VOO vs QQQ
VOO and QQQ track different indexes with different sector makeups. Here's how they compare.
What each fund tracks
VOO tracks the S&P 500, an index of roughly 500 large U.S. companies spanning most major sectors, including financials, healthcare, industrials, energy, and technology. QQQ tracks the Nasdaq-100, an index of roughly 100 of the largest non-financial companies listed on the Nasdaq exchange.
Sector concentration
Because the Nasdaq-100 excludes financial companies and is dominated by technology-oriented businesses, QQQ tends to be significantly more concentrated in the technology sector than VOO. VOO's broader sector mix generally makes it more diversified across the wider economy, while QQQ's concentration can mean bigger swings tied to how the tech sector is performing.
Volatility considerations
A more concentrated fund like QQQ has historically tended to experience larger price swings than a broader fund like VOO, in both directions — meaning potentially larger gains in strong periods for its dominant sector, and potentially larger declines in weak periods. This is a general pattern related to diversification, not a prediction about either fund's future performance.
Cost and structure
Expense ratios for both funds can change over time — check the current expense ratio directly with Vanguard and Invesco before comparing costs.
Which one fits your plan
Some investors hold both funds together as a way to combine broad market exposure with a tilt toward large technology and growth companies, while others prefer the simplicity of a single broad fund like VOO. The right mix depends on your goals, time horizon, and comfort with sector concentration — this page is educational information, not a recommendation.
Use our VOO calculator to project growth for a VOO position under your own assumptions.