Read on Twitter
I've been getting this question a lot so decided to make this thread about it
VGT vs. QQQ - Which is best?
[THREAD]
VGT vs. QQQ - Which is best?
[THREAD]
What is VGT?
"Vanguard Information Technology" is an ETF managed by Vanguard which includes 334 companies.
Top 10 companies in this ETF account for ~60% of its holdings.
Top 10 holdings include - Apple, Microsoft, Visa, Mastercard, Intel, NVIDIA, Adobe, Paypal, and Salesforce
"Vanguard Information Technology" is an ETF managed by Vanguard which includes 334 companies.
Top 10 companies in this ETF account for ~60% of its holdings.
Top 10 holdings include - Apple, Microsoft, Visa, Mastercard, Intel, NVIDIA, Adobe, Paypal, and Salesforce
What is QQQ?
QQQ is the trading symbol for the Nasdaq-100 index and is an ETF run by Invesco including 104 companies.
This ETF has a 47% allocation to information technology companies, but also includes communication, consumer tech, and healthcare.
QQQ is the trading symbol for the Nasdaq-100 index and is an ETF run by Invesco including 104 companies.
This ETF has a 47% allocation to information technology companies, but also includes communication, consumer tech, and healthcare.
There is no easy answer for why one is > than the other.
Instead, I recommend owning a variety of both for your investment goals.
If you're chasing dividends - VGT has a higher yield
If you're chasing returns - QQQ has a higher 10-yr return
Instead, I recommend owning a variety of both for your investment goals.
If you're chasing dividends - VGT has a higher yield
If you're chasing returns - QQQ has a higher 10-yr return
However, both are not immensely different in the short term.
EX: VGT = 1.22% yield vs. QQQ = .74% yield
EX: VGT = 17.63% return vs. QQQ = 18.09% return
EX: VGT = 1.22% yield vs. QQQ = .74% yield
EX: VGT = 17.63% return vs. QQQ = 18.09% return
What I want you to take away from this is don't focus on just one metric.
Instead if you're looking to invest for the long-term, consider adding both of these to your portfolio.
I'm extremely bullish on both ETF's and dollar cost average into both bi-weeky.
Instead if you're looking to invest for the long-term, consider adding both of these to your portfolio.
I'm extremely bullish on both ETF's and dollar cost average into both bi-weeky.
If you enjoyed this thread, please RT/like the original tweet so others can enjoy as well :)
