QQQ vs SPY
NASDAQ 100 (QQQ) vs S&P 500 (SPY) — Tech-heavy growth or the original index fund?
Understanding QQQ and SPY
QQQ (Invesco QQQ Trust) tracks the NASDAQ-100 Index, providing concentrated exposure to the 100 largest non-financial companies on the NASDAQ. With heavy weightings in Apple, Microsoft, Amazon, and NVIDIA, QQQ is effectively a bet on American tech innovation.
SPY (SPDR S&P 500 ETF Trust) is the original index ETF, launched in 1993. As the most-traded ETF in the world, SPY tracks the S&P 500 with unmatched liquidity. With $698.3B in assets and an expense ratio of 0.09%, it's the benchmark by which all other ETFs are measured.
The key difference: QQQ excludes financials and concentrates on tech, while SPY represents all 11 market sectors. Over 10 years, QQQ has returned +482.59% vs SPY's +289.56% — but QQQ's volatility of 14.3% far exceeds SPY's 11.6%.
Head to Head
Compare QQQ and SPY across key metrics that matter to long-term investors: expense ratios, historical returns, volatility, and maximum drawdown. The "Winner" column highlights which ETF performs better on each metric.
| Metric | QQQ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.09% | SPY |
| Total Assets | $395.0B | $698.3B | SPY |
| Number of Holdings | ~100 | ~500 | SPY |
| 1 Year Return | +27.08% | +21.52% | QQQ |
| 5 Year Return | +91.41% | +83.25% | QQQ |
| 10 Year Return | +482.59% | +289.56% | QQQ |
| Volatility (3Y) | 14.3% | 11.6% | SPY |
| Max Drawdown | -81.1% | -50.8% | SPY |
| Current Price | $593.72 | $662.29 | — |
Growth of $10,000
The table below shows what $10,000 invested at different points in time would be worth today. The chart visualizes long-term growth starting from the same inception date for both ETFs.
Monthly Returns Comparison
These heatmaps reveal the month-by-month performance patterns of each ETF. Green indicates positive returns, red indicates negative returns, with darker colors showing larger moves. Use these to identify volatility patterns — notice how QQQ tends to have more extreme months (both positive and negative) compared to SPY's more moderate swings.
QQQ Monthly Returns
SPY Monthly Returns
Key Differences
QQQ (NASDAQ 100)
- • Tracks 100 largest non-financial NASDAQ companies
- • Heavy tech concentration (~50% in tech)
- • Higher growth potential, higher volatility
- • Excludes financial sector entirely
- • Best for tech-focused growth investors
SPY (S&P 500)
- • The original S&P 500 ETF (since 1993)
- • Most traded ETF in the world
- • Lower volatility, broad diversification
- • All 11 sectors represented
- • Best for core portfolio holdings
The Bottom Line
Choose QQQ if you believe tech will continue to outperform and can handle more volatility. Choose SPY for the most liquid, battle-tested S&P 500 ETF with broad market exposure. Note: VOO offers the same S&P 500 exposure as SPY but with a lower expense ratio.
Frequently Asked Questions
What is the difference between QQQ and SPY?
QQQ tracks the NASDAQ 100 (100 largest non-financial NASDAQ companies, heavily tech-weighted), while SPY tracks the S&P 500 (500 largest US companies across all sectors). QQQ is more concentrated and volatile; SPY is more diversified.
Which is better: QQQ or SPY?
QQQ has historically outperformed SPY due to tech sector growth, but with higher volatility and drawdowns. SPY offers broader diversification and lower risk. Your choice depends on your risk tolerance and belief in continued tech outperformance.
Why is SPY more popular than QQQ?
SPY was the first ETF ever created (1993) and remains the most liquid ETF in the world. It's used heavily by institutions for hedging and trading. QQQ is popular for growth exposure but has less trading volume.
What is the expense ratio for QQQ vs SPY?
QQQ has an expense ratio of 0.18%, while SPY has an expense ratio of 0.09%. Both are relatively low, but VOO offers the same S&P 500 exposure as SPY for just 0.03%.
Other NASDAQ 100 & S&P 500 ETFs
QQQ and SPY aren't the only options. Here are alternative ETFs and mutual funds that track similar indices:
NASDAQ 100 Alternatives
- QQQM — Invesco NASDAQ 100 ETF. Same index as QQQ but with a lower expense ratio (0.15% vs 0.20%). Best for buy-and-hold investors.
- ONEQ — Fidelity NASDAQ Composite ETF. Tracks ~1,000 NASDAQ stocks, not just the top 100. Broader exposure.
- TQQQ — ProShares UltraPro QQQ. 3x daily leveraged QQQ. For short-term trading only, not buy-and-hold.
- FNCMX — Fidelity NASDAQ Composite Index Fund. Mutual fund alternative for retirement accounts.
S&P 500 Alternatives
- VOO — Vanguard S&P 500 ETF. Same index as SPY but cheaper (0.03% expense ratio). Most popular for long-term.
- SPLG — SPDR Portfolio S&P 500. State Street's low-cost S&P 500 option (0.02%).
- IVV — iShares Core S&P 500. BlackRock's S&P 500 ETF (0.03%). Third largest ETF in the world.
- FXAIX — Fidelity 500 Index Fund. Zero-minimum mutual fund tracking the S&P 500. Popular in 401(k) plans.
More QQQ Comparisons
Last updated: 3/16/2026