QQQ vs. SPY
Compare and contrast key facts about Invesco QQQ (QQQ) and SPDR S&P 500 ETF (SPY).
QQQ and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both QQQ and SPY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: QQQ or SPY.
Performance
QQQ vs. SPY - Performance Comparison
Returns By Period
In the year-to-date period, QQQ achieves a 23.47% return, which is significantly lower than SPY's 25.36% return. Over the past 10 years, QQQ has outperformed SPY with an annualized return of 18.10%, while SPY has yielded a comparatively lower 13.07% annualized return.
QQQ
23.47%
1.82%
10.79%
29.73%
20.93%
18.10%
SPY
25.36%
0.98%
11.79%
31.70%
15.55%
13.07%
Key characteristics
| QQQ | SPY | |
|---|---|---|
| Sharpe Ratio | 1.80 | 2.69 |
| Sortino Ratio | 2.40 | 3.59 |
| Omega Ratio | 1.32 | 1.50 |
| Calmar Ratio | 2.31 | 3.89 |
| Martin Ratio | 8.39 | 17.53 |
| Ulcer Index | 3.73% | 1.87% |
| Daily Std Dev | 17.41% | 12.15% |
| Max Drawdown | -82.98% | -55.19% |
| Current Drawdown | -2.08% | -1.41% |
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QQQ vs. SPY - Expense Ratio Comparison
QQQ has a 0.20% expense ratio, which is higher than SPY's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Correlation
The correlation between QQQ and SPY 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.
Risk-Adjusted Performance
QQQ vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ (QQQ) and SPDR S&P 500 ETF (SPY). 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.
Dividends
QQQ vs. SPY - Dividend Comparison
QQQ's dividend yield for the trailing twelve months is around 0.60%, less than SPY's 1.19% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QQQ Invesco QQQ | 0.60% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
SPY SPDR S&P 500 ETF | 1.19% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
QQQ vs. SPY - Drawdown Comparison
The maximum QQQ drawdown since its inception was -82.98%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for QQQ and SPY. For additional features, visit the drawdowns tool.
Volatility
QQQ vs. SPY - Volatility Comparison
Invesco QQQ (QQQ) has a higher volatility of 5.66% compared to SPDR S&P 500 ETF (SPY) at 4.09%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.