⚖️ SPY vs QQQ Comparison · Free & No Signup

SPY vs QQQ: S&P 500 or Nasdaq-100 — Which ETF Wins?

QQQ has outperformed — but with bigger drawdowns and a higher fee.

💰 SPY is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict
🤝 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

Both funds trade commission-free at every major brokerage. Where to buy them →

✓ ETF BFF Editorial Team · Data as of Oct 14, 2026 · Educational only, not financial advice
SPY
State Street SPDR S&P 500 ETF Trust
Expense Ratio
0.09% ✓
1-Year Return
+17.5%
AUM
$809.2B
Holdings
503
QQQ
Invesco QQQ Trust
Expense Ratio
0.20%
1-Year Return
+24.8%
AUM
$498.9B
Holdings
101

📋 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?

Often fits investors who...
SPY
  • 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
Often fits investors who...
QQQ
  • 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.

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❓ SPY vs QQQ: Frequently Asked Questions

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.
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%.
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 →

📄 SPY & QQQ Fact Sheets

SPY Fact Sheet→ QQQ Fact Sheet→
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.