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ETF Comparison

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

A head-to-head comparison of Invesco NASDAQ 100 ETF and SPDR S&P 500 ETF Trust covering yield, cost, risk, and income potential.

Data updated September 18, 2026

Best for

  • QQQMInvestors who want Nasdaq-100 exposure and can accept a more concentrated book.
  • SPYInvestors who want broader S&P 500 exposure and lower measured market sensitivity.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

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

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings.

QQQM has outpaced SPY over the trailing twelve months, posting a 22.86% total return against 17.12%. The lead holds up over 5 years too: QQQM has compounded at 14.80% a year, against 13.03% for SPY. SPY has been the steadier holding, though — annualized volatility of 15.3% against 20.2% for QQQM. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5YSince Oct 2020Volatility Sharpe Sortino Max drawdown
QQQM17.91%22.86%25.57%14.80%17.04%20.2%0.911.31-22.7%
SPY12.36%17.12%21.19%13.03%15.57%15.3%0.971.41-18.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 18, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Oct 2020” measures every fund from October 13, 2020 — the start of shared available history — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricQQQMSPY
Full nameInvesco NASDAQ 100 ETFSPDR S&P 500 ETF Trust
IssuerInvescoState Street
Underlying indexNASDAQ-100 IndexS&P 500 Index
Last Close$296.91 as of September 18, 2026$761.69 as of September 18, 2026
Distribution rate0.47%0.99%
Distribution Safety Score™ 97100
Safety-Adjusted Yield 0.46%0.99%
Expense ratio0.15%0.0945%
AUM$105B$783B
Distribution frequencyQuarterlyQuarterly
ObjectiveTrack the NASDAQ-100 Index with a lower expense ratio alternative to QQQ.Track the S&P 500 Index before expenses.
Asset classEquityEquity
Inception date10/13/202001/22/1993
Beta1.181.0
Last dividend$0.352$1.8888
Ex-dividend date06/22/202609/18/2026

Bottom lineChoose QQQM if you want Nasdaq-100 exposure and can accept a more concentrated book. Choose SPY if you want broader S&P 500 exposure and lower measured market sensitivity.

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Income calculator

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

Invesco
ETFs246
Total AUM$980B

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 QQQM.

See all Invesco ETFs
State Street
ETFs179
Total AUM$2092B

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

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Quick verdict

QQQM (Invesco NASDAQ 100 ETF) 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 0.99% vs 0.47% for QQQM. 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 0.0945% compared to 0.15%.

They have different reference exposures: QQQM is linked to NASDAQ-100 Index while SPY is linked to S&P 500 Index, which means their performance drivers differ.

SPY is the larger fund by assets ($783B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose QQQM

Invesco NASDAQ 100 ETF

  • Want Nasdaq-100 exposure — fewer names, heavier technology weight, and typically a higher current distribution.
  • Want a growth tilt and can accept larger swings for more upside.

Choose SPY

SPDR S&P 500 ETF Trust

  • Want broader S&P 500 exposure — more sectors, less mega-cap concentration, and typically lower beta.
  • Want higher current income — SPY yields 0.99% vs 0.47% for QQQM.
  • Want simple, diversified core exposure as a portfolio building block.
  • Want to keep costs low — a 0.0945% expense ratio vs 0.15% for QQQM.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, QQQM would generate roughly $3.92/month, while SPY would produce $8.25/month, at current distribution rates. Both pay quarterly distributions.

QQQM yield0.47%
SPY yield0.99%
Monthly diff on $10K$4.33

Cost & efficiency

Over 10 years on $10,000, QQQM would cost approximately $150 in fees vs $95 for SPY (simplified, not compounded). The $55.50 difference may be offset by yield or performance.

QQQM ER0.15%
SPY ER0.0945%

Strategy & risk

QQQM tracks NASDAQ-100 Index with a growth approach, while SPY tracks S&P 500 Index with a large cap approach. Beta is 1.18 for QQQM and 1.0 for SPY, making SPY the less volatile of the two by this measure.

QQQM beta1.18
SPY beta1.0

Fund details

QQQM is managed by Invesco (launched 10/13/2020) with $105B in assets. SPY is managed by State Street (launched 01/22/1993) with $783B in assets.

QQQM AUM$105B
SPY AUM$783B
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Frequently asked questions

What is the current distribution rate for QQQM and SPY?

QQQM currently distributes 0.47% and SPY 0.99%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is QQQM 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 QQQM and SPY?

QQQM (Invesco NASDAQ 100 ETF) 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 QQQM 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.

Is QQQM or SPY safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SPY scores 100, QQQM scores 97, so SPY's payout currently looks the more resilient of the two. SPY has also shown lower price volatility (beta 1.00 vs 1.18 for QQQM). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, QQQM or SPY?

QQQM has an expense ratio of 0.15% while SPY charges 0.0945%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in QQQM would generate roughly $3.92 per month ($47.00 annually). The same in SPY would produce about $8.25 per month ($99.00 annually).

Which has performed better historically, QQQM or SPY?

QQQM has outpaced SPY over the trailing twelve months, posting a 22.86% total return against 17.12%. The lead holds up over 5 years too: QQQM has compounded at 14.80% a year, against 13.03% for SPY. SPY has been the steadier holding, though — annualized volatility of 15.3% against 20.2% for QQQM. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

QQQM vs SPY — at a glance

Generated September 19, 2026.

Overview

QQQM and SPY are both large-cap equity ETFs tracking broad U.S. indexes, but they differ fundamentally in composition and volatility. QQQM tracks the NASDAQ-100—a tech-heavy index of 100 large-cap nonfinancial companies—while SPY tracks the S&P 500, which includes 500 companies across all sectors and includes financials. The result is that QQQM offers concentrated growth exposure with higher beta; SPY offers diversified market exposure closer to the overall U.S. equity market.

How they differ

The core difference is strategy: QQQM isolates technology and growth stocks, while SPY holds the broad market. QQQM's beta of 1.18 means it typically swings 18% harder than the market in either direction, whereas SPY's beta of 1.0 moves in line with the broader market. On income, SPY offers a 0.99% distribution rate against QQQM's 0.47%, reflecting the NASDAQ-100's lighter dividend-paying profile and the S&P 500's larger financials and utilities weighting.

Who each is best for

QQQM: Fits investors with a long time horizon and higher risk tolerance who want concentrated exposure to large-cap technology, software, and growth companies, and who accept meaningfully higher volatility in exchange for potential outperformance in prolonged bull markets for that sector.

SPY: Fits investors seeking broad diversification across the 500 largest U.S. companies, including financials, healthcare, industrials, and consumer stocks, regardless of market cycle or tech sector direction, and who value simplicity and liquidity above sector tilting.

Key risks to know

  • Sector concentration: QQQM is heavily weighted to technology and growth stocks, making it vulnerable to sector-specific downturns (interest-rate sensitivity, competition, regulation) in ways that SPY's broader allocation is not.
  • Volatility asymmetry: QQQM's 1.18 beta means drawdowns during equity bear markets are likely to be significantly deeper than SPY's, which tracks the broader market at 1.0.
  • Multiple compression risk: QQQM's constituent companies—especially mega-cap tech names—trade at elevated valuations relative to the broader market, creating risk that compression in price-to-earnings multiples could underperform even if earnings growth continues.
  • Overlap in top holdings: Both funds hold mega-cap tech names (Apple, Microsoft, Nvidia, Tesla, and others), so holdings overlap meaningfully, making them imperfect diversification if held together.

Bottom line

If you prioritize growth exposure and can tolerate higher volatility, QQQM's focused NASDAQ-100 tilt may appeal; if you prefer broad diversification across sectors and less dramatic swings, SPY's S&P 500 exposure at a slightly lower cost is the clearer fit. Both have rock-bottom fees and strong liquidity, so the choice hinges on whether you want concentrated tech exposure or balanced market exposure. Past performance does not predict future results.

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

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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