Should I invest in VOO or QQQ? (2024)

Should I invest in VOO or QQQ?

Moreover, the Nasdaq 100 index has generated faster 10-year growth than major industry benchmarks, including the S&P 500. For conservative-minded investors, VOO's lower expense ratio and higher dividend yield is more appealing but risk-seeking investors may prefer QQQ in spite of its higher volatility.

Is QQQ worth investing in?

QQQ appears to be the single best long-term investment option for investors seeking total returns due to its ability to expose holders to top U.S. companies on an ongoing basis. The Nasdaq 100 has consistently outperformed the S&P 500 in terms of total returns, making it a favorable choice for long-term investors.

What ETF is better than QQQ?

For investors seeking an alternative to QQQ's mega-cap exposure, the Invesco S&P 500 Top 50 ETF (XLG) is an excellent option. XLG tracks the S&P 500 Top 50 Index, which, like QQQ, is heavily weighted towards top-tier tech and consumer stocks.

Is QQQ better than Vanguard?

VGT - Performance Comparison. In the year-to-date period, QQQ achieves a 5.41% return, which is significantly higher than VGT's 4.63% return. Over the past 10 years, QQQ has underperformed VGT with an annualized return of 18.48%, while VGT has yielded a comparatively higher 20.21% annualized return.

Is QQQ better than S&P?

QQQ is better to buy for investments of a year or more. The NASDAQ-100 index dynamics are more volatile compared to the S&P 500. With a shorter investment horizon, there's a high risk of a decrease in value.

What is the downside to investing in QQQ?

The QQQ ETF offers buy-and-hold investors low expenses and long-term growth potential with enough diversification to avoid the risks of betting on one company. On the downside, long-term investors in QQQ must deal with sector risk, possible overvaluation, and the absence of small caps.

Is it wise to invest in VOO?

Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.

Is QQQ good long term investment?

The QQQ gained 18.1% annually over the past 10 years. That tops all of the nearly 300 ETFs in the category. That easily outpaces the 12.6% average annual gain of the SPDR S&P 500 ETF Trust (SPY) — the cornerstone of most investors' portfolios. And the QQQ is cheap, only charging 0.2%.

What is the difference between ETF VOO and QQQ?

VOO - Volatility Comparison. Invesco QQQ (QQQ) has a higher volatility of 3.98% compared to Vanguard S&P 500 ETF (VOO) at 3.27%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure.

Is VOO or VTI better?

However, if you know that you'd like a bit more exposure to smaller and medium-sized companies or just want to invest in more stocks overall, VTI is your best bet. VOO, meanwhile, is the better option for investors who want to focus heavily on large cap companies.

What outperforms QQQ?

Bloomberg recently reported that only one equity mutual fund, the Baron Partners Fund, has outperformed QQQ over the past 5, 10, and 15 years, mainly due to its outsized exposure to Tesla. Ron Baron, a longtime Elon Musk supporter and Tesla bull, told CNBC that he expects shares to hit $500 in 2025 and $1,500 by 2030.

What is the 10 year return on QQQ?

Invesco QQQ Market Price: YTD: 54.85%; 1YR: 54.85%; 3YR: 9.98%; 5YR: 22.40%; 10YR: 17.66%; Since Inception: 9.44%.

Is QQQ a good investment 2024?

QQQ, QQQM Have the Earnings Goods

“All 11 sectors are predicted to report year-over-year earnings growth in CY 2024. Five of these sectors are projected to report double-digit growth led by the Health Care, Communication Services, and Information Technology sectors,” noted FactSet's John Butters.

Should I own both VOO and VTI?

Or, you could also invest in both, for example, by putting half in VOO and half in VTI. Here's a summary of which one to choose: If you want to own only the biggest and safest stocks, choose VOO. If you want more diversification and exposure to mid-caps and small-caps, choose VTI.

Is VOO a good investment for beginner investors?

Vanguard S&P 500 ETF (VOO)

For example, a young investor looking for long-term growth may pick a low-cost U.S. equity ETF like VOO, which tracks the S&P 500 index. Historically, this index has delivered excellent performance, but has also been quite volatile, so a high risk tolerance is essential.

What is the future value of VOO?

VOO 12 Months Forecast

Based on 505 Wall Street analysts offering 12 month price targets to VOO holdings in the last 3 months. The average price target is $526.77 with a high forecast of $619.26 and a low forecast of $428.35. The average price target represents a 13.62% change from the last price of $463.61.

How many ETFs should I have in my portfolio?

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

What is the most aggressive ETF?

The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.86B in assets. In the last trailing year, the best-performing Aggressive ETF was AOA at 17.32%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.

Is QQQ the best Nasdaq ETF?

QQQ is the most popular Nasdaq ETF because it uses a full replication strategy, meaning this ETF includes every security in the Nasdaq Index rather than a representative sample. Invesco QQQ offers an annualized return of 9.5% since its inception in 1999.

What will QQQ be worth in 2025?

Invesco QQQ stock price stood at $431.06

According to the latest long-term forecast, Invesco QQQ price will hit $450 by the end of 2024 and then $500 by the middle of 2025. Invesco QQQ will rise to $600 within the year of 2026, $700 in 2028, $800 in 2029, $900 in 2031 and $1000 in 2034.

Does QQQ pay monthly?

Defiance Nasdaq 100 Enhanced Options Income ETF (QQQY)

QQQY has a dividend yield of 38.35% and paid $6.09 per share in the past year. The dividend is paid every month and the last ex-dividend date was Apr 1, 2024.

Why is QQQ better than VOO?

Average Return. In the past year, QQQ returned a total of 36.11%, which is significantly higher than VOO's 23.54% return. Over the past 10 years, QQQ has had annualized average returns of 18.45% , compared to 12.53% for VOO. These numbers are adjusted for stock splits and include dividends.

Do VOO and QQQ overlap?

While these funds do not track the same index, they both invest in stocks of major U.S. companies. Their net holdings overlap and their quotes move mostly in the same direction. What are QQQ and VOO?

Does VOO pay dividends quarterly?

VOO has a dividend yield of 1.39% and paid $6.41 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 22, 2024.

What is the 10 year return on VOO vs VTI?

Over the past 10 years, VOO has had annualized average returns of 12.67% , compared to 12.05% for VTI. These numbers are adjusted for stock splits and include dividends.