Wealthy PotQQQM vs VUG: 63% Overlap, and VUG Puts More in Its Top Three
Table of Contents
The Short Answer
- The overlap is 63%. Matching QQQM's SEC holdings filing for 31 May 2026 against VUG's for 30 June 2026, the smaller weight of every shared position adds up to 62.6%. The 54 shared companies were 74% of QQQM and 79% of VUG.
- VUG costs a fifth as much. Vanguard's prospectus filed in April 2026 lists VUG at 0.03%, restated from the 0.04% it charged in each of 2021 to 2025. QQQM charges 0.15%. That is $3 against $15 a year on $10,000.
- VUG is the more top-heavy fund. Its ten largest companies were 63.1% of the fund against QQQM's 50.3%. NVIDIA, Apple and Alphabet alone were 34.6% of VUG and 22.1% of QQQM.
- QQQM has returned more. To 30 June 2026: 16.52% a year over five years against VUG's 13.18%. For ten years, QQQ (same index, older fund) returned 22.07% a year against VUG's 18.02%.
- VUG has a new name. Since 29 July 2026 it is the Vanguard Morningstar Growth ETF, tracking the Morningstar US Large Cap Growth Index. Same ticker, same fund, same strategy.
- Pick one. Both are large-cap growth funds built on the same handful of giants.
How Much QQQM and VUG Share
Both funds report every holding to the SEC. The latest filings available are one month apart, QQQM at 31 May 2026 and VUG at 30 June 2026, because their fiscal years end in different months. We matched them with the same data and method as the site's Portfolio Overlap Checker.
| QQQM (31 May 2026) | VUG (30 Jun 2026) | |
|---|---|---|
| Companies held | 102 | 144 |
| Companies held by both | 54 | |
| Overlap (smaller weight of each shared holding, summed) | 62.6% | |
| Share of the fund in companies the other also owns | 74.0% | 78.8% |
| Share of the fund in companies the other does not own | 25.9% (48 names) | 21.2% (90 names) |
Most of each fund is the same companies. The difference sits in the remaining quarter.
What QQQM owns that VUG does not (26% of QQQM): Micron at 4.78%, Walmart 2.47%, Cisco 2.08%, Qualcomm 1.17%, Linde 1.01%, T-Mobile 0.90%, Analog Devices 0.88%, PepsiCo 0.86%, Amgen 0.79% and Gilead 0.73%. These are large Nasdaq-listed companies that Morningstar's index does not class as growth stocks.
What VUG owns that QQQM does not (21% of VUG): Eli Lilly at 2.81%, Visa 1.54%, Mastercard 1.13%, GE Vernova 0.89%, Oracle 0.71%, Amphenol 0.61%, General Electric 0.55%, McDonald's 0.54%, Arista Networks 0.52% and Boeing 0.48%. These are growth companies listed on the New York Stock Exchange, plus payment networks the Nasdaq-100 leaves out as financials.
Compared with Schwab's growth fund, VUG overlaps QQQM a little more (62.6% against 59.4% for SCHG), mainly because VUG also owns Intel, Lam Research and Applied Materials, chipmakers SCHG did not hold.
QQQM vs VUG Side by Side
| QQQM | VUG | |
|---|---|---|
| Full name | Invesco NASDAQ 100 ETF | Vanguard Morningstar Growth ETF (Vanguard Growth ETF until 29 Jul 2026) |
| Index | Nasdaq-100 Index | Morningstar US Large Cap Growth Index (CRSP US Large Cap Growth Index until 29 Jul 2026) |
| How stocks get in | 100 of the largest non-financial companies on Nasdaq-affiliated exchanges | Large U.S. companies classed as growth stocks, any exchange |
| Expense ratio | 0.15% | 0.03% |
| Prospectus cost on $10,000, 10 years | $192 | $39 |
| Holdings | 103 (2 Oct 2026) | 147 (31 Aug 2026) |
| Ten largest companies, share of fund | 50.3% (31 May 2026) | 63.1% (30 Jun 2026) |
| Technology weight (ICB) | 68.0% (30 Sep 2026) | 69.8% (31 Aug 2026) |
| Legal form | Standalone ETF | ETF share class of a Vanguard mutual fund |
| Size | $111.67bn (2 Oct 2026) | ETF class $232.9bn; whole fund $384.6bn (31 Aug 2026) |
| 30-day SEC yield | 0.42% (1 Oct 2026) | 0.35% (30 Sep 2026) |
| Portfolio turnover, last fiscal year | 6% | 12% |
| Inception | 13 Oct 2020 | 26 Jan 2004 |
Sectors look closer than you might expect. Both issuers classify with the Industry Classification Benchmark, which puts Alphabet and Meta under technology, so the technology weights are almost identical: 68.0% for QQQM and 69.8% for VUG. The real sector differences are smaller slices. QQQM had 5.9% in telecommunications and 1.7% in consumer staples against VUG's 1.5% and 0.2%. VUG had 7.3% in industrials and 1.3% in financials against QQQM's 2.8% and none listed. The two pages report one month apart.
VUG Is the More Top-Heavy Fund
QQQM holds about 100 stocks and VUG about 147, so it is easy to assume QQQM is the concentrated one. At the top, it is not.
| Share of the fund | QQQM (31 May 2026) | VUG (30 Jun 2026) |
|---|---|---|
| NVIDIA | 8.13% | 12.63% |
| Apple | 7.26% | 11.67% |
| Alphabet (both share classes) | 6.75% | 10.29% |
| Microsoft | 5.30% | 7.61% |
| Largest 10 | 50.27% | 63.06% |
| Largest 25 | 73.14% | 78.12% |
| Largest 50 | 88.43% | 88.22% |
The reason is the weighting rule. Invesco's prospectus describes the Nasdaq-100 as "modified market capitalization-weighted", with no security above 15% at the annual weight adjustment and no issuer above 24% at the quarterly one. Those limits hold the largest names down. VUG's prospectus describes no comparable cap and says the fund may become nondiversified "solely as a result of tracking an index", so its three largest holdings were more than a third of the fund.
If concentration in a few giants is what worries you, VUG is the less comfortable fund, despite holding more stocks. If narrowness across the whole portfolio is the worry, they are similar: both funds had about 88% of their money in their top 50 holdings.
What Changed in 2026
Older comparisons of these two funds are out of date in three ways.
- VUG got cheaper. Vanguard's prospectus filed 28 April 2026 lists total annual operating expenses of 0.03% for the ETF shares, "restated to reflect current fees". The same prospectus shows a 0.04% expense ratio in each of 2021 through 2025.
- VUG was renamed. Morningstar acquired the Center for Research in Security Prices, and a Vanguard supplement made the new names "effective as of July 29, 2026", adding that each fund's "investment objective, strategies, and polices remain unchanged." The ticker and CUSIP did not change. The fact sheet dated 30 June 2026 still says CRSP because it predates the switch. More detail is in SCHG vs VUG.
- The Nasdaq-100 changed its rules. From 1 May 2026, per an Invesco supplement, the index draws from all "U.S. Nasdaq-affiliated listing exchanges" and can add a large new listing on a "fast entry" basis after 15 trading days if it ranks within the top 40 constituents. On 2 October 2026 Invesco listed Space Exploration Technologies at 2.82% of QQQM. VUG already held it at 0.29% on 30 June 2026.
What the Difference Has Been Worth
All figures are average annual total returns at net asset value to 30 June 2026, the latest quarter-end both issuers had published.
| Annualized, to 30 Jun 2026 | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| QQQM | 34.17% | 26.66% | 16.52% | not yet (launched Oct 2020) |
| QQQ, same Nasdaq-100 index | 34.03% | 26.55% | 16.45% | 22.07% |
| VUG | 18.61% | 22.92% | 13.18% | 18.02% |
| QQQM minus VUG | +15.56 | +3.74 | +3.34 | +4.05 (using QQQ) |
| Nasdaq-100 Index | 34.38 | 26.83 | 16.68 | 22.33 |
| Spliced Growth Index (VUG's benchmark) | 18.61 | 22.96 | 13.21 | 18.05 |
The one-year gap of more than fifteen points is unusual. The part of QQQM that VUG does not own is led by Micron, Cisco and Qualcomm, so a strong year for a few chip and networking stocks can open a wide short-term gap. We have not run an attribution, so treat that as context rather than a measured cause. Over five and ten years the Nasdaq-100 led by three to four points a year, the result of one decade in which large Nasdaq technology companies drove the market.
For scale, a hypothetical $10,000 compounding for ten years at QQQ's 22.07% ends near $73,467; at VUG's 18.02% it ends near $52,427. That is arithmetic on a realized decade, not a forecast. It ignores taxes and trading costs, and the next ten years can reverse the order.
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
Choose VUG if cost and breadth of exchanges matter most. At 0.03% it is cheaper than QQQM by 0.12 points a year, and it owns growth companies wherever they list, including Eli Lilly, Visa and Oracle. Accept that a third of the fund sits in three stocks.
Choose QQQM if you want the Nasdaq-100 specifically. You pay more for a portfolio with capped mega-cap weights, more semiconductors and staples, and almost no financials. It suits investors who want the index itself, or who prefer the giants trimmed.
Hold VIGAX at Vanguard? That is the Admiral share class of the same Vanguard Growth Index Fund that VUG belongs to, and Vanguard's fee table lists no fee for converting to ETF shares. That is a reason to stay in the Vanguard fund family rather than sell and buy QQQM in a taxable account.
In an IRA or Roth IRA, switching costs nothing in tax, so choose on fee and portfolio. In a taxable account, both funds yield under half a percent, and VUG paid no capital gains distributions in any of the five years to 2025 per its prospectus. If you already own one at a gain, direct new money to the other rather than selling.
Already own VOO or VTI? Either fund adds to the same mega-caps you already hold. See QQQM vs VOO before stacking them.
Do not own both by accident. With 63% overlap the pair behaves like one growth fund with two fees.
Sources & Methodology
- Invesco Exchange-Traded Fund Trust II, Form 485BPOS filed 18 Dec 2025 and the Invesco supplement dated 30 Apr 2026: QQQM's fee table, cost example, turnover and index rules.
- Vanguard Index Funds, Form 485BPOS filed 28 Apr 2026: VUG's ETF Shares fee table, cost example, conversion fee, turnover and five-year financial highlights.
- Vanguard supplement dated 29 Jul 2026: the fund and index renaming.
- QQQM Form N-PORT, period ended 31 May 2026 and VUG Form N-PORT, period ended 30 Jun 2026: holdings behind the overlap and concentration tables.
- Vanguard VUG fact sheet, 30 Jun 2026 and the Vanguard VUG profile page: returns, top ten, holdings count, net assets, sector weights and yield.
- Invesco QQQM fund page and Invesco QQQ fund page: returns, holdings, sector weights, net assets and yield, read 4 Oct 2026.
How the overlap was computed. For each company both funds hold we took the smaller of the two weights and summed them, the method the site's overlap checker uses. Weights come from each N-PORT filing's percent-of-net-assets field with share classes combined. The filings are a month apart, which we cannot avoid because the two funds report on different quarterly cycles.
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. QQQM has no ten-year history, so the ten-year comparison uses QQQ. Sector weights come from each issuer's website, one month apart, and are not tagged in an SEC filing on a common date.
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: QQQM vs VUG
Is QQQM or VUG better?
VUG is cheaper, 0.03% against 0.15%, and owns growth stocks on every exchange. QQQM has the stronger record, 16.52% a year over five years to 30 June 2026 against 13.18%. For a long-term core growth holding, cost favours VUG; for the Nasdaq-100 specifically, QQQM is the lower-cost route.
How much do QQQM and VUG overlap?
62.6% by weight, matching QQQM's SEC holdings filing for 31 May 2026 against VUG's for 30 June 2026. The 54 shared companies were 74.0% of QQQM and 78.8% of VUG.
Should I own both QQQM and VUG?
Usually not. Both are built on NVIDIA, Apple, Alphabet and Microsoft, so holding both doubles that bet with two fees. Choose one, or set a deliberate split if you want the Nasdaq-100's extra chipmakers.
Is VUG's expense ratio 0.03% or 0.04%?
0.03%. Vanguard's prospectus filed 28 April 2026 restates it at 0.03% for the ETF shares. It was 0.04% in each year from 2021 to 2025.
Did VUG change its name?
Yes. Since 29 July 2026 it is the Vanguard Morningstar Growth ETF, tracking the Morningstar US Large Cap Growth Index, after Morningstar acquired CRSP. Vanguard says the objective and strategy are unchanged, and the ticker is still VUG.
Which is more concentrated, QQQM or VUG?
VUG at the top. Its ten largest companies were 63.1% of the fund at 30 June 2026, and NVIDIA, Apple and Alphabet alone were 34.6%. QQQM's top ten were 50.3% at 31 May 2026, because the Nasdaq-100 caps its biggest weights.
Which is better in a Roth IRA?
Inside a Roth, taxes do not separate them. VUG wins on fee; QQQM is the choice if you want the Nasdaq-100 itself. You can switch inside the account without a tax bill.
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"QQQM vs VUG: 63% Overlap, and VUG Puts More in Its Top Three." Wealthy Pot, 2026. https://wealthypot.com/qqqm-vs-vug/
Related comparisons: VUG vs QQQ · QQQ vs QQQM · QQQM vs SCHG · SCHG vs VUG · QQQM vs VOO · VUG vs VOO · All ETF comparisons
