SPY vs QQQ: S&P 500 or Nasdaq-100 — Which ETF Wins?
QQQ has outperformed — but with bigger drawdowns and a higher fee.
QQQ has delivered stronger returns than SPY over the last decade due to its heavy tech weighting (~60% technology), but it also lost 32% in 2022 vs SPY's 18% decline. QQQ costs 0.20% vs SPY's 0.0945%. If you believe tech will continue to outperform, QQQ gives you that concentrated bet. If you want broad market exposure without making a sector call, SPY is more diversified with less fee drag. Most long-term investors are better served by SPY or a total market fund.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 SPY vs QQQ: Key Facts Side by Side
| Metric | SPY | QQQ |
|---|---|---|
| Fund Name | State Street SPDR S&P 500 ETF Trust | Invesco QQQ Trust |
| Issuer | State Street | Invesco |
| Tracks Index | S&P 500 | Nasdaq-100 |
| Expense Ratio | 0.09% ✓ | 0.20% |
| Cost per $10K/yr | $9.45 | $20.00 |
| AUM | $809.2B | $498.9B |
| Holdings | 503 | 101 |
| Inception | 1993 | 1999 |
| 1-Year Return | +17.50% | +24.76% |
| 3-Year Return | +22.99% | +27.05% |
| 5-Year Return | +13.92% | +16.57% |
| Dividend Yield | 0.99% | 0.42% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.00% | 0.00% |
AUM and returns updated Oct 14, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
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📊 SPY vs QQQ: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the lowest fees: saves ~$11/yr per $10K vs QQQ
- want broader diversification (503 holdings vs 101)
- want focused large-cap US stock exposure via S&P 500
- want tech-heavy large-cap growth exposure via Nasdaq-100
- already use Invesco and prefer staying within one fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
⚙️ Want the Full Interactive Comparison?
Side-by-side holdings overlap, sector breakdown, and live performance tabs, all in one place.
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New to ETF investing? See answers to the most common ETF questions →