Comparing Two of the Top Buy-and-Hold ETFs for Retail Investors: QQQ vs. VOO

Core Insights - The Invesco QQQ Trust (QQQ) is tech-heavy and has shown strong recent performance, while the Vanguard S&P 500 ETF (VOO) offers broader diversification, lower fees, and a higher yield [1][2] Cost Comparison - QQQ has an expense ratio of 0.20%, while VOO has a significantly lower expense ratio of 0.03% [3][4] - VOO also offers a higher dividend yield of 1.1% compared to QQQ's 0.5% [3][4] Performance Metrics - As of November 28, 2025, QQQ has a 1-year return of 21.5%, outperforming VOO's 13.5% [3] - Over five years, QQQ's maximum drawdown is -35.12%, compared to VOO's -24.52% [5][10] - The growth of a $1,000 investment over five years is $2,067 for QQQ and $1,889 for VOO [5] Composition and Sector Exposure - VOO tracks the S&P 500 Index with 505 companies, allocating 36% to technology, 13% to financial services, and 11% to consumer cyclicals [6][7] - QQQ is more concentrated, with 54% in technology, 17% in communication services, and 13% in consumer cyclicals [7] - Major holdings for both ETFs include NVIDIA, Apple, and Microsoft, but QQQ has slightly higher individual weights in these stocks [7] Investment Appeal - VOO is suitable for investors seeking broad, low-cost coverage of the U.S. large-cap universe, while QQQ appeals to those looking for concentrated growth in technology [6][10] - Both ETFs are considered excellent choices for investment portfolios, despite their low dividend yields [11]