QQQ vs. VTI: Which ETF Should Be the Bedrock of Your Portfolio?

Group 1 - The Nasdaq 100 has historically outperformed the S&P 500, particularly due to stronger gains in the tech sector, with QQQ NAV increasing by 8.94% in Q3 2025 compared to the S&P 500's 8.12% [1] - There is a discussion on whether to invest in the tech-heavy Invesco QQQ Trust (QQQ) or the broader Vanguard Total Stock Market Index ETF (VTI) [2] - The QQQ is likely to have more AI hype priced into it compared to the S&P 500 or broader market indices, which could lead to higher returns if mega-cap tech companies successfully capitalize on AI investments [3] Group 2 - Traditional companies outside of tech are increasingly integrating AI into their operations, potentially benefiting from multiple expansions if their AI strategies yield significant gains [4] - The QQQ currently has a price-to-earnings (P/E) multiple of approximately 34.6, which is about 30% higher than the VTI's P/E of 28, indicating a premium for tech exposure [5] - The elevated P/E ratio of QQQ may lead to greater volatility and potential losses if investor sentiment shifts away from tech and AI investments, especially if unexpected advancements in AI emerge [6]