QQQ vs SPY
QQQ vs SPY
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. QQQ delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | QQQ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.09% | |
| AUM | $455.8B | $789.1B | |
| Dividend Yield | 0.41% | 1.01% | |
| Holdings | 108 | 505 | |
| YTD Return | +18.34% | +13.50% | |
| 1Y Return | +28.94% | +23.56% | |
| 3Y Return (annualized) | +25.28% | +21.17% | |
| 5Y Return (annualized) | +15.22% | +13.46% | |
| Volatility (annualized) | 30.6% | 15.3% | |
| Max Drawdown | -83.0% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 22, 1993 |
QQQ vs SPY Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year QQQ returned +28.94% while SPY returned +23.56%. Year to date, QQQ is up 18.34% versus a gain of 13.50% for SPY.
Over three years, QQQ compounded at +25.28% per year against +21.17% for SPY; over five years the annualized figures are +15.22% and +13.46% respectively. Across the full 27-year window we track, QQQ has the edge at +13.12% annualized vs +8.85%. 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 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 -83.0% for QQQ 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SPY charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.01% for SPY.
Holdings Overlap
QQQ and SPY share 88 holdings out of 518 unique holdings combined, representing a 54.1% weight overlap.
High overlap means holding both may not provide much additional diversification.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in SPY | Difference |
|---|---|---|---|
| NVDA | 7.88% | 7.31% | 0.57% |
| AAPL | 7.46% | 7.09% | 0.37% |
| MSFT | 4.65% | 4.43% | 0.22% |
| AMZN | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
See all 10 holdings QQQ 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, QQQ or SPY?
QQQ has an expense ratio of 0.18% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, QQQ or SPY?
Over the past year QQQ returned +28.94% vs +23.56% for SPY, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), QQQ annualized +13.12% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, QQQ or SPY?
QQQ has been the more volatile fund at 30.6% annualized versus 15.3% for SPY. Worst drawdown: QQQ -83.0% vs SPY -56.5%.
Should I hold both QQQ and SPY?
QQQ and SPY have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SPY?
QQQ and SPY share 88 common holdings with a 54.1% weight overlap. Combined, they hold 518 unique securities.
Which pays a higher dividend, QQQ or SPY?
QQQ yields 0.41% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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