Compare and contrast key facts about Invesco QQQ (QQQ) and Vanguard Information Technology ETF (VGT).
QQQ and VGT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004. Both QQQ and VGT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: QQQ or VGT.
VGT - Volatility Comparison. The current volatility for Invesco QQQ (QQQ) is 4.81%, while Vanguard Information Technology ETF (VGT) has a volatility of 5.63%. This indicates that QQQ experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure.
The Invesco QQQ Trust, long synonymous with tech, had a phenomenal year. But a less-discussed tech ETF, the SPDR NYSE Technology ETF, outperformed it in 2023.
VGT has a conensus rating of Moderate Buy which is based on 238 buy ratings, 72 hold ratings and 5 sell ratings. What is VGT's price target? The average price target for VGT is $592.80. This is based on 315 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
The VGT ETF offers wide exposure to US tech companies, focusing solely on tech. This is unlike the Invesco QQQ Trust ETF (QQQ), which follows the Nasdaq 100 and includes non-tech companies like PepsiCo and Starbucks. It is therefore a preferable option if you are a believer in the tech sector.
The key parameters of importance in comparing QQQ and VGT are summarized in the table. The key difference between the funds under consideration is the total net asset value and trading volume. QQQ outperforms both factors and can be considered the best tech ETF.
The Vanguard Growth Fund holds 221 stocks compared to just 100 stocks in the Invesco QQQ Trust, so it might seem surprising the Vanguard fund has more exposure to the "Magnificent Seven" stocks than the QQQ does.
For investors who care less about broad swaths of the stock market and prefer to veer towards the high-flying technology sector in pursuit of long-term growth, the Invesco QQQ Trust is a solid option to consider.
Vanguard Information Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VGT is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market.
VOO - Performance Comparison. In the year-to-date period, VGT achieves a 2.46% return, which is significantly lower than VOO's 5.98% return. Over the past 10 years, VGT has outperformed VOO with an annualized return of 19.87%, while VOO has yielded a comparatively lower 12.42% annualized return.
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