Should I invest in VOO or QQQ? (2024)

Should I invest in VOO or QQQ?

QQQ - Performance Comparison. In the year-to-date period, VOO achieves a 6.76% return, which is significantly higher than QQQ's 3.93% return. Over the past 10 years, VOO has underperformed QQQ with an annualized return of 12.61%, while QQQ has yielded a comparatively higher 18.32% annualized return.

What is better, VOO or QQQ?

Average Return. In the past year, QQQ returned a total of 35.43%, which is significantly higher than VOO's 24.48% return. Over the past 10 years, QQQ has had annualized average returns of 18.20% , compared to 12.50% for VOO. These numbers are adjusted for stock splits and include dividends.

Is it better to trade QQQ or SPY?

If we compare SPY vs QQQ in terms of sector diversification, it is clear that QQQ, which is a NASDAQ-100 ETF, is strongly inferior to the SPY ETF. The tech sector (Electronic Technology + Technology Services) accounts for over 60% of its net assets.

Is QQQ worth investing in?

The Invesco QQQ Trust has crushed the performance of the Ark Innovation ETF in the past five years. Even in record territory, dollar-cost averaging into the Invesco QQQ Trust is a smart move for investors seeking higher returns.

What ETF is better than QQQ?

For investors seeking an alternative to QQQ's mega-cap exposure, the Invesco S&P 500 Top 50 ETF (XLG) is an excellent option. XLG tracks the S&P 500 Top 50 Index, which, like QQQ, is heavily weighted towards top-tier tech and consumer stocks.

Why not invest in QQQ?

QQQ usually declines more in bear markets, has high sector risk, often appears overvalued, and holds no small-cap stocks. This ETF allows traders to invest in the largest 100 non-financial companies listed on the Nasdaq.

Is it wise to invest in VOO?

What do analysts say about VOO? VOO's analyst rating consensus is a Moderate Buy. This is based on the ratings of 505 Wall Streets Analysts.

Will QQQ outperform S&P 500?

The QQQ gained 18.1% annually over the past 10 years. That tops all of the nearly 300 ETFs in the category. That easily outpaces the 12.6% average annual gain of the SPDR S&P 500 ETF Trust (SPY) — the cornerstone of most investors' portfolios. And the QQQ is cheap, only charging 0.2%.

Does QQQ outperform S&P?

A history of outperformance. Invesco QQQ — the ETF that tracks the Nasdaq-100 index — has beaten the S&P 500 nine out of the last 10 years. Source: Morningstar Inc. Data begins 10 years prior to the ending date.

Is QQQ better than Vanguard?

VGT - Performance Comparison. In the year-to-date period, QQQ achieves a 1.39% return, which is significantly higher than VGT's -0.61% return. Over the past 10 years, QQQ has underperformed VGT with an annualized return of 17.83%, while VGT has yielded a comparatively higher 19.45% annualized return.

Is QQQ a good long-term hold?

As discussed above, QQQ has generated a 17.7% annualized return over the past 10 years (as of December 31), far exceeding VOO's still impressive 10-year annualized return of 12.0%. While past performance does not guarantee future results, QQQ's long-term track record bodes well for its future prospects.

What's the best ETF to buy right now?

Should I buy VOO or VTI?

Or, you could also invest in both, for example, by putting half in VOO and half in VTI. Here's a summary of which one to choose: If you want to own only the biggest and safest stocks, choose VOO. If you want more diversification and exposure to mid-caps and small-caps, choose VTI.

Is QQQ and VOO similar?

VOO and QQQ are two ETFs that invest in different indexes. VOO tracks the performance of S&P 500, while QQQ tracks the performance of the Nasdaq 100. There are some key differences that you need to recognize when investing in these two ETFs. First, VOO has a clear advantage in terms of expense ratio.

Should i buy QQQ in 2024?

Enter the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). For 2024, the S&P 500 is forecast to deliver EPS growth of 11.7%, solidly above the 10-year average of 8.4%. QQQ and QQQM follow the Nasdaq-100 Index. That benchmark has a long history of delivering EPS growth well in excess of the S&P 500.

What is the difference between ETF VOO and QQQ?

VOO - Volatility Comparison. Invesco QQQ (QQQ) has a higher volatility of 4.17% compared to Vanguard S&P 500 ETF (VOO) at 3.31%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure.

What is the best ETF to invest in 2024?

Is Tesla in QQQ?

QQQ, also known as Invesco QQQ ETF, is a fund based on the Nasdaq-100 index. The fund has 101 non-financial holdings, of which the top 10 holdings largely include technology companies such as Apple, Microsoft, Amazon, Meta, and Tesla.

Does Vanguard have a QQQ equivalent?

Vanguard Information Technology ETF (VGT) has a higher volatility of 4.98% compared to Invesco QQQ (QQQ) at 4.34%. This indicates that VGT's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Is VOO good long-term?

Investing in the S&P 500 index fund, such as VOO, is a winning long-term strategy.

Is VOO a good investment for beginner investors?

Vanguard S&P 500 ETF (VOO)

For example, a young investor looking for long-term growth may pick a low-cost U.S. equity ETF like VOO, which tracks the S&P 500 index. Historically, this index has delivered excellent performance, but has also been quite volatile, so a high risk tolerance is essential.

What is the return rate for VOO?

Is QQQ the best index fund?

The Vanguard 500 Index Fund (VFIAX) is one of the best index funds tracking the S&P 500 index. The Invesco NASDAQ 100 ETF (QQQM) is among the best ETFs for the Nasdaq-100 index.

Is QQQ the best Nasdaq ETF?

QQQ is the most popular Nasdaq ETF because it uses a full replication strategy, meaning this ETF includes every security in the Nasdaq Index rather than a representative sample. Invesco QQQ offers an annualized return of 9.5% since its inception in 1999.

Where will QQQ be in 5 years?

Invesco QQQ stock price stood at $418.82

According to the latest long-term forecast, Invesco QQQ price will hit $450 by the end of 2024 and then $500 by the middle of 2025. Invesco QQQ will rise to $600 within the year of 2027, $700 in 2028, $800 in 2030, $900 in 2032 and $1000 in 2035.