IQQQ vs SPY

Quick Verdict

SPY has a lower expense ratio. IQQQ delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: IQQQMore Diversified: SPY

Side-by-Side Comparison

MetricIQQQSPYWinner
Expense Ratio0.55%0.09%
AUM$391M$789.1B
Dividend Yield4.47%1.01%
Holdings108505
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 FamilyProSharesState Street Investment Management
CategoryEquityEquity
InceptionMar 18, 2024Jan 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

50.6%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

StockWeight in IQQQWeight in SPYDifference
NVDA6.31%7.31%1.00%
AAPL6.12%7.09%0.97%
MSFT3.83%4.43%0.60%
AMZNProProPro
GOOGLProProPro
MUProProPro
GOOGProProPro
AVGOProProPro
AMDProProPro
TSLAProProPro
See all 10 holdings IQQQ shares with SPY
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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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