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News  ›  The Motley Fool

The Vanguard 500 Index Fund ETF (VOO) Offers Broader Diversification Than the Invesco QQQ Trust, Series 1 ETF (QQQ)

The Motley Fool Logo The Motley Fool By Cory Renauer
The Vanguard 500 Index Fund ETF (VOO) Offers Broader Diversification Than the Invesco QQQ Trust, Series 1 ETF (QQQ)

The Vanguard 500 Index Fund ETF (VOO) offers broader market diversification with lower expenses compared to the Invesco QQQ Trust (QQQ), which is more heavily concentrated in technology stocks. While QQQ has outperformed recently due to tech sector gains, VOO provides a more balanced investment approach.

Insights
ECL   positive

Continuing long-term investment in water technology and innovation sector


VOO   positive

Lower expense ratio (0.03%), broader diversification across 505 companies, higher dividend yield (1.1%), and stable performance with 80.6% three-year return