SPY vs. TQQQ

Last updated Jun 9, 2026

SPY (State Street SPDR S&P 500 ETF) and TQQQ (ProShares UltraPro QQQ) are both exchange-traded funds - SPY is a S&P 500 fund tracking the S&P 500 Index, while TQQQ is a Leveraged Equities fund tracking the NASDAQ-100 Index (300%). Both are passively managed. Over the past 10 years, SPY returned 15.27%/yr vs 43.95%/yr for TQQQ. Their correlation of 0.90 suggests significant overlap in exposure. SPY charges 0.09%/yr vs 0.95%/yr for TQQQ.

Performance

SPY vs. TQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street SPDR S&P 500 ETF (SPY) and ProShares UltraPro QQQ (TQQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SPY achieves a 8.70% return, which is significantly lower than TQQQ's 44.91% return. Over the past 10 years, SPY has underperformed TQQQ with an annualized return of 15.27%, while TQQQ has yielded a comparatively higher 43.95% annualized return.

SPY

• 1D: 0.23%
• 1M: 0.22%
• YTD: 8.70%
• 6M: 8.75%
• 1Y: 24.79%
• 3Y*: 21.35%
• 5Y*: 13.42%
• 10Y*: 15.27%

TQQQ

• 1D: 4.41%
• 1M: -0.01%
• YTD: 44.91%
• 6M: 37.12%
• 1Y: 106.99%
• 3Y*: 62.78%
• 5Y*: 24.89%
• 10Y*: 43.95%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SPY vs. TQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPY State Street SPDR S&P 500 ETF	8.70%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%
TQQQ ProShares UltraPro QQQ	44.91%	34.35%	58.27%	198.04%	-79.09%	82.98%	110.05%	133.84%	-19.79%	118.06%

Correlation

The correlation between SPY and TQQQ is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Feb 11, 2010	0.90

The correlation between SPY and TQQQ has been stable across timeframes, ranging from 0.90 to 0.94 - a consistent structural relationship.

SPY vs. TQQQ - Sectors Allocation Comparison

Sectors	SPY	TQQQ
Technology	35.9%	53.8%
Financial Services	11.8%	0.2%
Communication Services	11.3%	15.8%
Consumer Cyclical	10.3%	12.3%
Healthcare	8.4%	4.2%
Industrials	7.8%	2.8%
Consumer Defensive	4.8%	7.7%
Energy	3.6%	0.6%
Utilities	2.4%	1.4%
Real Estate	1.9%	0.1%
Basic Materials	1.8%	1.1%

Return for Risk

SPY vs. TQQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SPY

SPY Risk / Return Rank: 69
SPY Sharpe Ratio Rank: 70
SPY Sortino Ratio Rank: 67
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

TQQQ

TQQQ Risk / Return Rank: 63
TQQQ Sharpe Ratio Rank: 74
TQQQ Sortino Ratio Rank: 57
TQQQ Omega Ratio Rank: 60
TQQQ Calmar Ratio Rank: 64
TQQQ Martin Ratio Rank: 59

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SPY vs. TQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street SPDR S&P 500 ETF (SPY) and ProShares UltraPro QQQ (TQQQ). 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.

	SPY	TQQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.06	2.16	-0.10
Sortino ratio: Return per unit of downside risk	2.78	2.45	+0.32
Omega ratio: Gain probability vs. loss probability	1.38	1.33	+0.04
Calmar ratio: Return relative to maximum drawdown	2.80	2.91	-0.11
Martin ratio: Return relative to average drawdown	12.93	9.45	+3.48
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPY vs. TQQQ - Sharpe Ratio Comparison

The current SPY Sharpe Ratio is 2.06, which is comparable to the TQQQ Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of SPY and TQQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SPY	TQQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.06	2.16	-0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.79	0.37	+0.42
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.85	0.67	+0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.72	-0.14

Drawdowns

SPY vs. TQQQ - Drawdown Comparison

The maximum SPY drawdown since its inception was -55.19%, smaller than the maximum TQQQ drawdown of -81.66%. Use the drawdown chart below to compare losses from any high point for SPY and TQQQ.

Drawdown Indicators

	SPY	TQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-55.19%	-81.66%	+26.47%
Max Drawdown (1Y) Largest decline over 1 year	-8.88%	-36.97%	+28.09%
Max Drawdown (3Y) Largest decline over 3 years	-18.76%	-58.04%	+39.28%
Max Drawdown (5Y) Largest decline over 5 years	-24.50%	-81.66%	+57.16%
Max Drawdown (10Y) Largest decline over 10 years	-33.72%	-81.66%	+47.94%
Current Drawdown Current decline from peak	-2.68%	-12.55%	+9.87%
Average Drawdown Average peak-to-trough decline	-9.04%	-18.52%	+9.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.92%	11.36%	-9.44%

Volatility

SPY vs. TQQQ - Volatility Comparison

The current volatility for State Street SPDR S&P 500 ETF (SPY) is 3.72%, while ProShares UltraPro QQQ (TQQQ) has a volatility of 20.84%. This indicates that SPY experiences smaller price fluctuations and is considered to be less risky than TQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPY	TQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.72%	20.84%	-17.12%
Volatility (6M) Calculated over the trailing 6-month period	9.31%	39.54%	-30.23%
Volatility (1Y) Calculated over the trailing 1-year period	12.10%	49.94%	-37.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.09%	66.84%	-49.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.96%	66.15%	-48.19%

SPY vs. TQQQ - Expense Ratio Comparison

SPY has a 0.09% expense ratio, which is lower than TQQQ's 0.95% expense ratio.

Dividends

SPY vs. TQQQ - Dividend Comparison

SPY's dividend yield for the trailing twelve months is around 1.00%, more than TQQQ's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.00%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
TQQQ ProShares UltraPro QQQ	0.41%	0.65%	1.27%	1.26%	0.57%	0.00%	0.00%	0.06%	0.11%	0.00%	0.00%	0.01%

Frequently Asked Questions

Can I hold both SPY and TQQQ in my portfolio?

With a correlation of 0.93, SPY and TQQQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SPY or TQQQ?

TQQQ has higher volatility (20.84%) compared to SPY (3.72%). In terms of maximum drawdown, SPY dropped -55.19% vs TQQQ's -81.66%.

Which ETF is better, SPY or TQQQ?

On 10-year performance, TQQQ leads with 43.95% vs 15.27% for SPY. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 3.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPY or TQQQ?

Over the 10-year period, TQQQ has performed better with a 43.95% return vs 15.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPY or TQQQ?

SPY is cheaper with a 0.09% expense ratio, compared with 0.95% for TQQQ.

Which ETF pays a higher dividend yield, SPY or TQQQ?

SPY has the higher dividend yield at 1.00%, compared with 0.41% for TQQQ.

What is the main difference between SPY and TQQQ?

SPY is categorized as S&P 500, while TQQQ is Leveraged Equities. SPY tracks S&P 500 Index, while TQQQ tracks NASDAQ-100 Index (300%). They also come from different issuers: State Street and ProShares. Their fees differ too: 0.09% for SPY and 0.95% for TQQQ.

Which has better risk-adjusted returns?

TQQQ currently has the higher Sharpe Ratio (2.16 vs 2.06), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.