QQQ vs SPHY
QQQ vs SPHY
Invesco QQQ Trust, Series 1 vs State Street SPDR Portfolio High Yield Bond ETF
Quick Verdict
SPHY has a lower expense ratio. QQQ delivered stronger 1-year returns. SPHY offers more diversification with 351 holdings.
Side-by-Side Comparison
| Metric | QQQ | SPHY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $455.8B | $11.6B | |
| Dividend Yield | 0.41% | 7.24% | |
| Holdings | 108 | 1,942 | |
| YTD Return | +14.45% | +1.45% | |
| 1Y Return | +24.70% | +4.80% | |
| 3Y Return (annualized) | +24.19% | +8.15% | |
| 5Y Return (annualized) | +14.49% | +4.01% | |
| Volatility (annualized) | 30.6% | 8.6% | |
| Max Drawdown | -83.0% | -22.4% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Jun 18, 2012 |
QQQ vs SPHY Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR Portfolio High Yield Bond ETF (SPHY) is a ETF from State Street Investment Management. Over the past year QQQ returned +24.70% while SPHY returned +4.80%. Year to date, QQQ is up 14.45% versus a gain of 1.45% for SPHY.
Over three years, QQQ compounded at +24.19% per year against +8.15% for SPHY; over five years the annualized figures are +14.49% and +4.01% respectively. Across the full 7-year window we track, QQQ has the edge at +12.98% annualized vs +3.62%. 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 8.6% for SPHY. 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 -22.4% for SPHY. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SPHY charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 7.24% for SPHY.
Holdings Overlap
QQQ and SPHY share 0 holdings out of 454 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SPHY?
QQQ has an expense ratio of 0.18% while SPHY charges 0.05%. SPHY is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, QQQ or SPHY?
Over the past year QQQ returned +24.70% vs +4.80% for SPHY, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), QQQ annualized +12.98% vs +3.62% for SPHY. Past performance does not guarantee future results.
Which is riskier, QQQ or SPHY?
QQQ has been the more volatile fund at 30.6% annualized versus 8.6% for SPHY. Worst drawdown: QQQ -83.0% vs SPHY -22.4%.
Should I hold both QQQ and SPHY?
QQQ and SPHY have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SPHY?
QQQ and SPHY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 454 unique securities.
Which pays a higher dividend, QQQ or SPHY?
QQQ yields 0.41% while SPHY yields 7.24%, so SPHY currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.