Wealthy PotQQQM vs VOO: The Nasdaq-100 vs the S&P 500
QQQM and VOO are two of the most popular index ETFs, but they track very different baskets. QQQM follows the tech-heavy Nasdaq-100; VOO follows the broad S&P 500. QQQM has led over recent years, but it's more concentrated, more volatile, and five times the fee. This guide uses figures pulled straight from the funds' own documents.
The Short Answer
- Want one diversified, low-cost core? VOO. The S&P 500 spans all sectors and 500 companies at just 0.03%, the standard U.S. large-cap foundation.
- Want a concentrated bet on large-cap tech and growth? QQQM. It tracks the Nasdaq-100 (~103 mostly-tech names, no financials), has outrun the S&P over recent years, and is the low-cost version of QQQ, but at 0.15% it costs more than VOO and swings harder.
This is a diversification-and-cost decision, not two totally separate markets, VOO already holds most of QQQM's top names, just with less weight and more balance around them.
What Each One Owns
- QQQM is the Invesco NASDAQ 100 ETF. It tracks the Nasdaq-100 Index, the ~100 largest non-financial companies listed on the Nasdaq, so it's heavily weighted toward technology and has no financial-sector stocks. It holds about 103 positions and is non-diversified. It tracks the same index as the older, pricier QQQ, QQQM is simply the lower-fee version (see QQQ vs QQQM).
- VOO is the Vanguard S&P 500 ETF. It tracks the S&P 500, about 506 large-cap U.S. companies across all 11 sectors, including financials, healthcare, energy, and industrials that the Nasdaq-100 underweights or omits.
QQQM vs VOO Side by Side
| Feature | QQQM | VOO |
|---|---|---|
| Fund | Invesco NASDAQ 100 ETF | Vanguard S&P 500 ETF |
| Index tracked | Nasdaq-100 | S&P 500 |
| Expense ratio | 0.15% | 0.03% |
| What it holds | ~103 large non-financial Nasdaq stocks | ~506 large-cap stocks (all sectors) |
| SEC 30-day yield | ~0.46% | ~0.98% |
| Sector profile | Tech-heavy, no financials | Broad, all 11 sectors |
| Return (avg annual, NAV) | 18.18% since inception (2020); 5-yr 16.52% | 15.47% over 10 years |
| Inception | Oct 13, 2020 | Sep 7, 2010 |
Note the returns cover different periods, QQQM has only existed since 2020. For a like-for-like decade of Nasdaq-100 vs S&P 500 history, the older QQQ tracks the same index; see QQQ vs VOO.
The Concentration Trade-Off
The Nasdaq-100 has beaten the S&P 500 over most of the past decade, driven by mega-cap technology. But that edge is the same thing as its risk: with ~103 holdings, no financials, and a heavy tech tilt, QQQM is far more concentrated than VOO's 500-stock, all-sector spread. When tech leads, QQQM surges; when tech falls out of favor, it drops harder, in the 2022 selloff the Nasdaq-100 fell substantially more than the S&P 500.
You're also paying 0.15% versus VOO's 0.03%, five times as much, for that concentration. Over decades the fee gap is a real, if modest, drag. Preferring QQQM is a bet that tech-led growth keeps winning; VOO makes no such bet.
Which One Fits You
Choose VOO if: you want a diversified, dirt-cheap core across the whole large-cap market and would rather not concentrate in one sector. It's the lower-risk, lower-cost foundation for most portfolios.
Choose QQQM if: you specifically want the Nasdaq-100's tech-and-growth tilt, you have a long horizon and can tolerate deeper drawdowns, and you understand the concentration. Many investors hold it as a satellite tilt around a broad core rather than as the whole portfolio. If you're deciding between QQQM and its older sibling, QQQM wins on fee, see QQQ vs QQQM.
FAQ
Is QQQM or VOO better?
They track different indexes. VOO is the diversified S&P 500 at 0.03%; QQQM is the tech-heavy Nasdaq-100 at 0.15%. QQQM has outperformed recently but is more concentrated and volatile. For a single core, VOO; for a growth/tech tilt, QQQM, often held as a satellite around a broad core.
What's the difference between QQQM and VOO?
QQQM holds ~103 large non-financial Nasdaq companies (very tech-heavy); VOO holds ~506 S&P 500 companies across all sectors. QQQM is more concentrated and pricier (0.15% vs 0.03%); VOO is broader, cheaper, and higher-yielding.
Is QQQM the same as QQQ?
Almost, they track the identical Nasdaq-100 Index. QQQM is Invesco's lower-cost version (0.15% vs QQQ's higher fee), aimed at buy-and-hold investors; QQQ is older and more heavily traded. For long-term holding, QQQM is the cheaper choice.
Is QQQM riskier than VOO?
Yes. Its heavy technology concentration and lack of financials make it swing more than the broad, all-sector S&P 500 in both directions.
Related comparisons: QQQ vs VOO · QQQ vs QQQM · VGT vs QQQ · SPY vs QQQ · All ETF comparisons
Primary sources: expense ratios, indexes, holdings, yields, and returns are from the issuers' official documents for QQQM (Invesco) and VOO (Vanguard), figures as of Jun 30, 2026 (VOO SEC yield as of Aug 31, 2026). For background, see the SEC's Investor.gov guide to mutual funds and ETFs.
This article is for educational purposes only and is not investment advice. Investing involves risk, including possible loss of principal, and past performance does not guarantee future results. Concentrated, sector-tilted funds can be more volatile than the broad market. Expense ratios, yields, and holdings change over time; confirm current figures on the issuer's site before investing. Consult a qualified financial professional before making investment decisions.
