TSLA - VOO And QQQ: Which ETF Is The Better Buy?
- VOO represents the large-cap market contained in the S&P 500 Index; QQQ is the NASDAQ 100 index heavy in tech investments.
- QQQ has outperformed over the past decade as the current tech giants rose to dominate, but VOO did better in the decade following the 2000-2003 crash.
- Both indexes are capitalization weighted; 8 of 10 top stocks are the same tech companies, but much more heavily weighted in the smaller QQQ index.
- QQQ stocks have higher growth but also higher valuations; the market is currently pivoting toward value, which would favor the VOO ETF.
- Versions of the S&P 500 Index are frequently in institutional accounts and retirement options; VOO is the default choice but QQQ may outperform long term albeit with higher volatility.
For further details see:
VOO And QQQ: Which ETF Is The Better Buy?