ETF Comparison

QQQ vs SPY: Which Is the Better Pick in 2026?

A head-to-head comparison of Invesco QQQ Trust and SPDR S&P 500 ETF Trust covering yield, cost, risk, and income potential.

Data updated July 4, 2026

Invesco

ETFs255

Total AUM$971B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Invesco is a major player in the ETF space known for offering a broad, diversified lineup of 71 funds spanning multiple investment themes and strategies. Their portfolio spans income-focused funds, factor-based equity strategies, commodity exposure, digital assets, ESG investing, and the popular Invesco QQQ family tracking the Nasdaq-100, serving both income-seeking and growth-oriented investors. The issuer is particularly recognized for specialized offerings like BulletShares (laddered bond funds), sector rotation strategies, and thematic investing options, making it a comprehensive choice for investors seeking varied exposures beyond traditional index funds.

See our curated list of related YouTube videos on QQQ.

See all Invesco ETFs

State Street

ETFs182

Total AUM$2107B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on SPY.

See all State Street ETFs

Side-by-side snapshot

	QQQ	SPY
Full name	Invesco QQQ Trust	SPDR S&P 500 ETF Trust
Issuer	Invesco	State Street
Last Close	$712.60 as of July 4, 2026	$744.78 as of July 4, 2026
Distribution yield	0.45%	1.02%
Distribution Safety Score	95	100
Expense ratio	0.18%	0.10%
AUM	$481B	$783B
Distribution frequency	Quarterly	Quarterly
Underlying index	Nasdaq-100 Index	S&P 500 Index
Objective	Track the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.	Track the S&P 500 Index before expenses.
Asset class	Equity	Equity
Inception date	03/10/1999	01/22/1993
Beta	1.23	1.0
Last dividend	$0.7941	$1.9035
Ex-dividend date	12/21/2026	09/18/2026

Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Want to go deeper?

Add these ETFs to a sample portfolio and forecast your dividend income over 5+ years — no signup required.

Build a sample portfolio Forecast income

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

QQQ has outpaced SPY over the trailing twelve months, posting a 30.76% total return against 21.61%. The lead holds up over 10 years too: QQQ has compounded at 21.60% a year, against 15.30% for SPY. SPY has been the steadier holding, though — annualized volatility of 15.2% against 20.2% for QQQ. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Mar 1999	Volatility	Sharpe	Sortino	Max drawdown
QQQ	16.37%	30.76%	25.08%	15.64%	21.60%	10.81%	20.2%	0.89	1.27	-22.8%
SPY	9.32%	21.61%	20.24%	13.05%	15.30%	8.50%	15.2%	0.92	1.33	-18.8%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Mar 1999” measures every fund from March 10, 1999 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

QQQ (Invesco QQQ Trust) and SPY (SPDR S&P 500 ETF Trust) are both quarterly-pay dividend ETFs, but they take different approaches.

SPY offers the higher yield at 1.02% vs 0.45% for QQQ. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SPY is cheaper with an expense ratio of 0.10% compared to 0.18%.

They track different benchmarks: QQQ is linked to Nasdaq-100 Index while SPY tracks S&P 500 Index, which means their performance drivers differ.

SPY is the larger fund by assets ($783B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $3.75/month, while SPY would produce $8.50/month, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.45%

SPY yield1.02%

Monthly diff on $10K$4.75

Cost & efficiency

Over 10 years on $10,000, QQQ would cost approximately $180 in fees vs $100 for SPY (simplified, not compounded). The $80.00 difference may be offset by yield or performance.

QQQ ER0.18%

SPY ER0.10%

Strategy & risk

QQQ tracks Nasdaq-100 Index with a growth approach, while SPY tracks S&P 500 Index with a large cap approach. Beta is 1.23 for QQQ and 1.0 for SPY, indicating SPY is less volatile relative to the market.

QQQ beta1.23

SPY beta1.0

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $481B in assets. SPY is managed by State Street (launched 01/22/1993) with $783B in assets.

QQQ AUM$481B

SPY AUM$783B

Ready to act?

Open in Comparator Model in portfolio See pricing

Frequently asked questions

Is QQQ or SPY better for dividend income?

It depends on your goals. SPY currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between QQQ and SPY?

QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a growth approach, while SPY (SPDR S&P 500 ETF Trust) tracks S&P 500 Index with a large cap approach. They are issued by Invesco and State Street respectively.

Can I hold both QQQ and SPY?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, QQQ or SPY?

QQQ has an expense ratio of 0.18% while SPY charges 0.10%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in QQQ vs SPY generate?

At current rates, $10,000 in QQQ would generate roughly $3.75 per month ($45.00 annually). The same in SPY would produce about $8.50 per month ($102.00 annually).

Which has performed better historically, QQQ or SPY?

More comparisons to explore

People also compare QQQ with

People also compare SPY with

Popular comparisons

QQQ vs SPY — at a glance

Generated June 2026 from current fund data.

Overview

QQQ and SPY are both large-cap U.S. equity ETFs that track broad market indexes, but they differ fundamentally in composition and tilt. QQQ tracks the Nasdaq-100, which excludes financials and skews heavily toward technology and growth sectors; SPY tracks the S&P 500, a 500-stock index weighted across all sectors including financials, healthcare, industrials, and consumer goods. The key distinction is that QQQ is a concentrated growth play, while SPY is a diversified blend.

How they differ

The biggest difference is sector composition and concentration. QQQ's Nasdaq-100 excludes financial stocks and is dominated by technology, communication, and consumer discretionary names—its top 10 holdings typically represent about 40–50% of assets. SPY's S&P 500 includes all major sectors and is more evenly distributed; no sector dominates to the same degree.

Yield and volatility follow directly from that tilt. SPY yields 1.04% versus QQQ's 0.45%, partly because financial stocks (a large S&P 500 weight) tend to pay higher dividends. QQQ carries a beta of 1.23 compared to SPY's 1.0, meaning QQQ swings harder in both directions—it amplifies both rallies and declines. Over a long bull market in technology, QQQ's higher volatility drives higher returns; in a downturn or rotation away from growth, it underperforms.

Cost and scale differ slightly. SPY has $783B in assets under management versus QQQ's $481B, and SPY's expense ratio is 0.10% versus QQQ's 0.18%—a modest but meaningful gap over decades. Both are highly liquid; SPY's longer track record (inception January 1993 vs. March 1999) also provides longer historical data for backtesting.

Who each is best for

QQQ: Investors seeking concentrated exposure to large-cap technology and growth stocks who can tolerate higher volatility and are comfortable with lower dividend income in exchange for potential capital appreciation in secular growth trends.

SPY: Investors building a broad, diversified core equity holding who prefer stability across economic cycles, benefit from higher dividend yield, and want minimal tracking error and lowest possible fees in a single holding.

Key risks to know

Sector concentration in QQQ. Heavy weighting to technology means QQQ's performance hinges on the earnings cycle and sentiment in a single sector. A prolonged tech downturn or regulatory headwind can underperform the broader market for years.

Higher volatility amplification. QQQ's beta of 1.23 magnifies drawdowns during market corrections. Investors buying near market peaks may face steeper losses; those reinvesting dividends during downturns face reinvestment timing risk.

Sector rotation risk. If market leadership rotates away from technology and growth toward value, financials, or industrials—sectors better represented in SPY—QQQ will lag. This happened notably in 2022 and parts of 2023.

Financials exclusion in QQQ. By design, QQQ excludes the entire financial sector. While this has benefited investors during tech booms, it leaves no direct exposure to bank earnings, insurance, or wealth-management cycles that historically drive broad market returns.

Bottom line

If you prioritize broad diversification and income yield with minimal volatility, SPY's blend and lower expense ratio stand out. If you're comfortable with higher volatility and want concentrated exposure to secular growth trends in technology, QQQ's tilt and longer-term returns during tech booms may suit your time horizon better. Keep in mind that past performance doesn't predict future results; sector leadership and economic conditions shift over time.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.