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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 21, 2026

Invesco
ETFs254
Total AUM$964B

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

Invesco is a major ETF provider known for offering a comprehensive lineup spanning multiple asset classes and investment strategies. The company specializes in income-focused products including dividend, covered call, and bond strategies, while also maintaining broad exposure across equity, factor-based, thematic, and ESG investing themes. Invesco's portfolio ranges from index-tracking funds to alternatives and specialized offerings like digital assets and BulletShares, making it one of the more expansive ETF families available to investors.

See our curated list of related YouTube videos on QQQ.

See all Invesco ETFs
State Street
ETFs178
Total AUM$2025B

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

QQQSPY
Full nameInvesco QQQ TrustSPDR S&P 500 ETF Trust
IssuerInvescoState Street
Last Close$696.06 as of July 21, 2026$742.09 as of July 21, 2026
Distribution yield0.46%1.03%
Distribution Safety Score™ 95100
Expense ratio0.18%0.10%
AUM$466B$785B
Distribution frequencyQuarterlyQuarterly
Underlying indexNasdaq-100 IndexS&P 500 Index
ObjectiveTrack the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.Track the S&P 500 Index before expenses.
Asset classEquityEquity
Inception date03/10/199901/22/1993
Beta1.241.0
Last dividend$0.7941$1.9035
Ex-dividend date12/21/202609/18/2026

Bottom lineChoose QQQ if you want a growth tilt and can accept bigger swings for higher upside. Choose SPY if you want higher current income (1.03% vs 0.46% for QQQ).

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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 23.97% total return against 19.33%. The lead holds up over 10 years too: QQQ has compounded at 20.88% a year, against 14.95% 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.

SymbolYTD1Y3Y5Y10YSince Mar 1999Volatility Sharpe Sortino Max drawdown
QQQ13.80%23.97%23.41%15.12%20.88%10.70%20.2%0.821.18-22.8%
SPY9.20%19.33%19.43%13.31%14.95%8.48%15.2%0.881.27-18.8%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 20, 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 1.03% vs 0.46% 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 ($785B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $3.83/month, while SPY would produce $8.58/month, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.46%
SPY yield1.03%
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 1.24 for QQQ and 1.0 for SPY, indicating SPY is less volatile relative to the market.

QQQ beta1.24
SPY beta1.0

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $466B in assets. SPY is managed by State Street (launched 01/22/1993) with $785B in assets.

QQQ AUM$466B
SPY AUM$785B
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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 — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

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 $3.83 per month ($46.00 annually). The same in SPY would produce about $8.58 per month ($103.00 annually).

Which has performed better historically, QQQ or SPY?

QQQ has outpaced SPY over the trailing twelve months, posting a 23.97% total return against 19.33%. The lead holds up over 10 years too: QQQ has compounded at 20.88% a year, against 14.95% 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. Past performance does not guarantee future results.

More comparisons to explore

QQQ vs SPY — at a glance

Generated July 2026 from current fund data.

Overview

QQQ and SPY are both large-cap U.S. equity ETFs tracking broad market indexes, but they differ fundamentally in composition and volatility. QQQ tracks the Nasdaq-100—a 100-stock index of the largest non-financial Nasdaq companies, heavily weighted toward technology and growth sectors. SPY tracks the S&P 500, a 500-stock index spanning all sectors and market caps, representing the broader U.S. stock market. The key distinction: QQQ offers concentrated growth exposure with higher volatility, while SPY delivers diversified large-cap blend exposure.

How they differ

The biggest difference is index composition. QQQ excludes financial companies and limits itself to 100 stocks, tilting the portfolio heavily toward technology, consumer discretionary, and communication services. SPY's 500-stock mandate spreads exposure across all sectors and includes financials, healthcare, industrials, and energy—making it a more representative market proxy.

Volatility comes second. QQQ's beta of 1.24 versus SPY's 1.0 reflects this: QQQ amplifies market moves by roughly 24% compared to the broad market. That higher beta correlates with growth-stock sensitivity; when large-cap tech rallies, QQQ outpaces SPY, and vice versa during tech downturns.

Yield and fees round out the comparison. SPY distributes 1.01% annually versus QQQ's 0.44%, reflecting the S&P 500's higher dividend-paying exposure in financials and utilities. SPY's expense ratio is 0.10% versus QQQ's 0.18%—a modest gap, but meaningful over decades given SPY's $783B in assets versus QQQ's $481B.

Who each is best for

QQQ: Fits investors seeking concentrated exposure to large-cap growth and technology trends, comfortable with above-market volatility in exchange for potential outperformance in growth-led cycles.

SPY: Fits investors building a core holding in broad U.S. large-cap equities, preferring sector diversification and lower volatility, and valuing the combination of lower fees and higher dividend yield.

Key risks to know

  • Sector concentration in QQQ. The Nasdaq-100's exclusion of financials and concentration in technology means QQQ's performance is highly dependent on the health and valuations of a narrow set of mega-cap growth companies; diversification-conscious investors may find this concentration risk material.
  • Growth-cycle sensitivity. QQQ's 1.24 beta means it falls harder than SPY when markets rotate away from growth stocks or during rising-rate environments that pressure long-duration assets like technology.
  • Lower income in QQQ. The 0.44% distribution yield reflects lower dividend-paying exposure; investors relying on regular income from the fund receive less cash relative to SPY.
  • Fee drag over long horizons. Though the 0.08% difference between QQQ's 0.18% and SPY's 0.10% expense ratio may seem small, compounded over 20+ years it meaningfully impacts cumulative returns, especially in low-growth periods.

Bottom line

If you're building a core portfolio and want broad sector exposure with lower volatility and higher current yield, SPY's diversification and lower cost stand out. If you believe large-cap growth will lead and can tolerate sharper swings, QQQ offers that concentrated bet with higher beta. Past performance doesn't predict future results; your choice hinges on your sector views and volatility tolerance.

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

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