VOO vs QQQ

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

As of September 28, 2026, VOO charges a 0.03% expense ratio versus QQQ's 0.18% — QQQ costs 6x more per year, reflecting its more actively-defined, narrower index. Expense ratios can change over time; check current figures directly with Vanguard and Invesco before comparing costs.

What concentration actually means, in numbers

VOO holds about 516 companies; QQQ holds about 100. Spread evenly, each individual holding in QQQ would carry roughly 5x the average weight of a holding in VOO, simply because the same 100% of the fund is divided among far fewer companies — in practice QQQ's actual weighting is even more concentrated than that average suggests, since its largest positions make up a disproportionate share. That's the mechanical reason a single dominant company or sector can move QQQ's price more than it moves VOO's. A single combined growth projection can't responsibly represent both funds, since they track different indexes — model each one separately with your own return assumption in the VOO calculator.

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.