If you are looking for a growth-oriented exchange-traded fund (ETF) to invest in, you may have come across VUG and QQQ. These are two of the most popular and widely traded ETFs in the market, but they are not exactly the same.

In this article, we will compare VUG vs QQQ on various aspects, such as their holdings, performance, dividends, expenses, and risk. We will also help you decide which one may be more suitable for your investment goals and preferences.

Overview of VUG and QQQ

VUG and QQQ are both growth ETFs, which means they invest in companies that are expected to grow faster than the average market. However, they have some differences in how they select and weigh their holdings, as well as the index they track.

VUG is the Vanguard Growth Index Fund ETF Shares, which tracks the CRSP US Large Cap Growth Index. This index includes about 235 US companies that have a large market capitalization (over $10 billion) and exhibit growth characteristics, such as high earnings growth, high return on equity, and high expected earnings growth. VUG uses a market-cap weighting method, which means it allocates more funds to larger companies in the index.

QQQ is the Invesco QQQ Trust, which tracks the Nasdaq-100 Index. This index includes 100 of the largest US and international non-financial companies listed on the Nasdaq stock exchange based on market capitalization. QQQ also uses a market-cap weighting method, but it has a cap of 24% for any single holding to avoid concentration risk.

As you can see, QQQ has a narrower focus than VUG, as it only invests in non-financial companies listed on Nasdaq. This means that QQQ has a higher exposure to technology and innovation sectors, such as information technology, communication services, consumer discretionary, and health care.

VUG, on the other hand, has a broader exposure to various sectors, such as industrials, financials, consumer staples, and energy.

VUG vs. QQQ: Performance

One of the most important factors to consider when choosing between VUG and QQQ is their performance. How have they performed in the past, and how are they expected to perform in the future?

To compare their performance, we can use a tool called TradingView, which allows us to easily plot the price and total return charts of any ETFs or stocks. Price return is the change in the price of an ETF or stock over time, while total return is the change in the price plus any dividends or distributions paid by the ETF or stock over time.

The following TradingView chart shows the total return comparison of VUG and QQQ over the past five years:

As you can see, QQQ has outperformed VUG by a significant margin over the past five years. QQQ has gained 110% in price, while VUG has gained 87%. This means that if you had invested $10,000 in QQQ five years ago, you would have $21,000 today, while if you had invested in VUG, you would have $18,700 today.

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

VUG vs. QQQ: Dividend Yield

VUG and QQQ have the same dividend of 0.55%. This means that for every $100 you invest in VUG or QQQ, you receive $0.55 in dividends per year.

However, the dividend yield is not fixed and can change over time. The dividend yield depends on two factors: the dividend or distribution amount and the price of the ETF or stock. The dividend or distribution amount can increase or decrease depending on the profitability and payout policy of the companies or ETFs.

Therefore, it is possible that VUG may pay a higher or lower dividend than QQQ in the future, depending on how these factors change.

VUG vs. QQQ: Expense Ratio

Another factor to consider when choosing between VUG and QQQ is their expense ratio. The expense ratio is the annual fee charged by the ETF provider to cover the operating costs of the fund. The lower the expense ratio, the less you pay in fees and the more you keep in returns.

The expense ratio of VUG is 0.04%, while the expense ratio of QQQ is 0.20%. This means that for every $10,000 you invest in VUG, you pay $4 in fees per year, while for every $10,000 you invest in QQQ, you pay $20 in fees per year.

The difference in expense ratio may seem small, but it can add up over time and affect your long-term returns. For example, if you invest $10,000 in VUG and QQQ for 10 years and assume they both have an annual return of 10%, you will end up with $25,937 in VUG and $25,537 in QQQ. That’s a difference of $400 due to fees alone.

Factors to Consider When Choosing Between QQQ and VUG

As we have seen, VUG and QQQ have some similarities and differences that may affect your investment decision. Here are some factors to consider when choosing between them:

• Number of holdings: QQQ holds 102 stocks, while VUG holds about 235 stocks. This means that QQQ has a more concentrated portfolio than VUG and may be more exposed to specific companies or sectors. On the other hand, VUG has a more diversified portfolio than QQQ and may be less affected by individual companies or sectors.
• Performance: QQQ has outperformed VUG in terms of both price and total return over the past five years. However, past performance is not a guarantee of future results and may change over time. Moreover, performance should be evaluated in relation to risk and volatility.
• Expense ratio: QQQ has a higher expense ratio than VUG (0.20% vs 0.04%). This means that QQQ charges more fees than VUG and may reduce your net returns over time.
• Volatility: QQQ will come with slightly more volatility than VUG because it holds fewer companies. While this can provide higher returns, the downside risk is also greater.

The Financial Tech Wiz ETF Comparison Tool

You can use the ETF comparison tool below to compare over 2,000 ETFs and mutual funds with data I manually collected:

VUG vs. QQQ: Bottom Line

VUG and QQQ are both growth ETFs that offer exposure to some of the most successful and innovative companies in the market. However, VUG holds more companies than QQQ.

Therefore, the choice between VUG and QQQ may depend on your personal preference, risk tolerance, and investment horizon. If you prefer a more focused and aggressive growth strategy, you may opt for QQQ. If you prefer a more balanced and diversified growth strategy, you may opt for VUG.

You can also consider my other comparison articles as part of your research, including VOO vs. SCHD, VOO vs. SPY, JEPI vs. JEPQ, VUG vs. VOO, and JEPI vs. SCHD.

Before you go

If you want to keep educating yourself about personal finance, you must check out these posts as well:

What is the Most Successful Options Strategy

Options Trading for Income: The Complete Guide

Mark Minervini's Trading Strategy: 8 Key Takeaways

The Best Options Trading Books

TradingView Pricing Guide

The Best Laptops and Computers for Trading

The Best Monitors for Trading

How to Get a TradingView Free Trial

The Best TradingView Indicators

If you are looking for a low-cost way to invest in the top 500 companies on the stock market, you might be interested in comparing VFIAX vs. VOO.

Overview of VFIAX vs. VOO

VFIAX and VOO are both index funds that aim to replicate the performance of the S&P 500 index. However, they differ in their structure and how they are traded.

VFIAX is a mutual fund, which means that it is a pool of money from many investors that is managed by a fund manager. You can buy or sell shares of VFIAX directly from Vanguard at the end of each trading day based on the net asset value (NAV) of the fund.

VOO is an exchange-traded fund (ETF), which means that it is a collection of securities that trade on an exchange like a stock. You can buy or sell shares of VOO throughout the day at any price that the market determines, which may be higher or lower than the NAV of the fund.

As you can see in the TradingView comparison chart above, VOO and VFIAX provide nearly the same exact total returns.

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

VFIAX vs. VOO Dividend Yield Compared

The dividend yield of VFIAX and VOO are essentially identical, making it not a significant factor when comparing the two funds.

The dividend yield of VFIAX is 1.55%, while VOO is 1.56%.

Mutual Funds vs. ETFs Explained

VFIAX is a mutual fund, while VOO is an ETF. ETFs are more efficient investing vehicles for most investors due to their structure, taxation, and how they are traded.

• Structure: ETFs are traded on stock exchanges like individual stocks, while mutual funds are bought and sold directly from the fund company or a broker. Mutual funds, on the other hand, have to sell securities to meet redemptions or rebalance the portfolio, which can result in taxable events for the shareholders.
• Taxation: ETFs are generally more tax-efficient than mutual funds, especially for investors who hold them in taxable accounts. Due to the structure mentioned in the first bullet, anytime an investor sells a mutual fund, the fund manager must sell securities, which triggers taxable events for the fund. However, both ETFs and mutual funds are subject to capital gains taxes when the investor sells the fund for a profit.
• Trading: ETFs can be bought and sold throughout the day at the market price, which may differ from the net asset value (NAV) of the fund. ETFs also have bid-ask spreads, which are the differences between the prices at which buyers and sellers are willing to trade. Mutual funds are only traded once a day at the end of the day, based on the NAV of the fund. Mutual funds do not have bid-ask spreads, but they may have sales loads, which are fees charged by the fund company or the broker for buying or selling the fund.

VFIAX vs. VOO Minimum Investment

One of the drawbacks of investing in VFIAX is that it has a minimum investment requirement of $3,000. This means that you need to have at least $3,000 to open an account with Vanguard and buy shares of VFIAX.

VOO, on the other hand, has no minimum investment requirement. This means that you can buy as many or as few shares of VOO as you want, depending on your budget and goals. If you use a broker that allows you to buy fractional shares, such as tastytrade, you can invest in VOO with just a few bucks!

VFIAX vs. VOO Expense Ratios

Fund	Expense Ratio
VFIAX	0.04%
VOO	0.03%

The expense ratio of VFIAX is 0.04%, while the expense ratio of VOO is 0.03%. This means that for every $10,000 you invest in VFIAX, you pay $4 in fees per year, while for every $10,000 you invest in VOO, you pay $3 in fees per year.

While this difference may seem small, it can add up over time and make a noticeable difference in your long-term returns.

VFIAX vs. VOO Holdings Comparison

The holdings of VFIAX and VOO are essentially identical since they both track the S&P 500 index.

However, this difference is negligible and does not affect the overall performance or risk of the funds.

VFIAX vs. VOO Returns Comparison

The returns of VFIAX and VOO have been nearly identical since both funds track the S&P 500 index, but VFIAX has a slightly higher expense ratio, making it cost more to invest in.

Therefore, the difference in returns between VFIAX and VOO is very small, but it favors VOO slightly due to its lower expense ratio.

VFIAX vs. VOO | This One is Better!

Based on our comparison of VFIAX vs. VOO, we can conclude that overall, VOO is the best option for most people as ETFs are more liquid, the expense ratio is lower, and there is no minimum investment.

VOO offers you the same exposure to the S&P 500 index as VFIAX but with more flexibility and lower costs. You can buy or sell shares of VOO anytime during the day, pay less in fees, and invest as much or as little as you want.

VFIAX may be a good option for some people who prefer mutual funds over ETFs, have at least $3,000 to invest, and don’t mind paying a slightly higher expense ratio. However, for most people, these advantages are not worth giving up the benefits of VOO.

The Financial Tech Wiz ETF Comparison Tool

You can use the ETF comparison tool below to compare over 2,000 ETFs and mutual funds with data I manually collected:

Other ETF Comparisons

If you enjoyed this article on VFIAX vs. VOO, you might also like to check out our other ETF comparisons, such as:

• JEPI vs. JEPIX
• QQQ vs. SPY
• VTI vs. VOO
• VUG vs. VOO
• VTSAX vs. VFIAX

Two of the most popular funds that track the S&P 500 are the Fidelity 500 Index Fund (FXAIX) and the Vanguard S&P 500 ETF (VOO). Both funds aim to replicate the performance of the index by holding the same stocks in the same proportions.

But which fund is better for investors who want to invest in the S&P 500? Let’s compare FXAIX vs. VOO on several key factors and see how they stack up.

Overview of FXAIX and VOO

FXAIX is a mutual fund that was launched by Fidelity in 1988. It has an expense ratio of 0.015%, which is one of the lowest among mutual funds. It has over $300 billion in assets under management (AUM).

VOO is an exchange-traded fund (ETF) that was launched by Vanguard in 2010. It has an expense ratio of 0.03%, which is also very low among ETFs. It has over $800 billion in AUM.

As you can see in the image above, both VOO and FXAIX provide similar returns. If you want to compare the performance of other stocks and ETFs, you can sign up for a free TradingView account to view the returns of multiple stocks and ETFs on a single chart.

You can even adjust the returns to include dividends, making TradingView the best way to compare the returns of various stocks. When you use my link above, new users can also get a free trial and a discount on their upgraded membership.

FXAIX vs. VOO Dividend Yield

Fund	Dividend Yield
FXAIX	1.52%
VOO	1.53%

Both FXAIX and VOO pay dividends to their shareholders from the earnings of their underlying stocks.

FXAIX has a dividend yield of 1.52%, while VOO has a dividend yield of 1.53%. The difference between them is negligible and not a significant factor for choosing one over the other.

Both funds have similar dividend yields because they hold the same stocks that pay dividends.

FXAIX vs. VOO Expense Ratios

The expense ratio represents the drag on a fund’s performance that investors have to bear. Lower expense ratios mean higher returns for investors, all else being equal.

As mentioned earlier, FXAIX has an expense ratio of 0.015%, while VOO has an expense ratio of 0.03%.

Fund	Expense Ratio	Annual Fee per $10,000
FXAIX	0.015%	$1.50
VOO	0.03%	$3

This means that for every $10,000 invested in FXAIX, investors pay $2 in fees per year, while for every $10,000 invested in VOO, investors pay $3 in fees per year. The difference between them is minimal and not likely to have a significant impact on their long-term performance.

FXAIX vs. VOO Performance

Both FXAIX and VOO track the same index, so their performance should be very similar, barring any tracking errors or deviations.

Looking at their historical performance over the past 5 years, FXAIX and VOO had a total return of about 75%.

FXAIX vs. VOO Holdings

Holdings are the individual stocks that make up a fund’s portfolio. They determine the fund’s exposure to different sectors, industries, and market segments. Both FXAIX and VOO hold essentially the same stocks that constitute the S&P 500 index, with the same weights and proportions.

Mutual Funds vs. ETFs

One of the main differences between FXAIX and VOO is that FXAIX is a mutual fund, while VOO is an ETF. ETFs are much easier to actively trade, while mutual funds usually only update once per day.

Mutual funds are pooled investment vehicles that are managed by a fund company or an investment advisor. They issue and redeem shares directly to investors at the end of each trading day based on their net asset value (NAV). Investors can buy and sell mutual fund shares through the fund company or a broker.

ETFs are also pooled investment vehicles that are managed by a fund company or an investment advisor. However, they trade like stocks on an exchange throughout the trading day at market prices that may differ from their NAV. Investors can buy and sell ETF shares through a broker.

Some of the advantages and disadvantages of mutual funds vs ETFs are:

• Mutual funds may offer more convenience and flexibility for investors who want to invest a fixed amount of money or set up automatic investments or withdrawals.
• Mutual funds may require a larger minimum investment.
• ETFs may incur bid-ask spreads and premiums or discounts to their NAV, which can affect their trading efficiency and performance.
• Mutual funds may be less tax-efficient than ETFs, as they may distribute more capital gains to their shareholders due to their redemption mechanism.
• ETFs may be more tax-efficient than mutual funds, as they may avoid realizing capital gains through their creation and redemption mechanism.

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

FXAIX vs VOO: Bottom Line

FXAIX and VOO are both excellent choices for investors who want to invest in the S&P 500 index with low costs.

The main difference between them is that FXAIX is a mutual fund, while VOO is an ETF. This means that they have different implications for investors in terms of transaction costs, tax efficiency, tradability, and convenience.

Ultimately, the choice between FXAIX vs VOO depends on the investor’s personal preferences, goals, and circumstances. There is no clear winner or loser between these two funds, as they both offer exposure to the same index with minimal differences.

You can also consider my other comparison articles as part of your research, including VOO vs. SCHD, VOO vs. SPY, JEPI vs. JEPQ, VTI vs. VOO, and JEPI vs. SCHD.

The Financial Tech Wiz ETF Comparison Tool

You can use the ETF comparison tool below to compare over 2,000 ETFs and mutual funds with data I manually collected:

FAQ

What is Fidelity’s equivalent to VOO?

Fidelity’s equivalent to VOO is the Fidelity 500 Index Fund (FXAIX). FXAIX is a mutual fund that tracks the S&P 500 index, just like VOO. It has the same holdings, performance, dividends, and risk profile as VOO. It also has a slightly lower expense ratio of 0.015%, compared to VOO’s 0.03%.

Does FXAIX track the S&P 500?

Yes, FXAIX tracks the S&P 500 index, which is a large-cap index of 500 stocks from leading companies in various industries and sectors. FXAIX aims to replicate the performance of the index by holding the same stocks in the same proportions.

Is FXAIX an index fund or ETF?

FXAIX is an index fund, which is a type of mutual fund that passively follows a specific market index, such as the S&P 500. FXAIX is not an ETF, which is a type of fund that trades like a stock on an exchange throughout the trading day.

What is the Vanguard equivalent to FXAIX?

The Vanguard equivalent to FXAIX is the Vanguard S&P 500 ETF (VOO). VOO is an ETF that tracks the S&P 500 index, just like FXAIX. It has the same holdings, performance, dividends, and risk profile as FXAIX. It also has a very low expense ratio of 0.03%.

What is Fidelity S&P 500 called?

Fidelity S&P 500 is called the Fidelity 500 Index Fund (FXAIX). It is one of the largest and most popular index funds that track the S&P 500 index.

Is Vanguard or Fidelity better for ETFs?

Both Vanguard and Fidelity offer high-quality ETFs with low costs and high returns. The choice between them is simply a choice of which is easiest to buy on your brokerage.

Before you go

If you want to keep educating yourself about personal finance, you must check out these posts as well:

What is the Most Successful Options Strategy

Options Trading for Income: The Complete Guide

Mark Minervini's Trading Strategy: 8 Key Takeaways

The Best Options Trading Books

TradingView Pricing Guide

The Best Laptops and Computers for Trading

The Best Monitors for Trading

How to Get a TradingView Free Trial

The Best TradingView Indicators

The S&P 500 is widely regarded as one of the best benchmarks for the health of the stock market and the economy, and it has historically delivered strong returns over the long term.

But which S&P 500 ETF should you choose? There are many options available, but two of the most popular and widely traded ones are VOO and SPY. Both of these ETFs aim to mimic the returns of the S&P 500 index by holding the same stocks in the same proportions as the index.

However, they’d also have some differences that might affect your decision.

Overview of VOO and SPY

VOO and SPY will essentially have the same performance, as you can see in the chart above. However, which product you choose depends on whether you are an active trader or an investor.

SPY is the best for active traders, while VOO has the lowest expense ratio making it cheaper for investors to hold.

VOO vs. SPY Dividend Yield

One factor that might influence your choice of ETF is the dividend yield. Both VOO and SPY pay quarterly dividends to their shareholders based on the dividends received from the underlying stocks in the S&P 500 index.

ETF	Dividend Yield
VOO	1.56%
SPY	1.49%

As you can see, VOO has a slightly higher dividend yield than SPY, but this is not a significant difference and may change over time.

VOO vs. SPY Expense Ratio

Another factor that might affect your choice of ETF is the expense ratio. The expense ratio reduces the net return of the fund to its investors, so a lower expense ratio means more money in your pocket.

Both VOO and SPY have very low expense ratios compared to other funds, but there is a noticeable difference between them, as shown in the table below.

ETF	Expense Ratio
VOO	0.03%
SPY	0.09%

As you can see, VOO has a much lower expense ratio than SPY, which means it charges less fees than SPY. This gives VOO an edge over SPY in terms of cost efficiency and long-term investors.

For example, if you invested $10,000 in each fund for 10 years and they both had an annual return of 10%, you would end up with $25,937 in VOO and $25,518 in SPY, a difference of $419 due to the expense ratio.

The Biggest Difference Between VOO and SPY

While both VOO and SPY track the same index and have similar returns, there is one major difference between them that might matter to some investors: liquidity.

Liquidity refers to how easily and quickly you can buy or sell a security without affecting its price or incurring significant transaction costs. Liquidity is important for investors who want to trade frequently, take advantage of market opportunities, or hedge their positions with options.

SPY has a much higher liquidity than VOO, as evidenced by its higher trading volume and lower bid-ask spread. The bid-ask spread is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept for a security. A lower bid-ask spread means less friction and more efficiency in the market.

SPY has an average daily trading volume of about 80 million shares, while VOO has an average daily trading volume of about 3.6 million shares. This means that SPY is more popular and more widely traded than VOO, and it has more buyers and sellers available at any given time.

Moreover, SPY had an average bid-ask spread of about $0.01, while VOO had an average bid-ask spread of about $0.04. This means that SPY has a lower trading cost per share than VOO, and it is easier to buy or sell SPY at a fair price without moving the market.

SPY has the most liquid options market in the world, with hundreds of thousands of contracts traded every day across various strike prices and expiration dates. This means that there are more options contracts available for SPY than for VOO. VOO also has options available, but they are much less liquid and have lower volume and wider spreads than SPY’s options.

If you need a broker that allows you to invest in ETFs or trade options efficiently, consider checking out the tastytrade brokerage. tastytrade offers fractional shares for investors and low fees for active traders, making it one of the best brokerages available.

Therefore, if you are an active trader or an options trader, you might prefer SPY over VOO because of its higher liquidity and lower trading costs. However, if you are a passive investor or a long-term investor, you might prefer VOO over SPY because of its lower expense ratio and slightly higher dividend yield.

VOO vs. SPY vs. QQQ

VOO and SPY are not the only ETFs that track the U.S. stock market. There are many other ETFs that track different segments or sectors of the market, such as QQQ.

The main difference between QQQ and VOO/SPY is that QQQ is more concentrated and more volatile than VOO/SPY. QQQ holds only 100 stocks compared to 500 stocks in VOO/SPY, and it has a higher exposure to growth-oriented sectors that tend to have higher risk and higher reward than value-oriented sectors.

As a result, QQQ has outperformed VOO/SPY in terms of returns over the past decade, but it has also experienced larger drawdowns and fluctuations along the way.

Therefore, if you are looking for a higher growth potential and you are comfortable with higher risk and volatility, you might prefer QQQ over VOO/SPY. However, if you are looking for a more diversified and balanced exposure to the U.S. stock market, you might prefer VOO/SPY over QQQ.

VOO vs. SPY vs. VTI

Another ETF that tracks the U.S. stock market is VTI.

The main difference between VTI and VOO/SPY is that VTI is more diversified and more inclusive than VOO/SPY. VTI holds about 3,600 stocks compared to 500 stocks in VOO/SPY, and it covers the entire U.S. stock market, including small-cap and mid-cap stocks that are not part of the S&P 500 index.

As a result, VTI has a lower concentration risk and a lower exposure to any single sector or company than VOO/SPY. Moreover, VTI had a higher exposure to sectors such as industrials, financials, and real estate than VOO/SPY, which had a higher exposure to sectors such as information technology and communication services.

However, VTI and VOO/SPY have very similar returns over the long term, as they both capture the overall performance of the U.S. stock market.

Therefore, if you are looking for more diversified and comprehensive exposure to the U.S. stock market, you might prefer VTI over VOO/SPY. However, if you are looking for a more focused and liquid exposure to the large-cap segment of the market, you might prefer VOO/SPY over VTI.

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

SPY vs. VOO | Bottom Line

VOO and SPY are both excellent ETFs that track the performance of the S&P 500 index, which is one of the best proxies for the U.S. stock market and the economy. They have similar holdings, returns, and dividend yields, but they differ in their expense ratios, liquidity, and options volume.

VOO has a lower expense ratio than SPY, which means it charges less fees and has a slight edge in terms of cost efficiency and long-term returns. However, SPY has a higher liquidity than VOO, which means it has a lower trading cost and a higher options volume, making it more suitable for active traders and options traders.

Ultimately, the best ETF for your portfolio depends on your investment goals, risk tolerance, time horizon, and personal preference. Consider our article on VUG vs. VOO as part of your research as well.

If you want to become more profitable on the stock market, you should join the HaiKhuu Trading Community!

HaiKhuu offers daily morning reports and gives you access to an amazing community of experienced traders.

FAQ

What is the difference between VOO and SPY?

VOO and SPY are both ETFs that track the performance of the S&P 500 index, which comprises the 500 largest publicly traded companies in the United States. They have similar holdings, returns, and dividend yields, but they differ in their expense ratios, liquidity, and options volume.

VOO has a lower expense ratio than SPY, which means it charges less fees and has a slight edge in terms of cost efficiency and long-term returns. However, SPY has higher liquidity than VOO, which means it has a lower trading cost and a higher options volume, making it more suitable for active traders and options traders.

Should I invest in QQQ or VOO?

QQQ has higher growth potential and volatility than VOO, as it has outperformed it in terms of returns over the past decade, but it has also experienced larger fluctuations and drawdowns along the way. QQQ is heavily weighted towards the technology and innovation sectors, while VOO is more diversified and balanced across all sectors.

Therefore, if you are looking for higher growth potential and you are comfortable with higher risk and volatility, you might prefer QQQ over VOO. However, if you are looking for a more diversified and balanced exposure to the U.S. stock market, you might prefer VOO over QQQ.

Is SPY the most popular ETF?

SPY is one of the most popular and widely traded ETFs in the world. It was the first ETF ever launched, and it remains one of the largest and most liquid ones in the market.

SPY is popular among investors of all kinds because it provides a simple and low-cost way to invest in the U.S. stock market by tracking the performance of the S&P 500 index. It also has a very liquid options market, which attracts active traders and options traders who want to hedge or speculate on the movement of the index.

Is the SPY ETF safe?

No investment is completely safe or risk-free, and SPY is no exception. SPY is subject to market risk, which means that its value can fluctuate depending on the performance of the underlying stocks in the S&P 500 index. If the stock market declines, so will SPY.

However, SPY is relatively safer than some other investments because it provides diversification by holding 500 stocks across all sectors of the economy. This reduces its concentration risk and exposure to any single sector or company. Moreover, SPY tracks a well-established and reputable index that has historically delivered strong returns over the long term.

Is SPY an active or passive ETF?

SPY is a passive ETF, which means that it does not try to beat or outperform its benchmark index (the S&P 500), but rather tries to match or replicate its performance as closely as possible. SPY does this by holding the same stocks in the same proportions as the index.

Before you go

If you want to keep educating yourself about personal finance, you must check out these posts as well:

What is the Most Successful Options Strategy

Options Trading for Income: The Complete Guide

Mark Minervini’s Trading Strategy: 8 Key Takeaways

The Best Options Trading Books

TradingView Pricing Guide

The Best Laptops and Computers for Trading

The Best Monitors for Trading

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In the world of ETFs, QQQ and VTI have emerged as popular choices for investors seeking exposure to different segments of the stock market.

In this article, we’ll dive into the details of these ETFs, compare their performance, discuss the factors to consider when choosing between them, and provide insights into personalizing your investment strategy.

Overview of QQQ and VTI

QQQ – Invesco QQQ Trust

• Investment Goals: QQQ aims to track a modified-weighted index of 100 NASDAQ-listed stocks, with a particular focus on non-financial-related stocks, especially in the technology sector.
  • Number of Companies Held: 100
  • Expense Ratio: 0.20%
• Key Points: QQQ offers an aggressive growth approach, primarily targeting the tech sector. However, it comes with higher volatility compared to VTI.

VTI – Vanguard Total U.S. Stock Market Fund

• Investment Goals: VTI seeks to track the overall performance of the U.S. stock market, including mid-sized and small-sized companies.
  • Number of Companies Held: 4,069
  • Expense Ratio: 0.03%
• Key Points: VTI provides broad exposure to the U.S. stock market, appealing to investors looking for diversification across various sectors.

Performance Comparison

Looking at the long-term performance of QQQ and VTI, we find some interesting insights. Since June 2001, QQQ has delivered an impressive total return of 342%, while VTI has generated a solid total return of 176%, including dividends. For a visual representation, check out the TradingView chart showcasing the performance of these ETFs over time.

To see the performance of any ETF on the same chart, you can use the TradingView widget below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

Factors to Consider When Choosing Between QQQ and VTI

Making the right choice between QQQ and VTI requires careful consideration of several factors:

1. Risk and Volatility Tolerance:
   • QQQ: With its tech-focused approach, QQQ tends to be more volatile, suiting investors with a higher risk tolerance.
   • VTI: VTI, providing broad exposure to the overall stock market, offers a comparatively lower level of volatility.
2. Investment Approach and Goals:
   • QQQ: If you seek aggressive growth and have a preference for tech stocks, QQQ might align well with your investment approach.
   • VTI: VTI suits investors looking for diversified exposure across different sectors and market segments.
3. Preference for Specific Sectors or Market Segments:
   • QQQ: With its concentration in the tech sector, QQQ offers an attractive option for those seeking exposure to the tech industry’s growth potential.
   • VTI: VTI covers a wide range of sectors, appealing to investors who prefer a more balanced and diversified portfolio.
4. Diversification and Conservative Investing:
   • VTI: If you prioritize diversification and a conservative investing approach, VTI’s broad exposure to the U.S. stock market, including mid-sized and small-sized companies, could be suitable for your portfolio.

Personalizing the Investment Strategy

Crafting an investment strategy that aligns with your goals is essential. Consider the following suggestions:

• Blend Both ETFs: Some investors opt for a mixture of QQQ and VTI, striking a balance between aggressive growth and broad market exposure.
• Understand Your Risk Appetite: Evaluate your risk tolerance and investment goals to determine which ETF suits your needs.
• Seek Professional Advice: Consulting with a financial advisor can provide personalized guidance based on your unique circumstances.

Related ETF Comparisons

To further expand your understanding of ETFs and enhance your investment knowledge, consider exploring the following articles on your website:

• VOO vs. SCHD: This article provides an in-depth comparison between VOO and SCHD, helping you make informed decisions regarding large-cap stocks and dividend-focused investments.
• JEPI vs. SCHD: Discover the differences and similarities between JEPI and SCHD, two ETFs that offer exposure to high-dividend-yielding equities.
• JEPI vs. JEPQ: Dive into the comparison between JEPI and JEPQ, exploring their distinct approaches to achieving investment goals and their potential benefits for your portfolio.
• QYLD vs. JEPI: Uncover the nuances between QYLD and JEPI, two ETFs focusing on generating income through covered call strategies and high-dividend stocks.
• VUG vs. QQQ: Discover which growth ETF is right for you.

Feel free to click on the links to access these informative articles and gain valuable insights into various ETF comparisons.

The Financial Tech Wiz ETF Comparison Tool

You can use the ETF comparison tool below to compare over 2,000 ETFs and mutual funds with data I manually collected:

QQQ vs. VTI | Bottom Line

In the battle of QQQ vs. VTI, each ETF has its own strengths and considerations. QQQ offers aggressive growth potential, especially within the tech sector, but comes with higher volatility. VTI, on the other hand, provides broad exposure to the U.S. stock market, accommodating a more diversified investment approach.

When making your investment decisions, carefully evaluate your risk tolerance, investment goals, and preference for specific sectors or market segments. Consider personalizing your strategy by blending ETFs or seeking professional advice to optimize your portfolio.

Remember, the key to successful investing lies in understanding your objectives and making informed choices. Use tools like TradingView to analyze performance trends and investigate relevant articles that compare different ETFs.

Before you go

If you want to keep educating yourself about personal finance, you must check out these posts as well:

What is the Most Successful Options Strategy

Options Trading for Income: The Complete Guide

Mark Minervini's Trading Strategy: 8 Key Takeaways

The Best Options Trading Books

TradingView Pricing Guide

The Best Laptops and Computers for Trading

The Best Monitors for Trading

How to Get a TradingView Free Trial

The Best TradingView Indicators

Trendspider vs. TradingView

TrendSpider Free Trial

TrendSpider Discount Code

This article contains affiliate links I may be compensated for if you click them.

The Potential of JEPI – JPMorgan Equity Premium Income ETF

If you are looking for an investment option that can provide you with high yield and low risk, you might be interested in JEPI (JPMorgan Equity Premium Income ETF). This ETF is designed to generate income and reduce volatility by using a covered call strategy on a basket of low-volatility stocks from the S&P 500.

In this article, we will examine the performance, strategy, risks, and benefits of JEPI, as well as some alternatives and comparisons. By the end of this article, you will have a better understanding of whether JEPI is a good investment choice for your portfolio.

How JEPI Has Performed Since Its Inception

JEPI was launched in May 2020 and has quickly attracted a lot of investor interest. As of April 2023, it has over $3.5 billion in assets under management and an expense ratio of 0.35%. Since its inception, JEPI has delivered impressive results compared to its benchmark index, the S&P 500.

Using TradingView to compare total returns allows us to easily see that JEPI has less volatility than the S&P 500 and similar returns since its inception. If you sign up using my link, you will get a free trial and a discount on your subscription.

It has also generated consistent income through dividends and option premiums, resulting in a monthly dividend yield of around 11.9% over the trailing twelve months. This means that if you invested $10,000 in JEPI at its inception, you would have received about $1,190 in dividends over the past year.

How JEPI Selects Stocks and Sells Options

JEPI’s strategy is based on two main components: stock selection and option writing. For stock selection, JEPI chooses low-volatility stocks from the S&P 500 based on ESG criteria and valuation metrics. Environmental, social, and governance (ESG) are the criteria that measure how a company operates in a responsible and sustainable manner.

Valuation metrics include factors such as dividend yield, earnings growth, and price-to-earnings ratio. JEPI’s portfolio consists of 95 holdings as of April 2023, with the top sectors being information technology, health care, consumer discretionary, and financials.

For option writing, JEPI sells call options on its portfolio stocks through equity-linked notes (ELNs). ELNs are debt instruments that are linked to the performance of an underlying asset, such as a stock or an index.

By selling call options on its ELNs, JEPI collects option premiums from the buyers, who have the right to buy the underlying asset at a predetermined price (the strike price) before a certain date (the expiration date). If the underlying asset’s price stays below the strike price, JEPI keeps the option premium and the ELN. If the underlying asset’s price rises above the strike price, JEPI delivers the ELN to the option buyer and receives the strike price in return.

How JEPI Aims to Offer Market Participation With Lower Volatility and Higher Yield

JEPI’s strategy is designed to offer market participation with lower volatility and higher yield. By selecting low-volatility stocks, JEPI reduces its exposure to large price fluctuations and market downturns. By selling call options, JEPI generates additional income and creates a buffer against potential losses.

JEPI’s covered call strategy’s goal is to reduce volatility and increase yield compared to the S&P 500.

What Are the Potential Risks and Challenges of Investing in JEPI

While JEPI may offer attractive income and lower risk, it is not without its challenges and drawbacks. Some of the potential risks and challenges of investing in JEPI include:

• Market conditions: JEPI’s performance may depend on the market conditions and the behavior of the underlying stocks. If the market is too bullish, JEPI may miss out on some of the upside potential due to its option writing. If the market is too bearish, JEPI may suffer from capital losses due to its stock exposure.
• Interest rates: JEPI’s income generation may be affected by changes in interest rates. If interest rates rise, the value of JEPI’s ELNs may decline, reducing its income potential. If interest rates fall, the demand for JEPI’s ELNs may increase, raising its income potential.
• Option pricing: JEPI’s income generation may also be affected by changes in option pricing. Option pricing depends on various factors, such as volatility, time to expiration, and dividend payments. If option prices decline, JEPI may receive lower option premiums, reducing its income potential. If option prices increase, JEPI may face higher opportunity costs, limiting its upside potential.
• Tax implications: JEPI’s dividends may be taxed differently depending on the source of income. JEPI’s dividends are taxed as ordinary income, which means as much as 50% of the yield could go to the IRS if owned in a taxable account where the investor is in the highest tax bracket. Some of JEPI’s dividends are taxed as qualified dividends, which are subject to lower tax rates.
• Fees and expenses: JEPI has a relatively high expense ratio of 0.35%, which may erode its returns over time. JEPI also incurs transaction costs and management fees associated with its option writing and ELN activities, which are not reflected in its expense ratio.
• Growth potential: While JEPI may offer attractive income, its focus on generating yield might result in lower share growth over the long term compared to other investment options. JEPI may also have lower dividend growth potential due to its option writing, which limits its capital appreciation.

How Does JEPI Compare to Other High-Yield ETFs and Investment Options

JEPI is not the only high-yield ETF that uses a covered call strategy. There are other ETFs that employ similar or different strategies to generate income and reduce volatility, such as JEPQ, QYLD, SCHD, etc. Each of these ETFs has its own pros and cons for different investor goals and preferences. For example:

• JEPQ is another covered call ETF from JPMorgan that tracks the Russell 1000 Index and sells call options on it. It has a lower fee of 0.29% and a higher dividend yield of 13.4%. However, it is less diversified with 50 holdings and less popular with $300 million in assets. Consider my article about JEPI vs. JEPQ for more information.
• QYLD is a covered call ETF that tracks the Nasdaq 100 Index and sells call options on it. It has a lower fee of 0.60% and a higher dividend yield of 13.2%. However, it is more volatile and more exposed to the technology sector. Consider the article QYLD vs. JEPI for more information.
• SCHD is a dividend ETF that tracks the Dow Jones U.S. Dividend 100 Index and selects high-quality dividend stocks based on various criteria. It has a lower fee of 0.06% and a lower dividend yield of 3.4%. However, it is more diversified with 102 holdings and more popular with $24 billion in assets. Check out the article JEPI vs. SCHD for more information.

There are also other investment options for income-focused investors, such as dividend stocks, REITs, bonds, etc. Each of these options has its own advantages and disadvantages, such as growth potential, tax efficiency, diversification, etc. For example:

• Dividend stocks are individual stocks that pay regular dividends to shareholders. They can offer high yield, dividend growth, and capital appreciation. However, they are also subject to market risk, company risk, and dividend cuts.
• REITs are companies that own and operate real estate properties and pay most of their income as dividends to shareholders. They can offer high yield, diversification, and inflation protection. However, they are also subject to interest rate risk, sector risk, and tax implications.
• Bonds are debt securities that pay fixed interest payments to investors. They can offer low risk, stable income, and capital preservation. However, they are also subject to interest rate risk, credit risk, and inflation risk.

Is JEPI a Good Investment?

JEPI may be a good investment choice for income seekers and conservative investors who are looking for monthly dividends and lower risk exposure. JEPI will perform well in bear markets but may lack in bull markets due to its capped upside potential. Investors must also note that the dividends are not qualified, meaning you pay higher taxes than dividend ETFs like SCHD.

However, JEPI also has some potential risks and challenges, such as market conditions, interest rates, option pricing, tax implications, fees and expenses, and growth potential. JEPI is not the only high-yield ETF that uses a covered call strategy. There are other ETFs that employ similar or different strategies to generate income and reduce volatility, such as JEPQ, QYLD, SCHD, etc.

There are also other investment options for income-focused investors, such as dividend stocks, REITs, bonds, etc.

If you are interested in learning more about JEPI and how it compares to other investment options, you might want to check out these articles:

• How does JEPI compare to its sister fund JEPQ?
• Is JEPI a better choice than SCHD for dividend investors?
• Which ETF is more suitable for income seekers: QYLD or JEPI?

Trading in the financial markets is as much about strategy as it is about psychology. One psychological trap that traders often fall into is revenge trading.

What is Revenge Trading?

Revenge trading occurs when a trader, driven by the need to recover from a significant loss, impulsively enters a new trade without proper analysis or strategy. This irrational decision-making can be triggered by various emotions, such as anger, fear, shame, and greed​.

Though it might seem like a behavior only novice traders would fall into, revenge trading is not limited to beginners. Even seasoned traders with years of experience can fall prey to this perilous practice​.

The Downward Spiral: The True Costs of Revenge Trading

Engaging in revenge trading can lead to larger and more frequent losses. Traders who resort to this practice often double or triple their trading position, hoping that the next trade will be a winner.

Unfortunately, without proper analysis, these trades often result in even greater losses​. Furthermore, a trader’s reputation can be tarnished, leading to a fear of ‘losing face’ amongst peers, particularly if they have built a reputation as a successful trader​.

The Emotional Drivers Behind Revenge Trading

The primary emotional drivers of revenge trading are anger and greed. After a substantial loss, traders may be angry at the market and succumb to greed, hoping for a quick recovery. This leads them to enter a new trade impulsively, often resulting in a larger loss​.

Fear and shame can also propel a trader into revenge trading. The fear of admitting and accepting a loss, coupled with the shame of others knowing about their failure, can prompt traders to make hasty and uncalculated decisions, pushing them further into the abyss of loss.

Strategies to Combat Revenge Trading

To mitigate the impact of revenge trading, it is essential to adopt several strategies:

1. Taking a Temporary Break: After a significant loss, stepping back from trading is crucial, even if it’s just for a short while. This break can help clear your head and enable you to approach the situation more objectively​.
2. Conducting a Self-Assessment: During this break, perform a self-assessment to identify the cause of the loss and the ensuing revenge trade. Understanding your emotional state and the decisions it led to is a significant step toward mitigating revenge trading​.
3. Assessing Market Conditions: Understanding the state of the market can prevent hasty decisions and ensure your trades align with the market dynamics.
4. Reviewing Your Trading Strategy: Finally, evaluate your trading strategy to ensure it aligns with the current market conditions. Review your entry and exit strategies, make necessary adjustments, and ensure you stick to them.

Preventing revenge trading requires a combination of self-awareness and the right trading tools. After a significant loss, taking a break from trading can be beneficial.

This gives you time to calm down and reassess your strategy. Self-assessment is critical for understanding what led to the loss and how to prevent future occurrences​.

To aid in making objective decisions, you can use the Best Charting Software for Stocks. These tools can assist in evaluating market conditions and trends, helping you to avoid impulsive trading decisions.

The Role of Intraday Trading Time Frames

One way to avoid impulsive decisions like revenge trading is to choose the correct time frame for your trades. Picking the right time frame can help you to analyze the market more effectively and make well-informed decisions. For more insights on this topic, check out our article on the Best Time Frame for Intraday Trading.

How to Adjust Your Trading Strategy

Once you have taken the necessary break and conducted a self-assessment, it’s time to revisit your trading strategy. You should assess whether your strategy is suitable for current market conditions and consider making adjustments where necessary​.

Consider reviewing your entry and exit strategies. If you’re searching for ways to improve your trading strategy, take a look at our article on the Best TradingView Indicators. These indicators can help you make better-informed decisions and avoid the pitfalls of revenge trading.

Learning to Rise Above Revenge Trading

Revenge trading is a significant pitfall for traders, but it can be overcome with self-awareness, the right tools, and a sound strategy. By maintaining control over your emotions and acting strategically rather than reactively, you can navigate the trading landscape more effectively.

FAQs

What is revenge trading? Revenge trading is a type of emotional response that occurs when traders try to make up for their losses quickly after experiencing a losing trade or a series of losing trades. This can lead to even larger losses and may result in traders losing all of the money in their trading account.

What causes revenge trading? There are eight underlying mindsets that can trigger an emotional reaction leading to revenge trading. These include anger, greed, poverty mindset, fear, shame, lack of awareness, overconfidence, and not knowing the probabilities of a trading strategy.

How can I stop revenge trading? There are several ways to stop revenge trading. These include taking a break or trading smaller until you figure things out, developing more awareness while trading, reviewing your strategy, execution, and market conditions, implementing the 2-strikes rule, increasing your heart coherence, identifying your cue and reward, implementing behavior conditioning and using a positive market metaphor.

VOO vs. SCHD Overview

VOO and SCHD are popular exchange-traded funds (ETFs) that provide exposure to the U.S. stock market. This article compares their performance and discusses the difference between these ETFs.

VOO: Vanguard S&P 500 ETF

VOO is a passively managed ETF designed to track the performance of the S&P 500 Index, which represents the 500 largest publicly traded companies in the U.S. The fund was launched in September 2010 and has gained popularity due to its low expense ratio of 0.03%​.

SCHD: Schwab U.S. Dividend Equity ETF

SCHD is a passively managed ETF that tracks the Dow Jones U.S. Dividend 100 Index. It focuses on dividend-paying stocks and offers a higher dividend yield compared to VOO. SCHD was launched in October 2011 and has attracted investors seeking dividend optimization​. The expense ratio of SCHD is 0.06%, which is slightly higher than VOO.

Performance Comparison

Total Return Comparison from February 2012

• VOO has achieved a total return of 268% since February 2012.
• SCHD has delivered a total return of 267% during the same period​

Over long periods these ETFs have provided essentially the same return. Therefore, your choice should depend on your overall investment goals and risk tolerance.

Those who want a higher dividend should opt for SCHD, while those looking for overall market exposure should opt for VOO.

YTD Performance Comparison

• SCHD is down 5% year-to-date (YTD)
• VOO is up 6.5% YTD​

The S&P 500 (VOO) is outperforming in 2023 since it capitalizes on share price growth more than SCHD. The market has increased in 2023, but in years when the market is not so bullish, SCHD will likely outperform.

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

Characteristics and Differences

Diversification and Holdings

• VOO provides broad exposure to the overall U.S. stock market through the S&P 500 Index.
• SCHD focuses on dividend-paying stocks, contributing to its performance during the selected timeframes​.

Focus on Dividends and Share Growth

• SCHD’s emphasis on dividend-paying stocks has attracted investors seeking dividend optimization.
• VOO’s broader exposure to the overall U.S. stock market makes it a suitable choice for those seeking share growth from the broader market​

VOO vs. SCHD | Bottom Line

When comparing the performance of VOO and SCHD, we can observe that from February 2012, VOO has achieved a slightly higher total return of 268% compared to SCHD’s 267%. However, YTD performance shows SCHD with a decline of 5%, while VOO has gained 6.5%​.

Considering the different characteristics and objectives of VOO and SCHD, investors should carefully evaluate their investment goals and risk tolerance. SCHD’s focus on dividend-paying stocks makes it an attractive option for those prioritizing dividends and share growth. On the other hand, VOO provides broader exposure to the U.S. stock market, appealing to investors seeking overall market share growth.

For a visual representation of the performance and further analysis, you can refer to the TradingView chart comparing VOO and SCHD performance.

The Financial Tech Wiz ETF Comparison Tool

You can use the ETF comparison tool below to compare over 2,000 ETFs and mutual funds with data I manually collected:

Before you go

If you want to keep educating yourself about personal finance, you must check out these posts as well:

What is the Most Successful Options Strategy

Options Trading for Income: The Complete Guide

Mark Minervini's Trading Strategy: 8 Key Takeaways

The Best Options Trading Books

TradingView Pricing Guide

The Best Laptops and Computers for Trading

The Best Monitors for Trading

How to Get a TradingView Free Trial

The Best TradingView Indicators

VOO vs. SCHD

This article contains affiliate links I may be compensated for if you click them.

When it comes to Exchange Traded Funds (ETFs), investors often find themselves comparing different options to determine the best fit for their portfolio. In this article, we’ll compare VOO vs. QQQ to help you make an informed decision.

Key Metrics Comparison

Before we delve into the specifics of VOO and QQQ, let’s first look at the key metrics that differentiate these ETFs:

• Expense Ratio: VOO boasts an expense ratio of 0.03%, while QQQ has an expense ratio of 0.20%.
• Dividend Yield: VOO offers a dividend yield of 1.6%, whereas QQQ provides a dividend yield of 0.59%.

Now that we have an overview of the metrics let’s explore each ETF in more detail.

VOO: S&P 500 ETF

VOO seeks to replicate the returns of the S&P 500 Index, which comprises 500 of the most valuable public companies in the USA. It is widely regarded as a gauge of the overall U.S. economy. Some key points about VOO include:

• Broad Exposure: By investing in VOO, you gain exposure to a diverse range of valuable U.S. companies across various sectors.
• Low Expense Ratio: VOO boasts a low expense ratio, which makes it an attractive option for investors looking for cost-effective exposure.
• Stability in Crisis: VOO has demonstrated its resilience during times of economic downturn, making it a reliable choice for conservative investors.

QQQ: Nasdaq 100 ETF

QQQ, on the other hand, tracks the Nasdaq 100 Index, which is heavily weighted toward the technology sector. Here are some important factors to consider about QQQ:

• Concentrated Tech Exposure: QQQ provides investors with concentrated exposure to innovative and technology-focused companies, including giants like Apple, Amazon, Microsoft, Facebook, and Google.
• Potential for Aggressive Growth: Due to its focus on the tech sector, QQQ has the potential for aggressive growth and has historically outperformed the broader market.
• Higher Expense Ratio: QQQ’s expense ratio is slightly higher compared to VOO, which is an aspect to consider when evaluating the cost of investing in this ETF.

Total Return Comparison

To better understand the performance of VOO and QQQ, let’s take a look at the total return comparison since June 2012. As depicted in the TradingView chart below, VOO has delivered a total return of 282%, while QQQ has outperformed with a total return of 467%.

Performance and Cost Analysis

The total return is a crucial performance metric to consider when evaluating ETFs. However, it’s important to keep in mind that investment decisions should not be solely based on past performance. Other factors, such as expense ratio and dividend yield, play a significant role in the overall performance and cost of the ETFs.

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

Explore Other ETF Comparisons

To further expand your knowledge on ETF comparisons, here are some related articles you might find useful:

• QQQ vs. VTI: A comparison of QQQ and VTI ETFs.
• VOO vs. SCHD: Analyzing the similarities and differences between VOO and SCHD ETFs.
• JEPI vs. SCHD: A comprehensive comparison of JEPI and SCHD ETFs.
• JEPI vs. JEPQ: Exploring the distinctions between JEPI and JEPQ ETFs.
• QYLD vs. JEPI: A detailed analysis of QYLD and JEPI ETFs.
• VOO vs. SPY: See which S&P 500 fund is best for you.

Feel free to explore these articles to gain deeper insights into different ETF comparisons.

The Financial Tech Wiz ETF Comparison Tool

You can use the ETF comparison tool below to compare over 2,000 ETFs and mutual funds with data I manually collected:

Bottom Line | VOO vs. QQQ

VOO and QQQ are two popular ETFs with distinct characteristics. VOO provides exposure to the S&P 500, while QQQ concentrates on the tech sector. When considering the total return comparison, QQQ has outperformed VOO since June 2012.

However, it's essential to evaluate other factors like expense ratio and dividend yield in addition to the total return. Consider your investment goals, risk tolerance, and personal preferences when choosing between VOO and QQQ.

Before you go

If you want to keep educating yourself about personal finance, you must check out these posts as well:

What is the Most Successful Options Strategy

Options Trading for Income: The Complete Guide

Mark Minervini's Trading Strategy: 8 Key Takeaways

The Best Options Trading Books

TradingView Pricing Guide

The Best Laptops and Computers for Trading

The Best Monitors for Trading

How to Get a TradingView Free Trial

The Best TradingView Indicators

This article contains affiliate links I may be compensated for if you click them.

A Tale of Two Dividend ETFs

Dividend exchange-traded funds (ETFs) have long been favored by investors who seek regular income along with the potential for capital appreciation. In this analysis, we take a closer look at two popular dividend ETFs: the JPMorgan Equity Premium Income ETF (JEPI) and the Schwab US Dividend ETF (SCHD).

We’ll dive into their unique features, compare their performances, and highlight key considerations of JEPI vs. SCHD.

JEPI: Income Generation with Options Strategy

JEPI is known for its high-yield distribution and monthly dividend payments, making it attractive for income-focused investors. What sets JEPI apart is its unique strategy:

• High-Yield Distribution: JEPI pays an impressive yield of 11.5%.
• Options Strategy: The fund sells out-of-the-money call options to boost yield.
• Equity Linked Notes (ELNs): JEPI uses ELNs, a blend of fixed income and equity returns.
• Actively Managed: With a 0.35% expense ratio, JEPI is actively managed by an experienced team.

Despite its attractive income, investors should be aware of the limited upside potential due to the fund’s options strategy.

SCHD: Steady Dividend Growth and Capital Appreciation

SCHD takes a more traditional approach, focusing on US dividend stocks that have a track record of stable growth.

• Dow Jones Industrial US Dividend 100 Index: The fund aims to track this index.
• Low-Cost Fund: SCHD boasts a low expense ratio of 0.06%.
• Defensive Sectors: SCHD has larger exposure to sectors that are more defensive in nature.

Investors in SCHD benefit from both dividend income and potential capital gains over time.

Performance Insights: JEPI vs. SCHD Total Returns

JEPI and SCHD have shown different performance trends since May 2020:

• JEPI Total Return: 44.23%
• SCHD Total Return: 60.05%

While JEPI’s high yield is appealing, SCHD’s stronger capital appreciation has led to higher total returns.

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

Making the Right Choice: Income vs. Growth

The choice between JEPI and SCHD ultimately depends on individual investor preferences:

• Income Seekers: JEPI’s high yield and monthly dividends make it suitable for income-oriented investors.
• Growth Seekers: SCHD’s emphasis on dividend growth and capital appreciation aligns with long-term growth objectives.

It’s important to weigh the trade-offs between high yield and capital growth when making your selection.

Final Thoughts: Balancing Yield and Potential

JEPI and SCHD each offer unique benefits to dividend investors. JEPI stands out for its high income generation, while SCHD offers a more traditional approach with an emphasis on dividend growth and capital gains.

As with any investment decision, consider your risk tolerance, investment horizon, and income goals before choosing the ETF that best aligns with your financial objectives.

For investors interested in exploring additional investment options and comparisons in the world of high-yield ETFs, there are two noteworthy articles on Financial Tech Wiz that provide valuable insights.

In the article titled “JEPI vs. JEPQ: Comparing Two High-Yield ETFs,” we conduct an in-depth analysis of JPMorgan Equity Premium Income ETF (JEPI) and JPMorgan Equity Premium Quality ETF (JEPQ) and examine their similarities and differences.

Additionally, for a closer look at how JEPI stacks up against another popular covered call ETF, readers can explore the article “QYLD vs. JEPI: Evaluating Covered Call ETF Strategies,” which offers a comprehensive comparison between JEPI and the Global X NASDAQ-100 Covered Call ETF (QYLD).

The Financial Tech Wiz ETF Comparison Tool

You can use the ETF comparison tool below to compare over 2,000 ETFs and mutual funds with data I manually collected:

Before you go

If you want to keep educating yourself about personal finance, you must check out these posts as well:

What is the Most Successful Options Strategy

Options Trading for Income: The Complete Guide

Mark Minervini's Trading Strategy: 8 Key Takeaways

The Best Options Trading Books

TradingView Pricing Guide

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