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SPY vs QQQ

SPDR S&P 500 ETF Trust vs Invesco QQQ Trust

The short answer: SPY is the broad S&P 500. QQQ is the tech-heavy Nasdaq-100. Different exposures, different risk profiles, both very liquid.

Metric
SPY
QQQ
Issuer
State Street
Invesco
Benchmark
S&P 500 Index
Nasdaq-100 Index
Inception
Jan 22, 1993
Mar 10, 1999
Expense Ratio(lower is better)
945 bps
1800 bps
AUM(higher = more liquid)
$735.1B
$440.3B
Dividend Yield (TTM)
1.03%
0.42%
Dividend Frequency
Quarterly
Quarterly
Beta (vs S&P 500)(1 = market)
1.00
1.18
1-Year Return
26.58%
37.67%
3-Year Return (annualized)
22.41%
27.65%
5-Year Return (annualized)
13.46%
17.02%
10-Year Return (annualized)
15.26%
21.34%
Data as of May 9, 2026. Returns annualized; past performance is not indicative of future results.

Total Return

YTDSPY: 6.89% · QQQ: 14.51%
1YSPY: 26.58% · QQQ: 37.67%
3Y ann.SPY: 22.41% · QQQ: 27.65%
5Y ann.SPY: 13.46% · QQQ: 17.02%
10Y ann.SPY: 15.26% · QQQ: 21.34%

Which should you pick?

Choose SPY

Pick SPY for diversified large-cap U.S. exposure across all 11 sectors. It's the safer choice for a core position, with lower volatility and broader risk distribution.

Choose QQQ

Pick QQQ if you want to overweight tech and growth. About 50% of QQQ is technology stocks, which has driven outsized returns over the past decade but creates concentration risk.

Either is fine if…

Active traders often use both: SPY for broad market beta, QQQ for tech-specific plays. For long-term hold, lean SPY (or VOO if cost matters).

Holdings & sectors

SPY – Top Holdings

  • AAPLApple Inc7.1%
  • MSFTMicrosoft Corp6.6%
  • NVDANVIDIA Corp6.2%
  • AMZNAmazon.com Inc3.8%
  • GOOGLAlphabet Inc Class A2.2%

QQQ – Top Holdings

  • AAPLApple Inc8.9%
  • MSFTMicrosoft Corp8.2%
  • NVDANVIDIA Corp7.8%
  • AMZNAmazon.com Inc5.2%
  • AVGOBroadcom Inc4.6%

Sector Breakdown

Technology
SPY
30.0%
QQQ
50.0%
Communication
SPY
9.0%
QQQ
16.0%
Consumer Discretionary
SPY
10.0%
QQQ
13.0%
Healthcare
SPY
11.0%
QQQ
6.0%
Industrials
SPY
9.0%
QQQ
5.0%
Financials
SPY
13.0%
QQQ
0.5%
Consumer Staples
SPY
6.0%
QQQ
5.0%
Energy
SPY
4.0%
QQQ
0.5%
Utilities
SPY
2.5%
QQQ
1.2%
Materials
SPY
2.2%
QQQ
0.5%
Real Estate
SPY
2.3%
QQQ
0.3%

At a glance

Expense ratio
SPY945 bps
QQQ1800 bps
AUM
SPY$735.1B
QQQ$440.3B
Dividend yield
SPY1.03%
QQQ0.42%
5Y return (ann.)
SPY13.46%
QQQ17.02%

SPY vs QQQ – FAQ

Which is more volatile, SPY or QQQ?
QQQ. Its beta is ~1.16 vs SPY's 1.00, and tech concentration means bigger swings in both directions. In 2022 QQQ fell ~33% peak-to-trough vs SPY's ~25%.
How do their dividends compare?
SPY yields roughly 1.2%, QQQ yields about 0.6%. Tech companies in QQQ retain more cash for growth instead of paying dividends, while SPY includes higher-yielding sectors like financials and energy.
Can I trade options on both?
Yes — SPY and QQQ are the two most liquid options ETFs in the world. Both have penny-wide bid-ask spreads at most strikes and weekly expirations.
Should I pick SPY or QQQ for my Roth IRA?
If picking just one for a long horizon, SPY (or VOO) is the more diversified core. QQQ can complement it as a tech tilt rather than replace it.
What's the cheaper alternative to QQQ?
QQQM tracks the same Nasdaq-100 index at 0.15% (vs QQQ's 0.20%), with slightly less liquidity. For long-term hold, QQQM is the better pick.

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