ETF Face-Off Update: VOO, QQQ and TQQQ Lay Out Clear Cost, Yield and Risk Tradeoffs

Overview

• QQQ has outpaced VOO over the past year and five years, though it carries higher volatility and a deeper five-year max drawdown of 35.12% versus 24.52%.
• VOO’s 0.03% expense ratio undercuts QQQ’s 0.20%, its dividend yield is higher at 1.1% versus 0.5%, and assets under management are far larger at about $1.5 trillion versus $403 billion.
• Sector exposure diverges: QQQ concentrates in technology at 54% with 17% in communication services, while VOO spreads holdings more broadly with 36% in technology, 13% in financials, and 11% in consumer cyclicals.
• Among leveraged funds, TQQQ shows a 1‑year return of 36.5% versus 18.8% for SSO, but its five‑year max drawdown is far steeper at 81.76% versus 46.77%, reflecting much higher beta at 3.36 versus 2.02.
• TQQQ and SSO employ daily leverage resets, which amplify gains and losses and can cause path‑dependent performance that diverges from long‑term index moves.