Wealthy PotQQQ vs VTI: 96% of QQQ Is Already Inside VTI, at Six Times the Fee
Table of Contents
The Short Answer
- The overlap is 48%, and it runs one way. On 30 June 2026, 95.9% of QQQ's money was in companies VTI also owned. Those same companies were only 48.2% of VTI. VTI contains nearly all of QQQ; QQQ contains about half of VTI.
- QQQ costs six times as much. 0.18% a year against 0.03%: $18 against $3 on $10,000, or $230 against $39 over ten years in each prospectus's cost example.
- QQQ has returned far more. 22.07% a year over the ten years to 30 June 2026 against VTI's 15.04%. A hypothetical $10,000 became about $73,467 against $40,597.
- That return came with concentration. QQQ's ten largest companies were 47.7% of the fund; VTI's were 33.4%. Technology was 68% of QQQ against 41% of VTI, and the Nasdaq-100 excludes companies its index provider classes as financials, so QQQ holds no banks or insurers.
- QQQ changed in December 2025. It converted from a unit investment trust to an open-end fund and cut its fee from 0.20% to 0.18%. Older criticism about cash drag no longer applies.
- They are not substitutes. VTI is a complete US stock portfolio. QQQ is a large-cap growth and technology slice of it. The real question is whether you want that slice overweighted.
How Much of QQQ Is Inside VTI
Both funds file a full list of holdings with the SEC, and for this pair the latest filings share a date, 30 June 2026. We matched them company by company, using the same data and method as the site's Portfolio Overlap Checker.
| Holdings at 30 June 2026 | QQQ | VTI |
|---|---|---|
| Companies held | 103 | 3,159 (share classes combined) |
| Companies held by both | 91 | |
| Overlap (smaller weight of each shared holding, summed) | 48.2% | |
| Share of the fund in companies the other also owns | 95.9% | 48.2% |
| Share of the fund in companies the other does not own | 4.1% (12 positions) | 51.6% (3,068 companies) |
What QQQ owns that VTI does not. Almost nothing. Of the 4.1%, 0.26% was a cash-collateral fund rather than a stock. The rest was foreign-incorporated companies that list on Nasdaq but fall outside a US total-market index: ASML (0.79% of QQQ), ARM Holdings (0.65%), Shopify (0.60%), MercadoLibre (0.37%), NXP Semiconductors (0.31%), Nebius (0.26%), PDD Holdings (0.22%), Ferrovial (0.21%) and Coca-Cola Europacific Partners (0.19%).
What VTI owns that QQQ does not. More than half of VTI, spread over 3,068 companies. The largest are big names the Nasdaq-100 cannot hold because they list on the New York Stock Exchange or are financials: Eli Lilly (1.40% of VTI), Berkshire Hathaway (1.28%), JPMorgan Chase (1.12%), Johnson & Johnson (0.84%), Exxon Mobil (0.78%), Visa (0.77%), Caterpillar (0.68%), AbbVie (0.61%), Mastercard (0.56%) and General Electric (0.54%).
So if you already own VTI, buying QQQ does not add new companies. It adds more weight to about 90 companies you already hold. If you own QQQ alone, you are missing half of the US market by value: most banks, energy, health care and industrials, and every small company.
QQQ vs VTI Side by Side
| QQQ | VTI | |
|---|---|---|
| Full name | Invesco QQQ Trust, Series 1 | Vanguard Morningstar Total Stock Market ETF (Vanguard Total Stock Market ETF until 29 Jul 2026) |
| Index | Nasdaq-100 Index | Morningstar US Total Market Index (CRSP US Total Market Index until 29 Jul 2026) |
| What the index covers | 100 of the largest non-financial companies on Nasdaq-affiliated exchanges | "100% of the investable U.S. stock market" |
| Expense ratio | 0.18% (0.20% before 20 Dec 2025) | 0.03% |
| Prospectus cost on $10,000, 10 years | $230 | $39 |
| Holdings | 102 (2 Oct 2026) | 3,507 stocks (31 Aug 2026) |
| Ten largest companies, share of fund | 47.7% (30 Jun 2026) | 33.4% (30 Jun 2026) |
| Technology weight (ICB) | 68.0% (30 Sep 2026) | 40.9% (31 Aug 2026) |
| Size | $505.19bn (2 Oct 2026) | ETF class $689.2bn; whole fund $2.3 trillion (31 Aug 2026) |
| 30-day SEC yield | 0.39% (1 Oct 2026) | 1.03% (Vanguard profile, read 4 Oct 2026) |
| Portfolio turnover, last fiscal year | 7.98% | 3% |
| Legal form | Open-end fund since 19 Dec 2025 (unit investment trust before) | ETF share class of a Vanguard mutual fund |
| Inception | 10 Mar 1999 | 24 May 2001 |
The fee in dollars. The gap is 0.15 points a year: $150 a year on $100,000. If you want the Nasdaq-100 for less, Invesco's QQQM tracks the same index at 0.15%. QQQ's case rests on trading: its median bid-ask spread was 0.00% and its 30-day average volume about 33.6 million shares on Invesco's page, which matters to active traders and options users, not to someone buying monthly.
Concentration and Sectors
| Share of the fund, 30 Jun 2026 | QQQ | VTI |
|---|---|---|
| NVIDIA | 7.58% | 6.36% |
| Apple | 6.65% | 5.87% |
| Alphabet (both share classes) | 6.27% | 5.18% |
| Micron Technology | 5.62% | 1.80% |
| Advanced Micro Devices | 4.09% | 1.31% |
| Largest 10 | 47.68% | 33.44% |
| Largest 25 | 72.38% | 45.55% |
| Largest 50 | 87.58% | 55.84% |
The striking rows are not the mega-caps. NVIDIA and Apple are only about a point or less heavier in QQQ than in VTI. The difference is the next tier: Micron and AMD each carried about three times their VTI weight in QQQ, because the Nasdaq-100 has only about 100 seats and its weighting rules trim the largest names.
| Sector (ICB) | QQQ (30 Sep 2026) | VTI (31 Aug 2026) |
|---|---|---|
| Technology | 68.01% | 40.90% |
| Consumer Discretionary | 15.14% | 12.00% |
| Telecommunications | 5.91% | 2.10% |
| Health Care | 3.78% | 9.50% |
| Industrials | 2.82% | 11.80% |
| Consumer Staples | 1.73% | 3.40% |
| Financials | none listed | 10.40% |
| Energy | 0.44% | 3.70% |
| Utilities, Real Estate, Basic Materials | 2.17% | 6.10% |
QQQ is roughly two-thirds technology. VTI is two-fifths. Industrials, health care and financials together were 31.7% of VTI and 6.6% of QQQ.
QQQ Is a Different Fund Since December 2025
For 26 years QQQ was a unit investment trust. Invesco's August 2025 proxy statement spelled out what that cost shareholders: as a trust, QQQ was "unable to engage in securities lending" and had to hold dividend income "in uninvested cash until ultimately such cash is distributed", which the proxy itself called "cash drag". Shareholders approved the change, and the current prospectus states that "after market close on December 19, 2025, the Fund was reclassified as an open-end management investment company".
The fee changed with it. The proxy said the expense ratio would fall "from a maximum of 20 basis points per year ... to 18 basis points". QQQ's semi-annual report confirms the path: 0.20% in each of the five fiscal years to September 2025, then 0.19% annualized for the half-year to 31 March 2026 that straddled the switch, and 0.18% in the prospectus from 20 December 2025, now a unitary fee that covers most operating costs.
Two consequences for this comparison. First, any article that calls QQQ a UIT or quotes 0.20% is out of date. Second, QQQ's ten-year return was earned mostly under the old structure, with the higher fee and the cash drag. The prospectus notes that returns before the change "reflect the Fund's operation as a UIT".
VTI had its own 2026 change: Vanguard renamed it the Vanguard Morningstar Total Stock Market ETF on 29 July 2026 after Morningstar bought CRSP. Vanguard's supplement says the objective, strategies and policies are unchanged. See VTI vs VOO for more.
What the Difference Has Been Worth
| Annualized, to 30 Jun 2026 | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| QQQ, NAV | 34.03% | 26.55% | 16.45% | 22.07% |
| VTI, NAV | 23.16% | 20.43% | 12.24% | 15.04% |
| QQQ minus VTI | +10.87 | +6.12 | +4.21 | +7.03 |
| Nasdaq-100 Index | 34.38 | 26.83 | 16.68 | 22.33 |
| Spliced Total Stock Market Index (VTI's benchmark) | 23.16 | 20.42 | 12.25 | 15.04 |
QQQ won every window, by seven points a year over a decade. That is the reward for concentration in the companies that led the market over those ten years, and it is a real result. It is also exactly one decade. The same concentration that produced it is the risk: a fund that is two-thirds technology and has no financials, almost no energy and few industrials depends heavily on one part of the economy continuing to lead.
| Hypothetical $10,000 held for 10 years | Ending value |
|---|---|
| At VTI's 10-year NAV return (15.04%) | $40,597 |
| At QQQ's 10-year NAV return (22.07%) | $73,467 |
This is educational information, not personalized investment advice. Past performance does not guarantee future results, and all investing carries the risk of loss.
Which One Fits You
For a single fund you hold for decades, VTI. It owns the whole US market at 0.03%, so it never depends on which sector leads next. It already contains nearly everything QQQ owns.
QQQ works as a deliberate tilt, not a core. If you believe large Nasdaq technology companies will keep leading, a slice of QQQ (or QQQM, which is cheaper) next to VTI raises that exposure on purpose. Decide the percentage up front; with 96% of QQQ already inside VTI, every dollar moved into QQQ is a bet on its top 100, not new diversification.
If you trade actively or use options, QQQ is the deeper market. For buy-and-hold Nasdaq-100 exposure, the same index costs less in QQQM.
In a 401(k), the menu often has a total-market or S&P 500 index fund and no Nasdaq-100 option, which settles the question. In an IRA or Roth IRA, switching costs nothing in tax. In a taxable account, VTI's higher yield (about 1.0% against 0.4%) means a little more dividend income taxed each year; if you already hold either at a gain, redirect new money instead of selling.
Comparing alternatives? For QQQ against the S&P 500, see QQQ vs VOO. For a broader growth fund, see VUG vs QQQ and SCHG vs QQQ. For VTI against the S&P 500, see VTI vs VOO and IVV vs VTI.
Sources & Methodology
- Invesco QQQ Trust, Form 485BPOS filed 19 Dec 2025: QQQ's fee table, cost example, turnover, index rules and the reclassification language.
- QQQ definitive proxy statement filed 18 Aug 2025: the fee change and the UIT limits on lending and reinvesting income.
- QQQ Form N-CSRS for the period ended 31 Mar 2026: expense ratio history, net assets and the unitary fee note.
- Vanguard Index Funds, Form 485BPOS filed 28 Apr 2026 and Vanguard supplement dated 29 Jul 2026: VTI's ETF Shares fee table, cost example, turnover, index coverage and renaming.
- QQQ Form N-PORT, period ended 30 Jun 2026 and VTI Form N-PORT, period ended 30 Jun 2026: holdings behind the overlap and concentration tables.
- Invesco QQQ fund page, Vanguard VTI fact sheet, 30 Jun 2026 and the Vanguard VTI profile page: returns, sector weights, holdings counts, size, spread, volume and yields, read 4 Oct 2026.
How the overlap was computed. For each company both funds hold we took the smaller of its two weights and summed them, the method the site's overlap checker uses, from each N-PORT filing's percent-of-net-assets field with share classes combined. With a 100-stock fund and a 3,500-stock fund the measure is lopsided by nature, which is why we also show how much of each fund sits in shared companies.
What we could not verify. We did not open Nasdaq's or Morningstar's own index documents; index rules come from the funds' SEC filings. QQQ's annual report for the year to 30 September 2026 was not yet filed, so we have no figure for securities-lending income since the conversion. Sector weights come from the issuers' websites one month apart.
This article is for general education and is not investment, tax or legal advice. Fund data changes daily, index returns cannot be invested in directly, and past performance does not guarantee future results. All investing carries the risk of loss. Figures were checked against the sources above on 4 October 2026; confirm current figures with the issuer before acting.
FAQ: QQQ vs VTI
Is QQQ or VTI better?
For a single long-term holding, VTI: it owns the whole US market for 0.03% a year. QQQ returned more over the ten years to 30 June 2026, 22.07% a year against 15.04%, by concentrating in large Nasdaq technology companies. That makes it a tilt, not a replacement for the market.
Does VTI include QQQ's stocks?
Almost all of them. On 30 June 2026, 95.9% of QQQ's money was in companies VTI also held. The exceptions were foreign-incorporated Nasdaq listings such as ASML, ARM, Shopify and MercadoLibre, plus a small cash-collateral position.
Should I own both QQQ and VTI?
Only as a deliberate choice. Adding QQQ to VTI does not add new companies; it overweights about 90 that VTI already holds. If you want that tilt, set a fixed percentage and consider QQQM for the lower fee.
Is QQQ still a unit investment trust?
No. After the market close on 19 December 2025 it became an open-end fund, which lets it lend securities and invest dividends before paying them out. Its fee fell from 0.20% to 0.18% at the same time.
Why is QQQ so much more expensive than VTI?
QQQ charges 0.18% and VTI 0.03%. The issuers do not break the fees down further, so we cannot say how much of QQQ's fee is index licensing. For the same index at a lower price, QQQM charges 0.15%.
Is QQQ more volatile than VTI?
It is more concentrated, which usually means larger swings: its top ten companies were 47.7% of the fund against VTI's 33.4%, and technology was about 68% against 41%. We have not compared published volatility figures here because the issuers compute them over different windows.
Which is better for a Roth IRA?
Inside a Roth, taxes do not separate them, so it comes down to the role. VTI works as the whole stock allocation; QQQ or QQQM works as a side position for investors who want extra technology exposure.
Cite This Page
Journalists, educators and bloggers are welcome to cite this comparison. Please link back so readers can reach the underlying filings.
"QQQ vs VTI: 96% of QQQ Is Already Inside VTI, at Six Times the Fee." Wealthy Pot, 2026. https://wealthypot.com/qqq-vs-vti/
Related comparisons: QQQ vs QQQM · QQQ vs VOO · VTI vs VOO · IVV vs VTI · VUG vs QQQ · SCHG vs QQQ · All ETF comparisons
