^GSPC vs. QQQ
Compare and contrast key facts about S&P 500 (^GSPC) and Invesco QQQ (QQQ).
QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ^GSPC or QQQ.
Key characteristics
^GSPC | QQQ | |
---|---|---|
YTD Return | 11.29% | 10.74% |
1Y Return | 29.16% | 39.36% |
3Y Return (Ann) | 8.35% | 12.27% |
5Y Return (Ann) | 13.20% | 20.73% |
10Y Return (Ann) | 10.97% | 18.86% |
Sharpe Ratio | 2.44 | 2.43 |
Daily Std Dev | 11.61% | 16.27% |
Max Drawdown | -56.78% | -82.98% |
Current Drawdown | 0.00% | 0.00% |
Correlation
The correlation between ^GSPC and QQQ is 0.86, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
^GSPC vs. QQQ - Performance Comparison
The year-to-date returns for both stocks are quite close, with ^GSPC having a 11.29% return and QQQ slightly lower at 10.74%. Over the past 10 years, ^GSPC has underperformed QQQ with an annualized return of 10.97%, while QQQ has yielded a comparatively higher 18.86% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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Risk-Adjusted Performance
^GSPC vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for S&P 500 (^GSPC) and Invesco QQQ (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Drawdowns
^GSPC vs. QQQ - Drawdown Comparison
The maximum ^GSPC drawdown since its inception was -56.78%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for ^GSPC and QQQ. For additional features, visit the drawdowns tool.
Volatility
^GSPC vs. QQQ - Volatility Comparison
The current volatility for S&P 500 (^GSPC) is 3.47%, while Invesco QQQ (QQQ) has a volatility of 5.12%. This indicates that ^GSPC experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.