Core Insights - The Vanguard Growth ETF (VUG) and Invesco QQQ Trust (QQQ) are both popular choices for investors seeking exposure to U.S. large-cap growth stocks, with VUG offering lower fees and broader diversification compared to QQQ [1][2] Cost and Size Comparison - VUG has an expense ratio of 0.04%, significantly lower than QQQ's 0.20%, which translates to $4 versus $20 in fees per $10,000 invested annually [3][8] - As of December 2025, VUG has $353 billion in assets under management (AUM), while QQQ has $403 billion [3] Performance Metrics - Over the past year, VUG returned 14.4% while QQQ returned 16.6% [3] - The maximum drawdown over five years for VUG was -35.61%, compared to -35.12% for QQQ [4] - A $1,000 investment in VUG would have grown to $1,984 over five years, while the same investment in QQQ would have grown to $2,033 [4] Holdings and Sector Allocation - QQQ tracks the NASDAQ-100 Index and holds 101 stocks, with a sector allocation of 55% technology, 17% communication services, and 13% consumer cyclical [5] - VUG holds 160 stocks with a similar sector tilt: 53% technology, 14% communication services, and 14% consumer cyclical [6] Investment Considerations - Both ETFs have a strong tilt towards technology and contain similar top holdings, but VUG's greater diversification may appeal to investors seeking reduced volatility [7][9] - The choice between VUG and QQQ largely depends on the investor's preference for diversification versus potential higher returns, as both funds have shown similar earnings over the last five years [10]