Index Funds

VOO vs. QQQ

S&P 500 vs. Nasdaq-100. Is the massive outperformance of big tech worth the extreme volatility?

VOO

Vanguard S&P 500

Holdings505

Tech Weight~29%

Financials Weight~13%

Volatility (Risk)Moderate

QQQ

Invesco Nasdaq-100

Holdings100

Tech Weight~58%

Financials Weight0% (Excluded)

Volatility (Risk)High

Historical Growth Projection Simulator

*Based on historical 10-year annualized returns (VOO ~10.2%, QQQ ~14.5%). Past performance does not guarantee future results.

Investment Strategy

Initial Investment$10,000

Monthly Contribution$500

Time Horizon20 Years

Projected Value After 20 Years

VOO (S&P 500)$465,928

Assumes historical ~10.2% return

QQQ (Nasdaq-100)$876,306

Assumes historical ~14.5% return

The Risk Factor (Volatility)

QQQ has historically generated massive returns, but it experiences much deeper "drawdowns" (crashes). If a market crash happened at the end of year 20:

VOO (Historical -33%)

-$153,756

QQQ (Historical -52%)

-$455,679