM vs QQQ Investment Guide

Both VYM and QQQ are popular US ETFs, but they differ in investment strategy and portfolio role. VYM has an expense ratio of 0.06%, while QQQ charges 0.2%, giving VYM a cost advantage. In terms of dividend yield, VYM offers 2.75% while QQQ offers 0.53%, making VYM the better choice for income investors.

When choosing between the two, consider your investment goals, time horizon, and risk tolerance. If long-term growth is your priority, favor the ETF with lower fees and broader diversification. If you need steady cash flow, the higher-yielding ETF may be more suitable. You can also hold both in your portfolio for a complementary approach.

Regardless of which ETF you choose, maintaining your target allocation through regular rebalancing is key to long-term performance. Review your portfolio quarterly or semi-annually, and adjust if weights have drifted significantly. Our rebalancing calculator can automatically determine the buy/sell quantities for each holding.

5 Things to Check When Comparing ETFs

1.

Expense Ratio: Even a 0.1% difference in fees can translate to thousands of dollars over long-term investing. When two ETFs track a similar index, the lower-cost option has the edge.

2.

Tracking Index & Holdings: Even ETFs in the same category may track different indices. Review the top holdings and sector weights to find the best fit for your investment goals.

3.

Dividend Policy: Compare dividend frequency (monthly vs quarterly), yield, and dividend growth rate. Monthly dividend ETFs may be preferable if you need regular cash flow.

4.

Trading Volume & Liquidity: Sufficient daily trading volume ensures you can buy and sell at fair prices. Low-volume ETFs may have wider bid-ask spreads, increasing your trading costs.

5.

Portfolio Role: Determine whether the ETF serves as a core or satellite holding in your portfolio, and size your position accordingly.

Apply with the Rebalancing Calculator

Automatically calculate exactly how much to buy and sell to rebalance your portfolio.

Start Rebalancing Calculator

Related Content

VYM Detail Analysis
ETF Details
QQQ Detail Analysis
ETF Details
ETF Selection Guide
Investment Guide