QQQ is up 26.05% year-to-date (YTD) with +$21.91B in YTD flows. VOO performs better with 27.25% YTD performance, and +$90.02B in YTD flows.
This Growth-Focused ETF (QQQ) Has A 421% Return For The Past 10 Years – And Outperforms The S&P 500 Index By Almost 50%
VOO will do well over the long term, but will underperform the market for periods of 5-10 years when small and/or international stocks are favoured. As long as you can hold through such periods of underperformance, VOO is a great option.
SPY had a much higher rate of return than QQQ over a long-term investment period. I recently saw some amazing results. It turns out that the S&P 500 SPY had a much higher rate of return than QQQ over a long-term investment period. If you take a look at the chart since 1999, you'll see the stark contrast.
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.
SPY is more expensive with a Total Expense Ratio (TER) of 0.0945%, versus 0.03% for VOO. SPY is up 28.31% year-to-date (YTD) with +$7.13B in YTD flows. VOO performs better with 28.36% YTD performance, and +$103.99B in YTD flows.
Warren Buffett's Berkshire Owns 2 ETFs: SPY and VOO
SPDR S&P 500 ETF Trust SPY. Vanguard S&P 500 ETF VOO.
Alternatives to VOO and IVV
A prime competitor worth considering is the SPDR Portfolio S&P 500 ETF (SPLG). It tracks the same S&P 500 index as VOO and IVV but offers a slightly lower expense ratio at 0.02%. Another appealing feature of SPLG is its lower share price, around $64, compared to over $500 for IVV and VOO.
The 5-year cumulative return for Invesco QQQ is +148.29%, meaning $10,000 invested in Invesco QQQ 5 years ago would be worth $24,829 today. Source: Morningstar Inc.
If investing were predictable, nearly everyone would own a piece of Invesco's QQQ QQQ 0.0% fund. The tech-heavy ETF has gained 30% over the last year and averages annual gains over 21% since mid-2019. Of course, there are risks that come with those ample rewards.
Both VOO and QQQ are solid investments, and there is room for both ETFs in many portfolios. Determining how to weight each investment will depend on an investor's risk tolerance, desire for dividends, and forecast for the future of the tech industry.
VOO is less expensive with a Total Expense Ratio (TER) of 0.03%, versus 0.06% for SCHD. VOO is up 27.79% year-to-date (YTD) with +$105.04B in YTD flows. SCHD performs worse with 19.19% YTD performance, and +$6.90B in YTD flows.
VOO appeals to investors because of its diversification and focus on large-cap equities, which tend to be more stable and have a strong history of profitability compared with smaller, riskier companies. Large-cap stocks dominate the fund, providing exposure to stocks with a blend of stability and growth potential.
While your investing choices are personal, there's one option that comes highly recommended by billionaire investor Warren Buffett: The S&P 500 index fund. Here's why it's such a fantastic investment, and how you could earn hundreds of thousands of dollars while barely lifting a finger. Image source: The Motley Fool.
And Buffett knows it, too, as SPDR S&P 500 ETF Trust is one of Berkshire Hathaway's own holdings. "Buffett was a believer in investing in S&P 500 funds for their simplicity and low costs," said Todd Rosenbluth, head of research at TMX VettaFi.
In the past year, QQQ returned a total of 24.57%, which is slightly higher than SPY's 23.53% return. Over the past 10 years, QQQ has had annualized average returns of 18.38% , compared to 13.08% for SPY. These numbers are adjusted for stock splits and include dividends.
VOO has a consensus rating of Moderate Buy which is based on 400 buy ratings, 99 hold ratings and 5 sell ratings. What is VOO's price target? The average price target for VOO is $621.22. This is based on 504 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
For example, you might buy SPY if you want to trade actively, or even venture into day trading, because of its high volume. You might consider buying VOO to hold over the long term because of its lower expenses.
VOO Dividend Information
VOO has a dividend yield of 1.25% and paid $6.71 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Dec 23, 2024.