QQQ vs SPY: fees, holdings and returns

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. Fund facts checked October 16, 2026. Prices through October 16, 2026.

QQQ

Yearly fee
0.18%
about $18 on $10,000
Return per year
10.7%
since March 1999
Worst drop
−83.0%
since 1999
Started trading
Mar 1999
Invesco

SPY

Yearly fee
0.0945%
about $9.45 on $10,000
Return per year
8.5%
since March 1999
Worst drop
−55.2%
since 1999
Started trading
Jan 1993
SPDR (State Street)

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.

FactQQQSPY
Full nameInvesco QQQ Trust, Series 1State Street SPDR S&P 500 ETF Trust
IssuerInvescoSPDR (State Street)
Expense ratio0.18% a year0.0945% a year
Started tradingMarch 10, 1999January 22, 1993
TracksNasdaq-100 IndexS&P 500 Index
Holdingsn/a504 holdings as of October 15, 2026
TypeUS stocks, ETFUS stocks, ETF

Fund facts checked on the Invesco QQQ page and the SPDR (State Street) SPY page.

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#

$5k$10k$20k$50k$100k2000200420082012201620202024
QQQSPYGrowth of $10,000, log scale, with dividends reinvested. Past results do not tell you what happens next.

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.

MeasureQQQSPY
$10,000 grew to$165,138$95,537
Total return1,551%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 months18.9%16.8%
Last 3 years, per year25.0%22.0%
Last 5 years, per year14.7%12.8%
Last 10 years, per year20.5%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#

YearQQQSPY
2026 (part of the year)15.9%12.8%
202520.8%17.7%
202425.6%24.9%
202354.9%26.2%
2022−32.6%−18.2%
202127.4%28.7%
202048.4%18.3%
201939.0%31.2%
2018−0.1%−4.6%
201732.7%21.7%
20167.1%12.0%
20159.4%1.2%
201419.2%13.5%
201336.6%32.3%
201218.1%16.0%
20113.5%1.9%
201020.1%15.1%
200954.7%26.4%
2008−41.7%−36.8%
200719.0%5.1%
20067.1%15.8%
20051.6%4.8%
200410.5%10.7%
200349.7%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.

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 and SPY alternatives.

Test a mix of QQQ and SPY#

Open the 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 and SPY, or see more ETF comparisons.

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 for more on these measures.

Research and test it

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#