Updated Reviewed quarterly
QQQ vs VGT: Tech ETF Comparison
QQQ
TER 0.20% · Yield 0.7% · Quarterly
VGT
TER 0.10% · Yield 0.6% · Quarterly
Two popular ways to invest in US tech. Compare their holdings, fees, and structure.
Quick Answer for Kiwi Investors
It depends on what you want: QQQ includes Amazon, Tesla, and Meta (broader innovation exposure). VGT is pure tech with lower fees (0.10% vs 0.20%). For most NZ investors, QQQ offers better diversification across growth sectors.
The Key Difference
QQQ - Nasdaq-100
Tracks the 100 largest non-financial Nasdaq companies. Tech-heavy but includes:
- ✓ Amazon (consumer discretionary)
- ✓ Tesla (automotive)
- ✓ Meta, Alphabet (communication)
- ✓ Costco, PepsiCo (consumer staples)
VGT - Pure Tech Sector
Strictly information technology sector only. Excludes companies classified in other sectors:
- ✗ No Amazon
- ✗ No Tesla
- ✗ No Meta or Alphabet
- ✓ Apple, Microsoft, NVIDIA, Broadcom
Head-to-Head Comparison
| Feature | QQQ | VGT | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.10% | VGT |
| Holdings | 100 | 300+ | VGT |
| Sector Diversity | Multiple sectors | Tech only | QQQ |
| Includes Amazon | Yes | No | QQQ |
| Includes Tesla | Yes | No | QQQ |
| AUM | $280B+ | $75B+ | QQQ |
| Share Price | ~$520 | ~$580 | Similar |
For New Zealand Investors
Platform Availability
Both QQQ and VGT are available on Hatch, Stake, Sharesies, and Interactive Brokers. No difference in accessibility for Kiwis.
Tax Treatment
Both are US-domiciled ETFs. Same FIF rules apply. Same 15% US withholding tax on dividends (with W-8BEN).
Fractional Shares
Both have high share prices ($500+). Use Sharesies or Stake if you want to invest smaller amounts via fractional shares.
Key Differences
QQQ Characteristics
- Includes Amazon, Tesla, Meta alongside tech
- Broader innovation/growth sector exposure
- Higher expense ratio (0.20%), higher liquidity
VGT Characteristics
- Pure information technology sector only
- Lower expense ratio (0.10%)
- 300+ holdings, more concentrated sector bet
These are general product characteristics, not recommendations. Consult a licensed financial adviser to assess suitability for your circumstances.
Learn More About These ETFs
Compare platforms available to NZ investors
