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by klos ✦

QQQ Our Pick vs. SPY

Invesco QQQ Trust vs. SPDR S&P 500 ETF Trust

Correlation
93%
QQQ CAGR
+18.86%
SPY CAGR
+13.55%

Buy QQQ if…

  • You like performance
  • You want exposure to Nasdaq 100
  • You believe in the technological future

Buy SPY if…

  • You're a traditionalist
  • You want to track S&P 500
  • The word "diversification" is music to your ears

The Legend Meets The Future

The main choice here is between S&P 500 and Nasdaq 100.

TL;DR:

SPY tracks the S&P 500 with around 500 companies across all sectors, while QQQ tracks the Nasdaq-100 with about 100 companies that are heavily concentrated in tech. Think of SPY as the broad "entire US economy" play — you get everything from banks to healthcare to energy. QQQ is basically "big tech and innovation" — it's dominated by names like Nvidia, Apple, Microsoft, and Amazon, with over half the fund in technology stocks.

SPY is the diversified, sleep-at-night classic, while QQQ is a bet on the technological future. You know where I stand.

You may also want to read:

QQQ vs. VOO, SPY vs. VOO, QQQ vs. QQQM, and QQQ vs. VGT.

Jan Klosowski
Read my blog →
Dollar-cost averaging (DCA) often provides a more realistic estimate of actual investment performance, as it reflects how most investors gradually invest over time. This simulation assumes monthly purchases.
Type
ETF
ETF
Exchange
NASDAQ
NYSE ARCA
Currency
USD
USD
Issuer
Invesco
State Street Investment Management
Holdings
100
99
Index
NASDAQ 100
S&P 500
AUM
$407B
$703B
Inception
1999
1993

Key Metrics

Expense Ratio
0.20%
0.10%
Dividend Yield
+0.47%
+1.09%
Daily Liquidity
60.99M
81.12M
Risk (β)
1.10
1.00

Expense Ratio Calculator

$
%
QQQ Fees
$0
SPY Fees
$0

Annualized Returns

YTD
+23.05%
+18.31%
1 Year
+20.51%
+14.40%
3 Years
+30.37%
+21.37%
5 Years
+16.00%
+14.81%
10 Years
+19.40%
+14.57%

Top 10 Holdings

NVIDIA Corporation
9.28%
NVIDIA Corporation
7.52%
Apple Inc
8.92%
Apple Inc
7.20%
Microsoft Corporation
7.68%
Microsoft Corporation
6.20%
Broadcom Inc
6.37%
Amazon.com Inc
3.89%
Amazon.com Inc
5.29%
Alphabet Inc Class A
3.14%
Alphabet Inc Class A
3.89%
Broadcom Inc
3.11%
Alphabet Inc Class C
3.63%
Alphabet Inc Class C
2.52%
Tesla Inc
3.33%
Meta Platforms Inc.
2.38%
Meta Platforms Inc.
2.95%
Tesla Inc
2.07%
Netflix Inc
2.42%
Berkshire Hathaway Inc
1.60%

Related Comparisons

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Compare SPY to:

Sector Breakdown

QQQ SPY