Updated 13 October 2026. Holdings dates are shown below; performance comparisons end on 9 October 2026.
VGT and QQQ both give you exposure to companies such as NVIDIA, Apple and Microsoft. That overlap can make them look like substitutes, but they are built for different purposes.
VGT targets the US information technology sector. QQQ follows the Nasdaq-100, which includes large non-financial companies listed on Nasdaq across several sectors. VGT is the more direct sector allocation; QQQ offers a wider mix of businesses, although it is still heavily influenced by technology-related stocks.
VGT vs QQQ at a glance
| Feature | VGT | QQQ |
|---|---|---|
| Fund name | Vanguard Information Technology ETF | Invesco QQQ ETF |
| Benchmark | MSCI US Investable Market Information Technology 25/50 Index | Nasdaq-100 |
| Selection focus | US information technology companies | Large Nasdaq-listed non-financial companies |
| Company sizes | Large, medium and small | Predominantly large companies |
| Annual expense ratio | 0.09% | 0.18% |
| Management | Passive index tracking | Passive index tracking |
| Inception | 26 January 2004 | 10 March 1999 |
| Nasdaq listing required? | No | Yes |
| Main portfolio role | Dedicated technology-sector allocation | Nasdaq-100 allocation across several sectors |
QQQ’s fee fell to 0.18% following its conversion to an open-end fund structure in December 2025. Its benchmark remains the Nasdaq-100.
Why familiar “tech” names can be missing from VGT
In everyday conversation, “technology company” can describe almost any business built around software or the internet. A sector index uses formal classifications instead. VGT follows the GICS information technology definition, so it does not aim to own every company people associate with technology.
That distinction explains why QQQ can include Amazon, Alphabet and Meta alongside hardware and chip companies. If those businesses are central to the exposure you want, do not assume a technology-sector ETF is interchangeable with QQQ.
QQQ is also not a complete US-market fund. Its Nasdaq listing requirement and exclusion of financial companies leave out parts of the wider market. Neither fund is a substitute for a fully diversified portfolio.
Fees: how much does the difference matter?
| Investment value | VGT at 0.09% | QQQ at 0.18% | VGT’s annual saving |
|---|---|---|---|
| US$10,000 | US$9 | US$18 | US$9 |
| US$50,000 | US$45 | US$90 | US$45 |
| US$100,000 | US$90 | US$180 | US$90 |
Fund expenses are deducted from the fund’s assets. VGT costs less, but the fee saving should come after the portfolio decision: a cheaper fund does not help if it gives you exposure you did not intend to take.
Top 10 holdings: concentration matters
The snapshots have different dates: VGT is dated 31 August 2026 and QQQ is dated 9 October 2026. They show individual security positions, rather than combining share classes. Use them to understand the portfolios, not to calculate a precise same-day overlap percentage.
| Rank | VGT holding | Weight | QQQ holding | Weight |
|---|---|---|---|---|
| 1 | NVIDIA | 17.74% | NVIDIA | 8.24% |
| 2 | Apple | 15.80% | Apple | 7.33% |
| 3 | Microsoft | 11.52% | Microsoft | 5.93% |
| 4 | Broadcom | 4.52% | Micron Technology | 4.78% |
| 5 | Micron Technology | 4.18% | Amazon | 4.22% |
| 6 | Advanced Micro Devices | 2.95% | Advanced Micro Devices | 4.09% |
| 7 | Cisco Systems | 1.71% | Meta Platforms | 3.19% |
| 8 | Palantir Technologies | 1.61% | Alphabet Class A | 3.08% |
| 9 | Intel | 1.54% | Tesla | 3.00% |
| 10 | Lam Research | 1.49% | SpaceX | 2.87% |
| Sum of displayed weights | — | 63.06% | — | 46.73% |
NVIDIA, Apple and Microsoft together account for 45.06% of VGT in this snapshot. A fund can hold hundreds of stocks and still depend heavily on a few companies. Holding both VGT and QQQ would increase your exposure to several shared names rather than remove that concentration.
What is inside VGT’s technology allocation?
| VGT subindustry | Weight |
|---|---|
| Semiconductors | 38.4% |
| Technology hardware, storage and peripherals | 19.1% |
| Systems software | 13.1% |
| Application software | 8.0% |
| Semiconductor materials and equipment | 8.0% |
| Communications equipment | 4.2% |
| Electronic components | 2.4% |
| IT consulting and other services | 1.7% |
| Internet services and infrastructure | 1.7% |
| Electronic equipment and instruments | 1.4% |
| Electronic manufacturing services | 1.3% |
| Other | 0.7% |
This shows why a technology-sector fund is more than a basket of software companies. Chip businesses and their suppliers can have a substantial influence on results. Changes in demand, investment spending and competition can affect many of these holdings together.
VGT’s table uses GICS subindustries. QQQ’s issuer reports sector exposure using ICB, a different classification system. Those categories should not be placed side by side as if they were identical.
Performance over matching periods
Both columns below use the same ending date. Multi-year returns are annualized, meaning the compounded average return per year. They are not a promise of what an investor will earn each year.
| Period ending 9 October 2026 | VGT | QQQ |
|---|---|---|
| 2026 year to date | 36.29% | 22.71% |
| 1 year | 33.96% | 23.60% |
| 3 years, annualized | 34.65% | 27.74% |
| 5 years, annualized | 20.98% | 16.47% |
| 10 years, annualized | 24.97% | 21.12% |
VGT led over the periods shown. That records the outcome of its sector exposure over those dates; it does not establish that taking more technology-sector risk will always produce a better result.
What would US$10,000 have grown to?
| Holding period ending 9 October 2026 | VGT | QQQ |
|---|---|---|
| 3 years | US$24,413 | US$20,845 |
| 5 years | US$25,915 | US$21,432 |
| 10 years | US$92,928 | US$67,956 |
Each row assumes a single US$10,000 investment at the start of that period, with no extra contributions or withdrawals. Personal taxes, brokerage fees and currency conversion costs are excluded. A Singapore investor’s result in SGD would also depend on USD/SGD movements. These examples are historical, not forecasts.
Calendar-year returns: the losses matter too
| Year | VGT | QQQ |
|---|---|---|
| 2020 | 46.04% | 48.62% |
| 2021 | 30.45% | 27.42% |
| 2022 | −29.70% | −32.58% |
| 2023 | 52.66% | 54.86% |
| 2024 | 29.30% | 25.58% |
| 2025 | 21.77% | 20.77% |
Both suffered large losses in 2022. QQQ led in 2020 and 2023 despite VGT’s stronger ten-year result. The winner depends on the period, and a strong average can hide a difficult experience along the way.
Sector concentration, expensive valuations and disappointment in company earnings can all hurt returns. Keep money needed for near-term spending separate from an allocation that may need years to recover after a decline.
Which ETF fits your goal?
| Your goal | What to consider |
|---|---|
| A deliberate US technology-sector allocation | VGT offers direct sector exposure at a lower fee. |
| Nasdaq-100 exposure including businesses outside IT | QQQ follows that broader sector mix. |
| Long-term Nasdaq-100 holding | Compare QQQM’s lower fee before choosing QQQ. |
| Diversification away from existing mega-cap technology holdings | Neither is an obvious solution; check the overlap first. |
| A broad core equity holding | Compare broad-market funds before adding either as a focused allocation. |
| Regular spending income | Neither should be selected primarily for its dividend payments. |
If you prefer the Nasdaq-100 approach, QQQM tracks the same index at 0.15%, compared with QQQ’s 0.18%. The saving is approximately US$3 per year on US$10,000. QQQ’s heavy trading activity may matter more to frequent traders; compare actual spreads and total transaction costs.
For a beginner, the key question is whether you want to make a specific technology-sector allocation. If yes, VGT is built for that purpose. If you want the Nasdaq-100’s mix of businesses, QQQ or QQQM is the closer match. Decide how much concentration you can live with before focusing on which fund recently performed best.
For related reading, see VUG vs QQQ. Singapore-based investors should also consider fund domicile and tax treatment alongside fees; my S&P 500 ETF guide discusses those considerations.
This article is for general information and is not personal financial advice. Investments can lose value, and past performance does not guarantee future results.
