Should You Buy QQQ or VUG Right Now? Here's What History Suggests.
It all comes down to portfolio construction -- one is logical, one isn't.
Overview
The Invesco QQQ ETF (NASDAQ: QQQ) is one of the market's best-performing exchange-traded funds (ETFs) of the past 15 years, earning an annual average of 20% over that time frame. That would seemingly make it an easily defensible choice to add to your portfolio.
The Vanguard Growth ETF (NYSEMKT: VUG), however, has put up a pretty strong track record of its own. Its 15-year average annual return has been a modestly lower 17.5%, but I'd argue that it might be better positioned for future growth.
Details
For me, the choice between two seemingly similar ETFs comes down to the investment strategy. How are the portfolios being built, and is that construction smart? Can these portfolios deliver on their objective, and will they do it in a way that's sensible and logical?
Source
Originally published at www.fool.com.