Over the past decade the Nasdaq-100 has beaten the S&P 500 by roughly 6 percentage points a year, and the S&P 500 has edged the total market, but the higher return came with more risk and a higher price tag.

Three funds dominate this debate: the Vanguard Total Stock Market ETF (VTI), the Vanguard S&P 500 ETF (VOO) and the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100. Below is how each has performed over one, three, five and ten years, what you pay for that performance, and how to judge any index ETF before you buy it.

Figures are approximate, as of early October 2026, and drawn from several data providers that differ by a point or two. VTI’s 3-, 5- and 10-year numbers are estimated from its usual gap to VOO.

How they performed

QQQ led VOO and VTI in every period, and its lead widened to about 6 points a year over ten years.

VOO has edged VTI over five and ten years, while the two were level this year.

What the extra QQQ return cost

QQQ’s lead is real, but it came with deeper losses and heavier concentration in a few stocks.

• Volatility: One analysis put annualized volatility at about 20% for QQQ versus about 15% for VOO.
• Drawdowns: In 2022 QQQ lost about 32.6% for the calendar year, versus about 18.2% for VOO. Its worst peak-to-trough fall in the last decade was about 39.6%, versus about 34% for VOO in the 2020 crash.
• Concentration: QQQ holds about 100 stocks, with its top ten near 47% of the fund. VOO’s top ten are near 38%. Technology is roughly half or more of QQQ.
• Cost: QQQ’s expense ratio is about 0.18-0.20%, against 0.03% for VTI and VOO.

VTI and VOO behave almost identically. VTI adds roughly 3,000 mid- and small-cap stocks, but its top holdings are nearly the same as VOO’s, so the 10-year return gap has rarely exceeded 0.5% in either direction. VOO has led slightly over five and ten years because large caps have beaten small caps.

Valuation and income

QQQ trades at a P/E about 30% above the other two and yields less than half as much.

Price/book figures conflict across providers because each calculates fund-level ratios differently, and I did not find a current VTI figure. VTI’s P/E comes from an older comparison, so treat it as a rough guide. QQQ’s higher multiple and lower yield fit a fund full of fast-growing companies that reinvest earnings. Part of its past outperformance came from its multiple expanding, which may not repeat.

Five metrics to validate any index ETF

These five test whether an index ETF does its job cheaply and reliably, whatever index it follows.

1. Expense ratio. The annual fee is the one cost you can predict. For broad-market index funds, about 0.03-0.10% is competitive.
2. Tracking difference and tracking error. Tracking difference is how far the fund’s return falls short of its index over time. Tracking error is how much that gap varies. A good fund trails by roughly its expense ratio.
3. Liquidity. Large assets and a bid-ask spread of a penny or so keep your trading costs low. Small, thinly traded ETFs cost more to trade and carry closure risk.
4. Concentration. Top-10 weight and number of holdings show how diversified you really are. QQQ’s top ten near 47% versus about 38% for VOO is the kind of gap to notice.
5. Valuation. P/E, with price/book or price/sales as a cross-check, shows what you pay for each dollar of earnings. It does not predict next year, but a high multiple means you are counting on strong growth.

Returns are not on the list, because past performance mostly reflects what the index did, not how well the ETF is run. Check volatility and maximum drawdown separately to judge whether you can stomach the fund.

Which one fits you

VTI or VOO works as a core holding for most investors, and QQQ works as a growth tilt on top.

• Choose VTI or VOO if you want broad, low-cost, lower-volatility exposure. They are close enough that the choice is mostly about whether you want small and mid caps included.
• Add QQQ if you want more technology and growth exposure and can tolerate drawdowns near 40%. A modest slice alongside a core fund is a common approach, and it overlaps heavily with VOO’s top holdings.
• Remember the trade-off: QQQ has led for over a decade, which does not guarantee it keeps leading.

This post is general information, not personalized financial advice. Consider your goals, time horizon and risk tolerance, or speak with a financial advisor.

Sources

Figures come from search-result summaries of these pages, which I did not open in full, so treat them as approximate.

• Total Real Returns
• FinanceCharts
• Dividend Vision
• Dividend Watch
• ETF.com
• Invesco QQQ factsheet
• Digrin: VOO
• 24/7 Wall St: QQQ vs VTI