What is an expense ratio and how do QQQI and VOO compare on fees?

An expense ratio is the annual fee charged by a fund. According to the provided data, QQQI has an expense ratio of 0.68%, while VOO has an expense ratio of 0.03%. The difference is 0.65 percentage points. Lower fees generally mean investors retain more of their gross returns over time, although higher-fee funds may offer specific features like derivative income strategies. Investors should consider how much cost efficiency matters for their portfolio.

What does 'derivative income' mean in the context of QQQI?

QQQI is categorised as a Derivative Income ETF. This structure often uses financial derivatives to generate regular distributions, aiming for a higher yield than traditional equity funds. QQQI reports a dividend yield of 13.72%, significantly higher than VOO's 1.03%. While this can provide higher income, it introduces complexities regarding tax treatment and the sustainability of payouts, which differs from standard index-tracking funds like VOO.

What is a dividend yield and how does it differ between these funds?

Dividend yield indicates the annual income return relative to the fund's price. QQQI lists a yield of 13.72%, whereas VOO lists 1.03%. This large discrepancy reflects their different strategies: QQQI focuses on generating high income through derivatives, while VOO tracks the S&P 500, which prioritises total return including growth and modest dividends. Higher yields do not necessarily mean better performance, but signal a different income objective.

How do the top holdings of QQQI and VOO overlap?

Both funds share significant exposure to mega-cap technology stocks. The top holdings for QQQI include NVDA (8.43%) and AAPL (7.77%), while VOO holds NVDA (8.08%) and AAPL (7.03%). Nine of the top ten holdings are identical: NVDA, AAPL, MSFT, MU, AMZN, META, GOOGL, GOOG, and TSLA. This overlap suggests both funds are influenced by similar large-cap tech companies, despite tracking different indices or using different strategies.

Which fund offers a more established history for investors?

VOO launched on September 7, 2010, providing over 15 years of operating history and extensive data on its reliability. In contrast, QQQI was established on January 30, 2024, resulting in a much shorter track record. Investors often value long histories when assessing how a fund tracks its benchmark and handles market volatility, making VOO a more proven entity compared to the newer QQQI.

How does the asset base influence liquidity for these ETFs?

VOO has net assets of $1.08 trillion, supporting high liquidity and typically tighter bid-ask spreads. QQQI has net assets of $14.8 billion, which is substantial but smaller than VOO. While QQQI remains liquid, larger asset bases like VOO's generally make buying and selling easier for large volumes with minimal price impact. Beginners should note that liquidity can affect transaction costs alongside the expense ratio.

Are these funds suitable for long-term growth or income?

QQQI is typically associated with investors prioritising regular distributions, given its 13.72% yield and derivative structure. VOO is associated with long-term growth through broad market exposure to large US companies. Investors seeking immediate cash flow might look at QQQI's features, while those focused on capital appreciation over time often reference VOO's tracking of the S&P 500. Neither is strictly better; they serve different portfolio roles.

What market segments do QQQI and VOO target?

VOO targets the S&P 500, representing 500 large-cap US companies. QQQI targets Nasdaq-100 exposure, which is heavily weighted towards technology and growth companies. Both markets are US-centric. VOO's category is Large Blend, while QQQI's is Derivative Income. The Nasdaq-100 tends to be more concentrated in tech than the S&P 500, which includes broader sectors like healthcare and industrials.

How does sector concentration affect these funds?

Both funds show high concentration in mega-cap tech stocks, as seen in their top holdings (NVDA, AAPL, MSFT). VOO holds 500 large-cap stocks, but performance is still heavily influenced by the technology sector. QQQI focuses on the Nasdaq-100 via derivatives, reinforcing tech exposure. Investors should be aware that despite different structures, both funds are sensitive to the performance of a similar group of large tech companies.

Does one fund offer more diversification than the other?

VOO offers broader exposure across 500 large US companies compared to the Nasdaq-100 subset targeted by QQQI. However, neither fund provides international or small-cap diversification. VOO's top ten holdings include tech giants, but it also includes companies from other sectors. QQQI's derivative strategy aims for income within the Nasdaq-100 framework. For beginners, VOO represents standard broad-market exposure, while QQQI represents a specialised income strategy.

What should beginners check before comparing yields?

Beginners should verify the nature of the yield. QQQI's 13.72% yield comes from a derivative income strategy, which may have different tax implications compared to standard dividends. VOO's 1.03% yield reflects typical S&P 500 dividends. Check the inception dates: QQQI launched in 2024, while VOO launched in 2010. Short operating histories mean less data on yield sustainability. Always read the prospectus for tax details.

How should I interpret the difference in expense ratios?

The 0.68% expense ratio for QQQI is higher than VOO's 0.03%. Over time, fees reduce compound growth. However, QQQI's strategy involves derivatives to generate income, which may justify the cost for investors seeking yield. VOO's low cost supports broad market tracking. Beginners should weigh the cost against the fund's objective. A higher fee isn't necessarily bad if the service provided, like high income, matches your goal.

QQQI vs VOO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare QQQI and VOO by fees, holdings, dividends and market tracking. QQQI focuses on derivative income with a 13.72% yield and 0.68% expense ratio, while VOO offers large blend exposure at a 1.03% yield and 0.03% expense ratio. This page examines how each fund tracks its respective market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

QQQI

Metric

VOO

0.68%

Expense Ratio

0.03%

13.72%

Dividend Yield

1.03%

$14.80B

Net Assets

$1.08T

107

Holdings

516

Jan 30, 2024

Inception Date

Sep 7, 2010

–

Index Tracked

–

Derivative Income

Fund Category

Large Blend

VOO costs about $65.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	QQQI	VOO
NVDANVIDIA Corporation	8.43%	8.08%
AAPLApple Inc.	7.77%	7.03%
MSFTMicrosoft Corporation	5.86%	5.70%
MUMicron Technology, Inc.	4.82%	1.63%
AMZNAmazon.com, Inc.	4.29%	3.84%
METAMeta Platforms, Inc.	3.21%	1.90%
GOOGLAlphabet Inc.	3.21%	3.01%
GOOGAlphabet Inc.	2.97%	2.40%
TSLATesla, Inc.	2.91%	1.57%

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Investment Analysis

QQQI

Pros

NEOS has established the fund, leveraging its significant assets of $14.8 billion to provide access to Nasdaq-100 exposure via derivatives.
The fund offers a high income stream with a 13.72% yield for investors prioritising regular distributions from Nasdaq-100 holdings.
Its top holdings are concentrated in mega-cap technology stocks, including Nvidia and Apple, potentially benefiting from their performance.

Considerations

The 0.68% expense ratio is significantly higher than the market average for broad equity ETFs, reducing net returns over time.
Inception in January 2024 means the fund has a short operating history, limiting the ability to assess its long-term tracking efficiency.
Use of derivatives can create complexities regarding tax treatment and income character, requiring careful consideration of the fund's structure.

VOO

Pros

Vanguard's massive asset base of $1.08 trillion supports high liquidity and tight bid-ask spreads for easy buying and selling.
The exceptionally low 0.03% expense ratio minimises costs, allowing more of the gross return to be retained by the investor.
A long history since 2010 has provided extensive data on the fund's reliability and its tracking of the S&P 500 index.

Considerations

The 1.03% dividend yield offers a much lower level of income compared to specialised high-income ETFs like the Nasdaq-100 fund.
Holding 500 large-cap US stocks creates concentration in the technology sector, meaning performance is heavily influenced by that group.
Exposure is limited to large US companies, offering no diversification into international markets, small-caps, or specific thematic sectors.

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About QQQI and VOO

QQQI (QQQI)

The NEOS NASDAQ 100 High Income ETF (QQQI) is a derivative income fund designed to offer investors exposure to the technology-heavy NASDAQ 100 index while generating substantial current income. Launched in January 2024, this ETF holds a diversified portfolio of 107 assets, primarily focusing on large-cap technology and growth companies. Its distinguishing feature is the systematic writing of covered call options on the underlying index, a strategy intended to harvest premium income that is distributed to shareholders. With a reported dividend yield of approximately 13.72%, it appeals to those seeking regular cash flow alongside potential capital appreciation. However, investors should note that the covered call strategy may limit upside potential during strong market rallies. The fund has an expense ratio of 0.68%, which is moderate for a derivative-based product. As with all investments, capital is at risk, and values can fluctuate due to market conditions.

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

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QQQI vs VOO

Fund Snapshot