QQQ vs SDY
QQQ vs SDY
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Dividend ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. SDY offers more diversification with 156 holdings.
Side-by-Side Comparison
| Metric | QQQ | SDY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $455.8B | $22.0B | |
| Dividend Yield | 0.41% | 2.45% | |
| Holdings | 108 | 158 | |
| YTD Return | +16.83% | +13.40% | |
| 1Y Return | +26.58% | +16.44% | |
| 3Y Return (annualized) | +24.70% | +10.60% | |
| 5Y Return (annualized) | +14.88% | +7.69% | |
| Volatility (annualized) | 30.6% | 14.9% | |
| Max Drawdown | -83.0% | -58.6% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Nov 8, 2005 |
QQQ vs SDY Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR S&P Dividend ETF (SDY) is a ETF from State Street Investment Management. Over the past year QQQ returned +26.58% while SDY returned +16.44%. Year to date, QQQ is up 16.83% versus a gain of 13.40% for SDY.
Over three years, QQQ compounded at +24.70% per year against +10.60% for SDY; over five years the annualized figures are +14.88% and +7.69% respectively. Across the full 21-year window we track, QQQ has the edge at +13.06% annualized vs +6.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 14.9% for SDY. 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 -83.0% for QQQ and -58.6% for SDY. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SDY charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.45% for SDY.
Holdings Overlap
QQQ and SDY share 15 holdings out of 244 unique holdings combined, representing a 6.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in SDY | Difference |
|---|---|---|---|
| MSFT | 4.65% | 0.37% | 4.28% |
| TXN | 1.20% | 1.56% | 0.36% |
| WMT | 2.47% | 0.28% | 2.19% |
| QCOM | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
| ADP | Pro | Pro | Pro |
| COST | Pro | Pro | Pro |
| LIN:IE | Pro | Pro | Pro |
| XEL | Pro | Pro | Pro |
| MCHP | Pro | Pro | Pro |
See all 10 holdings QQQ shares with SDY 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, QQQ or SDY?
QQQ has an expense ratio of 0.18% while SDY charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or SDY?
Over the past year QQQ returned +26.58% vs +16.44% for SDY, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), QQQ annualized +13.06% vs +6.03% for SDY. Past performance does not guarantee future results.
Which is riskier, QQQ or SDY?
QQQ has been the more volatile fund at 30.6% annualized versus 14.9% for SDY. Worst drawdown: QQQ -83.0% vs SDY -58.6%.
Should I hold both QQQ and SDY?
QQQ and SDY have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SDY?
QQQ and SDY share 15 common holdings with a 6.9% weight overlap. Combined, they hold 244 unique securities.
Which pays a higher dividend, QQQ or SDY?
QQQ yields 0.41% while SDY yields 2.45%, so SDY currently pays the higher dividend yield.
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