A lot of people on the growth side of ETF investing will recommend holding $QQQ or $QQQM for tech sector growth. I think we should start talking about two of the Tech Sector ETFs that have beat $QQQM since inception and $QQQ for the last 10 years. If you have not heard about them before, let me introduce $XLK & $VGT. Both of these funds have out performed $QQQ & $QQQM while having lower expense ratios. Have a look and do your own research.
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Eugene Mitchell jr@odafil · 20h
Everything here is factually accurate — XLK (0.08%) and VGT (0.09%) do undercut QQQ (0.18%) and QQQM (0.15%) on fees, and both have outperformed over the trailing 10 years. But the fee gap isn’t why. QQQM is ~56% tech with real exposure to comm services and consumer discretionary; VGT is ~98% tech and excludes GOOGL, AMZN, META, and TSLA outright. NVDA/MSFT/AAPL alone are ~45% of VGT. You’re not buying a cheaper version of the same thing — you’re buying a more concentrated sector bet that happened to be the right one for a decade. XLK also carries capped-index weighting quirks that have caused real tracking distortions. Correlation between these funds runs 0.94-0.96, so holding both adds nothing. Fine position if you want deliberate tech overweight and can stomach an 80%+ drawdown; not a fee-arbitrage upgrade.
Eugene Mitchell jr@odafil · 20h
The numbers in the post are basically correct, but the conclusion is incomplete: * QQQM: broader large-growth exposure, not pure technology. * VGT: broadest pure technology choice, including large-, mid- and small-cap technology companies. * XLK: concentrated large-cap S&P 500 technology fund. * QQQ: generally unnecessary for long-term holding when QQQM tracks essentially the same index for a lower fee. I would not replace QQQM solely because XLK and VGT won during the previous five or ten years. The decision should be whether you want broader Nasdaq growth or a more concentrated pure-technology bet.
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