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Own Both VOO and QQQM? You May Be Buying the Same Stocks Twice.

2026-10-12 11:35 •Ben Gran •The Motley Fool Positive Axe Cap view: Selective •Equities•Capital Returns•Technology•AI•Semiconductors•Healthcare•Consumer•Retail •VOO•QQQM•VGT•SCHD•DGRO

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Beware Double Dipping in Tech: VOO and QQQM Overlap

Holding both S&P 500 and Nasdaq-100 ETFs means heavy exposure to the same handful of tech giants, risking a tech bubble fallout.

Many South African investors eye US ETFs like VOO and QQQM to get broad exposure to America's largest companies. But owning both can be deceptive; they largely track the same mega-cap tech stocks — Apple, Microsoft, Nvidia, Alphabet and Amazon. This overlap means you’re not diversifying as much as you think, and that matters because these names form a big chunk of both funds. In a market nervous about soaring tech valuations and a possible AI-driven bubble, doubling down here feels risky. Instead, consider dividend-focused ETFs such as SCHD or DGRO, which spread exposure into sectors like energy and healthcare and include dividend-paying tech stocks. For JSE investors, this caution rings true when looking at local tech proxies like Naspers or Prosus, which are themselves exposed to US tech giants. Watch the rand too: a volatile USD/ZAR will impact foreign gains or losses from US ETFs. This all argues for trimming heavy tech allocations and adding defensive income stocks locally or through ETFs. The view might falter if tech profits keep surprising on the upside, keeping the bubble inflate longer. this is just our opinion and not financial advice

How I would invest

I would trim holdings in overlapping US tech ETFs like VOO and QQQM and shift some capital into dividend-focused ETFs or local defensive counters like Sanlam or Shoprite. Keep an eye on USD/ZAR moves, as currency swings will affect overall returns.

What I would watch
  • VOO
  • QQQM
  • SCHD
  • DGRO
  • USD/ZAR
  • Naspers
  • Prosus
What could go wrong
  • Prolonged tech rally defies bubble concerns
  • Sharp rand movements impacting rand-hedge returns
How strongly I feel

7/10

Popular S&P 500 and Nasdaq-100 index funds hold nearly identical tech-heavy portfolios, creating significant overlap for investors seeking diversification. The article examines how major ETFs like VOO and QQQM concentrate heavily in the same mega-cap tech stocks (Nvidia, Apple, Microsoft, Alphabet, Amazon), and suggests dividend-focused ETFs like SCHD and DGRO as alternatives for those concerned about tech concentration and potential AI bubble risks.

Our take is based on reporting first published by The Motley Fool.

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