🤝 BFF Take
QQQ for Tech Believers, SPY for Everyone Else
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.
📋 Quick Takeaways
📊QQQ has beaten SPY by 4–6% annualized over the last decade — but lost 32% in 2022 vs SPY's 18% decline
💰QQQ costs 0.20% vs SPY's 0.0945% — more than double the expense ratio for a concentrated sector bet
⚠️QQQ has no financial stocks — banks list on NYSE, not Nasdaq — making it more concentrated than it appears
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
SPY
SPDR S&P 500 ETF Trust
📋 SPY vs QQQ — Key Facts Side by Side
| Metric |
SPY |
QQQ |
| Fund Name |
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 |
$702B+ |
$313B+ |
| Holdings |
503 |
101 |
| Inception |
1993 |
1999 |
| 1-Year Return |
+17.30% |
+20.50% |
| 3-Year Return |
+10.20% |
+9.10% |
| 5-Year Return |
+14.60% |
+19.80% |
| Avg Bid-Ask Spread |
0.00% |
0.00% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 SPY vs QQQ — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy SPY or QQQ?
Choose if...
SPY
- You want the lowest fees — saves ~$11/yr per $10K vs QQQ
- You want broader diversification (503 holdings vs 101)
- You want focused large-cap US stock exposure via S&P 500
Choose if...
QQQ
- You want tech-heavy large-cap growth exposure via Nasdaq-100
- You already use Invesco and prefer staying within their fund family
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❓ SPY vs QQQ — Frequently Asked Questions
Has QQQ always outperformed SPY?
No. QQQ dramatically underperformed from 2000–2012 following the dot-com crash. QQQ's outperformance is concentrated in the 2013–2021 period when large-cap tech dominated everything. Investors who extrapolate the last decade's results should note that QQQ was also the worst-performing major ETF of the 2000s.
Is QQQ riskier than SPY?
Yes. QQQ has higher volatility (beta ~1.2 vs SPY's ~1.0), larger drawdowns in tech selloffs, and more concentration risk. It holds 100 stocks vs SPY's 500, with the top 10 holdings often representing 50%+ of the fund. In 2022, QQQ lost 32% vs SPY's 18%.
Why doesn't QQQ hold financial stocks?
Because Nasdaq traditionally lists technology and growth companies, while major banks (JPMorgan, Bank of America, Wells Fargo) list on the NYSE. QQQ tracks the Nasdaq-100, which excludes financial sector companies by rule. This is why QQQ is more tech-concentrated than it might appear from its name.
New to ETF investing? See answers to the most common ETF questions →
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.