{"id":597,"date":"2022-03-21T02:00:23","date_gmt":"2022-03-21T02:00:23","guid":{"rendered":"https:\/\/investorimpactlab.com\/?p=597"},"modified":"2022-03-23T22:21:59","modified_gmt":"2022-03-23T22:21:59","slug":"qqq-vs-vti","status":"publish","type":"post","link":"https:\/\/investorimpactlab.com\/qqq-vs-vti\/","title":{"rendered":"QQQ vs. VTI: Which ETF to Choose?"},"content":{"rendered":"\n
There is no one-size-fits-all answer when it comes to choosing between different types of investments. Different investors have different needs and preferences. This means that they will have different opinions on the best type of investment. <\/p>\n\n\n\n
I understand these preferences, and that’s why my curiosity pushed me to compare these two high-performing exchange-traded funds, QQQ, and VTI<\/strong>.<\/p>\n\n\n\n Invesco QQQ Trust (QQQ) and Vanguard Total Stock Market ETF (VTI) have a stable past performance. QQQ is famous for the diversification it provides, and VTI is renowned for its low expense ratio. There are a few other distinctions in them as well.<\/p>\n\n\n\n For instance, they are managed by distinct organizations and track separate indexes. The QQQ Trust, for example, gives investors access to a portfolio that is comparable to the Nasdaq 100 index<\/strong><\/a>.<\/p>\n\n\n\n The VTI, on the other hand, tracks the performance of the CRSP US Total Market Index<\/strong><\/a>.<\/strong><\/p>\n\n\n\n Both have their benefits and some disadvantages over one another. But one thing is sure, and both can be ideal for a varied variety of users.<\/p>\n\n\n\n So, let’s now begin the comparison and take a look at the offerings they provide an investor.<\/p>\n\n\n\n Yes, there are quite a few differences between these two ETFs.<\/p>\n\n\n\n First and foremost, the manner in which they track indexes is different. The QQQ Trust tracks the performance of the Nasdaq 100 index<\/strong>, whereas the Vanguard Total Stock Market ETF<\/strong> tracks the CRSP US Total Market Index.<\/strong><\/p>\n\n\n\n Second, their expense ratios differ. The QQQ Trust has an expense ratio of 0.20%,<\/strong> much higher than the Vanguard Total Stock Market ETFs expense ratio of 0.03%.<\/strong><\/p>\n\n\n\n Third, their market capitalization differs. The QQQ Trust has 99.93% percent of its market capitalization invested in large-cap firms. At the same time, the Vanguard Total Stock Market ETF invests 87.52% of its market capitalization in large companies, 9.57% in Midcap, and 2.42% in small-cap companies.<\/strong><\/p>\n\n\n\n Fourth, the difference is in terms of its holdings. VTI is way ahead when it comes to the number of holdings. VTI holds 4099 companies, whereas QQQ holds only 103<\/strong>. Therefore, the diversification prospect of long-term investment stability is better in VTI.<\/p>\n\n\n\n A large volume of money goes through the QQQ, one of the most popular ETFs. Its enormous daily trading volume suggests that it is primarily utilized as a short-term trading tool rather than a long-term investment vehicle.<\/strong><\/p>\n\n\n\n The ETF is designed to track the Nasdaq-100 Index, which contains the stocks of 100 of the largest and most liquid nonfinancial companies listed on the Nasdaq.<\/p>\n\n\n\nKey Takeaways<\/h2>\n\n\n\n
QQQ vs VTI – Are There Any Differences?<\/h2>\n\n\n\n
Differences<\/h3>\n\n\n\n
Similarities<\/h3>\n\n\n\n
QQQ vs VTI – Composition<\/h2>\n\n\n\n
QQQ<\/h3>\n\n\n\n