QQQvs SPY

Quick verdict

Invesco QQQ Trust (QQQ) and SPDR S&P 500 ETF Trust (SPY) are often compared by investors building a core portfolio. Their holdings overlap by roughly 30.1% (moderate overlap), sharing 6 of their top positions. SPY is cheaper at 0.20% vs 0.09%, SPY pays more income, and QQQ has the stronger recent track record. On balance SPY scores higher, but if overlap is high you likely only need one of the two.

Holdings overlap

QQQ and SPY overlap by about 30.1% across their largest holdings, which is moderate. There is meaningful shared exposure but also genuine differences, so pairing them is defensible if you want a tilt.

2-year relative performance

At-a-glance comparison

Cost

SPY is the lower-cost fund. QQQ charges an expense ratio of 0.20% versus 0.09% for SPY. On a $10,000 position that is about $20 vs $9 per year — small, but it compounds over decades.

Income & yield

QQQ yields 0.6% and SPY yields 1.2%, so SPY is the stronger choice for income-focused investors. Higher yield can reflect a value or covered-call strategy rather than simply "more free money," so check the category: US Large-Cap Growth (Nasdaq-100) vs US Large-Cap Blend.

Performance

Over five years QQQ has returned 14.8% annualised against 5.7% for SPY; on a three-year basis it is 17.3% vs 15.2%. QQQ leads recently, though past performance does not predict future results and is heavily influenced by sector weightings.

Structure & diversification

QQQ holds about 84 positions (US Large-Cap Growth (Nasdaq-100), Invesco); SPY holds about 251 (US Large-Cap Blend, State Street). SPY is the more diversified by raw holding count, and AUM is 441.8B vs 111.0B — larger funds tend to be more liquid with tighter spreads.

Which ETF fits which investor

For the lowest cost, choose SPY. For the most income, SPY. For growth exposure, QQQ. Given 30.1% overlap, holding both mainly makes sense if you specifically want to tilt toward one strategy — otherwise pick the single fund that matches your goal. This is a factual comparison, not advice.

• Lowest cost: SPY
• Most income: SPY
• Growth exposure: QQQ

Frequently asked questions

How much do QQQ and SPY overlap?

Their largest holdings overlap by approximately 30.1% (moderate), sharing 6 top positions. There is room for both to add diversification.

Which is cheaper, QQQ or SPY?

SPY is cheaper, with an expense ratio of 0.09% versus 0.20%.

Which has the higher dividend yield?

QQQ yields 0.6% and SPY yields 1.2%, so SPY pays more income.

Should I own both QQQ and SPY?

With 30.1% overlap, owning both can be reasonable if you want to combine their different exposures.

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