# QQQ vs SPY: fees, holdings and returns compared

> QQQ vs SPY: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

QQQ holds the 100 largest non-financial companies on the Nasdaq exchange. SPY holds about 500 large US companies from every industry. QQQ leans on technology and has swung more than SPY. Over the same dates since March 1999, QQQ returned about 10.7% a year and SPY returned about 8.5% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 16, 2026. Prices through October 16, 2026.

## Key points

- SPY costs less: 0.0945% a year against 0.18%.
- QQQ started trading in March 1999. SPY started in January 1993.
- Worst drops since 1999: QQQ −83.0%, SPY −55.2%.
- Daily correlation: 0.85 (1 means they always move together).

## What is the difference between QQQ and SPY?

SPY covers the whole large-company market: tech, banks, energy, health care and more. QQQ covers only about 100 companies and has no banks or other financial firms. That makes QQQ more tied to how technology stocks do. Both are among the most traded funds in the world.

| Fact | QQQ | SPY |
| --- | --- | --- |
| Full name | Invesco QQQ Trust, Series 1 | State Street SPDR S&P 500 ETF Trust |
| Issuer | Invesco | SPDR (State Street) |
| Expense ratio | 0.18% a year | 0.0945% a year |
| Started trading | March 10, 1999 | January 22, 1993 |
| Tracks | Nasdaq-100 Index | S&P 500 Index |
| Holdings | n/a | 504 holdings as of October 15, 2026 |
| Type | US stocks, ETF | US stocks, ETF |

Fund facts checked on the [Invesco QQQ page](https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=QQQ) and the [SPDR (State Street) SPY page](https://www.ssga.com/us/en/intermediary/etfs/state-street-spdr-sp-500-etf-trust-spy).

## Is QQQ or SPY cheaper?

SPY costs less: 0.0945% a year against 0.18%. On $10,000, that is about $18 a year for QQQ and $9.45 for SPY. The fund takes its fee out of its own value a little each day, so you never get a bill.

## QQQ vs SPY performance over the same dates

Both funds are measured from March 1999 to October 2026, the dates both traded. QQQ returned about 10.7% a year and SPY returned about 8.5% a year. QQQ came out ahead over this period, which does not mean it will again.

| Measure | QQQ | SPY |
| --- | --- | --- |
| $10,000 grew to | $165,138 | $95,537 |
| Total return | 1,551% | 855.4% |
| Return per year (CAGR) | 10.7% | 8.5% |
| Worst drop from a high | −83.0% | −55.2% |
| Volatility (how much it swings) | 26.9% | 19.2% |
| Last 12 months | 18.9% | 16.8% |
| Last 3 years, per year | 25.0% | 22.0% |
| Last 5 years, per year | 14.7% | 12.8% |
| Last 10 years, per year | 20.5% | 15.4% |

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## QQQ and SPY returns by year

| Year | QQQ | SPY |
| --- | --- | --- |
| 2026 (part of the year) | 15.9% | 12.8% |
| 2025 | 20.8% | 17.7% |
| 2024 | 25.6% | 24.9% |
| 2023 | 54.9% | 26.2% |
| 2022 | −32.6% | −18.2% |
| 2021 | 27.4% | 28.7% |
| 2020 | 48.4% | 18.3% |
| 2019 | 39.0% | 31.2% |
| 2018 | −0.1% | −4.6% |
| 2017 | 32.7% | 21.7% |
| 2016 | 7.1% | 12.0% |
| 2015 | 9.4% | 1.2% |
| 2014 | 19.2% | 13.5% |
| 2013 | 36.6% | 32.3% |
| 2012 | 18.1% | 16.0% |
| 2011 | 3.5% | 1.9% |
| 2010 | 20.1% | 15.1% |
| 2009 | 54.7% | 26.4% |
| 2008 | −41.7% | −36.8% |
| 2007 | 19.0% | 5.1% |
| 2006 | 7.1% | 15.8% |
| 2005 | 1.6% | 4.8% |
| 2004 | 10.5% | 10.7% |
| 2003 | 49.7% | 28.2% |
| 2002 | −37.4% | −21.6% |
| 2001 | −33.3% | −11.8% |
| 2000 | −36.1% | −9.7% |
| 1999 (part of the year) | 79.0% | 14.9% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. QQQ's worst fall was −83.0%, from March 27, 2000 to October 9, 2002. It got back to that high on February 20, 2015.

SPY's worst fall was −55.2%, from October 9, 2007 to March 9, 2009. It got back to that high on August 16, 2012.

Their daily moves had a correlation of 0.85. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So they often move together, but not always.

## Why people choose QQQ or SPY

**QQQ.** People who want more weight in large tech and growth companies tend to pick QQQ, and accept bigger swings.

**SPY.** People who want the broad S&P 500, or trade large amounts or options, often pick SPY.

## Strategies that hold QQQ or SPY

These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.

- [Bold Asset Allocation (BAA)](https://tactfolio.com/strategies/bold-asset-allocation.md), by Wouter Keller, 2022 (holds QQQ and SPY)
- [Defensive Asset Allocation (DAA)](https://tactfolio.com/strategies/defensive-asset-allocation.md), by Wouter Keller and JW Keuning, 2018 (holds QQQ and SPY)
- [Protective Asset Allocation (PAA)](https://tactfolio.com/strategies/protective-asset-allocation.md), by Wouter Keller and JW Keuning, 2016 (holds QQQ and SPY)
- [Vigilant Asset Allocation G12 (VAA-G12)](https://tactfolio.com/strategies/vigilant-asset-allocation-g12.md), by Wouter Keller and JW Keuning, 2017 (holds QQQ and SPY)
- [Bold Asset Allocation G4 (BAA aggressive)](https://tactfolio.com/strategies/bold-asset-allocation-g4.md), by Wouter Keller, 2022 (holds QQQ and SPY)
- [Quint Switching Filtered (Lewis Glenn’s QSF)](https://tactfolio.com/strategies/quint-switching-filtered.md), by Lewis A. Glenn, 2018 (holds QQQ and SPY)
- [Lethargic Asset Allocation (Keller’s LAA)](https://tactfolio.com/strategies/lethargic-asset-allocation.md), by Wouter J. Keller, 2019 (holds QQQ and SPY)
- [Resilient Asset Allocation (Keller’s RAA)](https://tactfolio.com/strategies/resilient-asset-allocation.md), by Wouter J. Keller, 2020 (holds QQQ)
- [Pragmatic Asset Allocation (Quantpedia’s PAA)](https://tactfolio.com/strategies/pragmatic-asset-allocation.md), by Radovan Vojtko and Juliána Javorská (Quantpedia), 2024 (holds QQQ)
- [Hybrid Asset Allocation (HAA)](https://tactfolio.com/strategies/hybrid-asset-allocation.md), by Wouter Keller and JW Keuning, 2023 (holds SPY)
- [HAA Simple: Hybrid Asset Allocation with one asset](https://tactfolio.com/strategies/hybrid-asset-allocation-simple.md), by Wouter Keller and JW Keuning, 2023 (holds SPY)
- [Vigilant Asset Allocation (VAA)](https://tactfolio.com/strategies/vigilant-asset-allocation.md), by Wouter Keller and JW Keuning, 2017 (holds SPY)
- [Adaptive Asset Allocation (AAA)](https://tactfolio.com/strategies/adaptive-asset-allocation.md), by Adam Butler, Michael Philbrick, Rodrigo Gordillo, and David Varadi, 2012 (holds SPY)
- [Faber’s 10-month moving average timing model](https://tactfolio.com/strategies/faber-10-month-moving-average.md), by Mebane Faber, 2007 (holds SPY)
- [Dual Momentum: Antonacci’s Global Equities Momentum (GEM)](https://tactfolio.com/strategies/dual-momentum.md), by Gary Antonacci, 2014 (holds SPY)
- [Composite Dual Momentum](https://tactfolio.com/strategies/composite-dual-momentum.md), by Gary Antonacci, 2012 (holds SPY)
- [Global Tactical Asset Allocation (GTAA 5)](https://tactfolio.com/strategies/global-tactical-asset-allocation.md), by Mebane Faber, 2007 (holds SPY)
- [Ivy Portfolio rotation (Faber’s relative strength model)](https://tactfolio.com/strategies/ivy-portfolio-rotation.md), by Mebane Faber and Eric Richardson, 2009 (holds SPY)
- [Faber sector rotation (the three strongest US sectors)](https://tactfolio.com/strategies/faber-sector-rotation.md), by Mebane Faber, 2010 (holds SPY)
- [Trinity Portfolio (Meb Faber)](https://tactfolio.com/strategies/trinity-portfolio.md), by Mebane Faber, 2016 (holds SPY)
- [12-Month High Switch (Meb Faber)](https://tactfolio.com/strategies/12-month-high-switch.md), by Mebane Faber, 2020 (holds SPY)
- [US Cross-Asset Momentum (stock and Treasury timing)](https://tactfolio.com/strategies/cross-asset-momentum.md), by Aleksi Pitkäjärvi, Matti Suominen, and Lauri Vaittinen, 2016 (holds SPY)
- [US Risk Parity Trend-Following (The Trend is Our Friend)](https://tactfolio.com/strategies/us-risk-parity-trend-following.md), by Andrew Clare, James Seaton, Peter N. Smith, and Stephen Thomas, 2016 (holds SPY)
- [Defense First (Carlson’s defensive tactical model)](https://tactfolio.com/strategies/defense-first.md), by Thomas D. Carlson, 2025 (holds SPY)
- [HAA 60/40 (NLX Finance’s Hybrid Asset Allocation variant)](https://tactfolio.com/strategies/haa-60-40.md), by Nicolas Lequeux (NLX Finance), 2024 (holds SPY)
- [Paired Switching (quarterly SPY and TLT rotation)](https://tactfolio.com/strategies/paired-switching.md), by Akhilesh Maewal and Joel R. Bock, 2011 (holds SPY)
- [Trending Fast and Slow (volatility-switched momentum)](https://tactfolio.com/strategies/trending-fast-and-slow.md), by Eddie Cheng, Nazar Kostyuchyk, Wai Lee, Pai Liu, and Chenfei Ma, 2022 (holds SPY)
- [Accelerating Dual Momentum (ADM)](https://tactfolio.com/strategies/accelerating-dual-momentum.md), by Engineered Portfolio (Steve Hanly), 2018 (holds SPY)
- [Robust Asset Allocation Balanced (Alpha Architect RAA)](https://tactfolio.com/strategies/robust-asset-allocation-balanced.md), by Wesley Gray (Alpha Architect), 2014 (holds SPY)
- [Robust Asset Allocation Aggressive (Alpha Architect RAA)](https://tactfolio.com/strategies/robust-asset-allocation-aggressive.md), by Wesley Gray (Alpha Architect), 2014 (holds SPY)
- [Tactical Permanent Portfolio (GestaltU / ReSolve)](https://tactfolio.com/strategies/tactical-permanent-portfolio.md), by Adam Butler, Michael Philbrick, and Rodrigo Gordillo, 2012 (holds SPY)
- [Diversified Dual Momentum (Newfound Research)](https://tactfolio.com/strategies/diversified-dual-momentum.md), by Corey Hoffstein (Newfound Research), 2019 (holds SPY)
- [Three-Way Model (Ned Davis Research)](https://tactfolio.com/strategies/three-way-model.md), by Ned Davis Research, 2015 (holds SPY)
- [Kipnis Defensive Adaptive Asset Allocation (KDA)](https://tactfolio.com/strategies/kipnis-defensive-asset-allocation.md), by Ilya Kipnis, 2019 (holds SPY)
- [Ivy Portfolio (Faber and Richardson, buy and hold)](https://tactfolio.com/strategies/ivy-portfolio.md), by Mebane Faber and Eric Richardson, 2009 (holds SPY)
- [60/40 Portfolio (classic stocks and bonds)](https://tactfolio.com/strategies/60-40-portfolio.md), by Traditional balanced funds (holds SPY)
- [Leverage Rotation Strategy (UPRO above the 200-day average)](https://tactfolio.com/strategies/leverage-rotation-strategy.md), by Michael Gayed and Charles Bilello, 2016 (holds SPY)
- [Leverage Rotation Strategy 2x (LRS with SSO)](https://tactfolio.com/strategies/leverage-rotation-strategy-2x.md), by Michael Gayed and Charles Bilello, 2016 (holds SPY)
- [200-Day Moving Average Strategy (S&P 500)](https://tactfolio.com/strategies/200-day-moving-average.md), by Jeremy Siegel, 1994, Michael Gayed and Charles Bilello, 2016 (holds SPY)
- [Golden Cross Strategy (50-day and 200-day moving averages)](https://tactfolio.com/strategies/golden-cross.md), by Technical analysis tradition (holds SPY)
- [Beta Rotation Strategy (utilities vs. the market)](https://tactfolio.com/strategies/beta-rotation-strategy.md), by Charles Bilello and Michael Gayed, 2014 (holds SPY)
- [Tactical Risk Rotation (TRRS)](https://tactfolio.com/strategies/tactical-risk-rotation.md), by Michael Gayed and Charles Bilello, 2014 (holds SPY)
- [Volatility-Managed Portfolio (Moreira and Muir)](https://tactfolio.com/strategies/volatility-managed-portfolio.md), by Alan Moreira and Tyler Muir, 2017 (holds SPY)
- [Growth-Trend Timing (Philosophical Economics’ GTT)](https://tactfolio.com/strategies/growth-trend-timing.md), by Jesse Livermore (Philosophical Economics), 2016 (holds SPY)
- [Growth-Trend Timing with unemployment (GTT-UE)](https://tactfolio.com/strategies/growth-trend-timing-unemployment.md), by Jesse Livermore (Philosophical Economics), 2016 (holds SPY)
- [Growth-Trend Timing with job growth](https://tactfolio.com/strategies/growth-trend-timing-jobs.md), by Jesse Livermore (Philosophical Economics), 2016 (holds SPY)
- [Growth-Trend Timing with housing starts and income](https://tactfolio.com/strategies/growth-trend-timing-housing.md), by Jesse Livermore (Philosophical Economics), 2016 (holds SPY)
- [TrendYCMacro (Quantpedia’s market timing strategy)](https://tactfolio.com/strategies/trend-yc-macro.md), by Ladislav Ďurian and Radovan Vojtko (Quantpedia), 2023 (holds SPY)
- [Inflation Compass (Varadi’s growth and inflation model)](https://tactfolio.com/strategies/inflation-compass.md), by David Varadi, 2026 (holds SPY)

## Other funds like QQQ and SPY

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [QQQ alternatives](https://tactfolio.com/alternatives/QQQ.md) and [SPY alternatives](https://tactfolio.com/alternatives/SPY.md).

## Test a mix of QQQ and SPY

Open the [builder](https://tactfolio.com/builder), add QQQ and SPY, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for [QQQ](https://tactfolio.com/etf/QQQ.md) and [SPY](https://tactfolio.com/etf/SPY.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## The details

Both funds use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund's first day, so neither gets a head start. Correlation uses daily returns over the same days. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [S&P 500 index funds](https://tactfolio.com/learn/sp500-index-funds): Compare the biggest S&P 500 index funds, ETFs and mutual funds, by yearly fee, see how much fees cost over 30 years, and learn how to buy one.
- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.

## Common questions

### Why has QQQ often done better than SPY?

Large tech companies grew fast over much of the last two decades, and QQQ holds more of them. In years when tech fell hard, such as 2022, QQQ did worse. Past leaders do not always stay ahead.

### Which holds more companies, QQQ or SPY?

SPY holds about 500 companies. QQQ holds about 100.

### Which is cheaper, QQQ or SPY?

SPY costs less: 0.0945% a year against 0.18%. Fees come from each issuer and were checked on October 16, 2026.

### Which did better, QQQ or SPY?

From March 1999 to October 2026, QQQ returned about 10.7% a year and SPY returned about 8.5% a year, with dividends reinvested. Their worst drops were −83.0% and −55.2%. Past returns do not tell you what comes next.

## Sources

- [Invesco: Invesco QQQ Trust, Series 1 fund page](https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=QQQ)
- [SPDR (State Street): State Street SPDR S&P 500 ETF Trust fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-spdr-sp-500-etf-trust-spy)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.