IQQQ vs SPY
IQQQ vs SPY
Proshares Nasdaq-100 High Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. IQQQ delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | IQQQ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.09% | |
| AUM | $391M | $789.1B | |
| Dividend Yield | 4.47% | 1.01% | |
| Holdings | 108 | 505 | |
| YTD Return | +15.22% | +13.79% | |
| 1Y Return | +24.83% | +23.66% | |
| 3Y Return (annualized) | - | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 16.9% | 15.3% | |
| Max Drawdown | -21.5% | -56.5% | |
| Fund Family | ProShares | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 18, 2024 | Jan 22, 1993 |
IQQQ vs SPY Performance
Proshares Nasdaq-100 High Income ETF (IQQQ) is a ETF from ProShares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IQQQ returned +24.83% while SPY returned +23.66%. Year to date, IQQQ is up 15.22% versus a gain of 13.79% for SPY.
Risk: Volatility and Drawdowns
IQQQ has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -21.5% for IQQQ and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IQQQ charges 0.55% per year while SPY charges 0.09%. On a $10,000 position that is $55 vs $9 annually, a gap of $46 per year that compounds over a long holding period. On income, IQQQ currently yields 4.47% against 1.01% for SPY.
Holdings Overlap
IQQQ and SPY share 88 holdings out of 519 unique holdings combined, representing a 50.6% weight overlap.
High overlap means holding both may not provide much additional diversification.
Top Shared Holdings
| Stock | Weight in IQQQ | Weight in SPY | Difference |
|---|---|---|---|
| NVDA | 6.31% | 7.31% | 1.00% |
| AAPL | 6.12% | 7.09% | 0.97% |
| MSFT | 3.83% | 4.43% | 0.60% |
| AMZN | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
See all 10 holdings IQQQ shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, IQQQ or SPY?
IQQQ has an expense ratio of 0.55% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, IQQQ or SPY?
Over the past year IQQQ returned +24.83% vs +23.66% for SPY, so IQQQ leads on 1-year performance. Over the longest common window we track (2 years), IQQQ annualized +18.72% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, IQQQ or SPY?
IQQQ has been the more volatile fund at 16.9% annualized versus 15.3% for SPY. Worst drawdown: IQQQ -21.5% vs SPY -56.5%.
Should I hold both IQQQ and SPY?
IQQQ and SPY have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IQQQ and SPY?
IQQQ and SPY share 88 common holdings with a 50.6% weight overlap. Combined, they hold 519 unique securities.
Which pays a higher dividend, IQQQ or SPY?
IQQQ yields 4.47% while SPY yields 1.01%, so IQQQ currently pays the higher dividend yield.
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