SPY vs. QQQ — ETF comparison tool (2024)

FAQs

Which ETF is better, SPY or QQQ? ›

In the past year, QQQ returned a total of 34.94%, which is significantly higher than SPY's 28.05% return. Over the past 10 years, QQQ has had annualized average returns of 18.75% , compared to 12.78% for SPY. These numbers are adjusted for stock splits and include dividends.

The primary differences between trading options on QQQ vs SPY revolve around liquidity, volatility, and option premiums. QQQ options tend to have higher volatility due to the tech sector's rapid price movements, leading to higher premiums compared to SPY options.

And the QQQ is cheap, only charging 0.2%. There's an even cheaper version, the Invesco Nasdaq 100 ETF (QQQM), which charges just 0.15%. Compare that to the 0.75% charged by ARK Innovation (ARKK). And ARK Innovation gained just 2.6% annually in the past 10 years.

The QQQ ETF offers investors big rewards during bull markets, with the potential for long-term growth, ready liquidity, and low fees. QQQ usually declines more in bear markets, has high sector risk, often appears overvalued, and holds no small-cap stocks.

QQQ Performance. Invesco QQQ — the ETF that tracks the Nasdaq-100 index — has beaten the S&P 500 eight out of the last 10 years as of March 31, 2024.

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Here are the results of our fund overlap screen between SPY and QQQ: Notice that 85% of the holdings in QQQ are also held in SPY.

Is SPDR S&P 500 ETF ETF A Buy? Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for SPY ETF to perform well in the short-term.

QQQ - Volatility Comparison. The current volatility for SPDR S&P 500 ETF (SPY) is 2.41%, while Invesco QQQ (QQQ) has a volatility of 3.40%. This indicates that SPY experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure.

S&P 500 ETFs, such as SPY and VOO, can play a critical role in an investor's strategy due to their inherent ability to provide broad market exposure, diversification and relatively low cost.

One of the few differences between these two funds is their expense ratio. The newer QQQM has a lower expense ratio by 0.05%. QQQM has an expense ratio of 0.15% compared to QQQ expense ratio of 0.20%. QQQM is a better option if you want to pay the lowest fees possible since its expense ratio is 25% smaller than QQQ.

Is VOO better than SPY? ›

If you are a cost-conscious investor, the VOO, IVV, and SPLG might make a more attractive option compared to SPY with their lower expense ratios. Conversely, you might appreciate the higher liquidity of SPY if you're an active or institutional trader. Ultimately, VOO, SPY, IVV, and SPLG are all great options.

Average Return

In the past year, QQQ returned a total of 35.23%, which is significantly higher than VOO's 28.33% return. Over the past 10 years, QQQ has had annualized average returns of 18.77% , compared to 12.87% for VOO. These numbers are adjusted for stock splits and include dividends.

Invesco QQQ stock price stood at $481.61

According to the latest long-term forecast, Invesco QQQ price will hit $600 by the end of 2025 and then $700 by the middle of 2028. Invesco QQQ will rise to $900 within the year of 2029, $1000 in 2031, $1100 in 2033 and $1200 in 2035.

QQQ experiences smaller price fluctuations and is considered to be less risky than TQQQ. Therefore, QQQ is best suited for long-term buy-and-hold investors, while TQQQ is better for active traders.

The Nasdaq-100® and S&P 500 stand as two of the most prominent equity indexes in the United States. With its considerable emphasis on innovative sectors like Technology, Consumer Discretionary, and Health Care, the Nasdaq-100 has consistently outperformed the S&P 500 over the past 16 years (12/31/2007 – 3/28/2024).

Invesco QQQ Trust

Despite its popularity, QQQ is very rarely the best choice for any investor. If you want a quick, easy way to invest in the high-flying tech stocks found in the Nasdaq-100 index, one of the most popular ETFs you could buy is the Invesco QQQ Trust ETF (QQQ 0.18%).