VOO vs. QQQ: Which Is the Better Buy for Long-Term Investors?
The Vanguard S&P 500 ETF (VOO) and the Invesco QQQ ETF (QQQ) can both serve as long-term holdings. But one is clearly better suited than the other.
Overview
The Invesco QQQ ETF (NASDAQ: QQQ) is once again making the case for why it's one of the best-performing ETFs of the past two decades. A 19.9% return in the first half of the year, which more than doubled the Vanguard S&P 500 ETF's (NYSEMKT: VOO) 9.5% return, pushed its total return since inception to more than 1,580%.
By that measure, it may be easy to say that the Invesco QQQ ETF is easily a better investment than Vanguard's index. But investment fit should never come down to historical returns. Sure, it's nice when an ETF performs well, but it's not as important as making sure it's a fit and is aligned with your objectives, risk tolerance, and time horizon.
Details
It's easy to understand exactly why the Invesco QQQ ETF has been the better performer for years: its tech-sector concentration.
Source
Originally published at www.fool.com.