QQQ vs SPYD

Quick Verdict

SPYD has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: SPYDHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQSPYDWinner
Expense Ratio0.18%0.07%
AUM$455.8B$7.7B
Dividend Yield0.41%4.26%
Holdings10883
YTD Return+12.48%+15.99%
1Y Return+22.35%+21.16%
3Y Return (annualized)+22.30%+13.79%
5Y Return (annualized)+14.24%+9.38%
Volatility (annualized)30.6%17.9%
Max Drawdown-83.0%-47.3%
Fund FamilyInvesco (US)State Street Investment Management
CategoryEquityEquity
InceptionMar 10, 1999Oct 21, 2015

QQQ vs SPYD Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) is a ETF from State Street Investment Management. Over the past year QQQ returned +22.35% while SPYD returned +21.16%. Year to date, QQQ is up 12.48% versus a gain of 15.99% for SPYD.

Over three years, QQQ compounded at +22.30% per year against +13.79% for SPYD; over five years the annualized figures are +14.24% and +9.38% respectively. Across the full 11-year window we track, QQQ has the edge at +12.91% annualized vs +7.06%. 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 17.9% for SPYD. 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 -47.3% for SPYD. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while SPYD charges 0.07%. On a $10,000 position that is $18 vs $7 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.26% for SPYD.

Holdings Overlap

1.6%overlap

QQQ and SPYD share 4 holdings out of 178 unique holdings combined, representing a 1.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QQQWeight in SPYDDifference
PEP0.84%1.16%0.32%
KHC0.13%1.32%1.19%
EXC0.21%1.24%1.03%
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Frequently Asked Questions

Which is cheaper, QQQ or SPYD?

QQQ has an expense ratio of 0.18% while SPYD charges 0.07%. SPYD is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, QQQ or SPYD?

Over the past year QQQ returned +22.35% vs +21.16% for SPYD, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), QQQ annualized +12.91% vs +7.06% for SPYD. Past performance does not guarantee future results.

Which is riskier, QQQ or SPYD?

QQQ has been the more volatile fund at 30.6% annualized versus 17.9% for SPYD. Worst drawdown: QQQ -83.0% vs SPYD -47.3%.

Should I hold both QQQ and SPYD?

QQQ and SPYD have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and SPYD?

QQQ and SPYD share 4 common holdings with a 1.6% weight overlap. Combined, they hold 178 unique securities.

Which pays a higher dividend, QQQ or SPYD?

QQQ yields 0.41% while SPYD yields 4.26%, so SPYD currently pays the higher dividend yield.

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