SPY vs QQQ: ETF performance showdown
Published: April 13, 2025 | By: WhatIfInvested.com Team
When it comes to passive investing in the U.S. stock market, two ETFs dominate the landscape: SPY and QQQ. SPY tracks the S&P 500 — a diversified index of the 500 largest U.S. companies — while QQQ focuses on the Nasdaq-100, emphasizing growth and technology stocks. But which one has delivered better returns, adjusted risk, and long-term reliability?
Performance overview: SPY vs QQQ
Between 2010 and 2024, QQQ has generally outperformed SPY in raw returns, thanks to its heavy exposure to Big Tech like Apple, Microsoft, Nvidia, and Meta. However, this outperformance came with higher volatility.
Historical return comparison (2010–2024)
- QQQ: +750% (approx.)
- SPY: +370% (approx.)
QQQ doubled SPY’s return — but also experienced deeper drawdowns during corrections.
Volatility and drawdowns
QQQ is more sensitive to interest rates and macro shocks due to its concentration in tech. SPY, being broader, offers more defensive exposure (financials, healthcare, energy).
Risk-adjusted returns
While QQQ has a higher Sharpe ratio during bull markets, SPY shows better downside protection and smoother ride — particularly relevant for retirees or conservative investors.
Sector exposure breakdown
SPY: Tech (~25%), Health (~15%), Financials (~13%), Energy (~5%)
QQQ: Tech (~50%), Communication (~18%), Consumer Discretionary (~15%)
Fees and liquidity
- SPY: 0.09% expense ratio
- QQQ: 0.20% expense ratio
Both are extremely liquid with tight spreads, but SPY has a cost advantage.
DCA comparison: $100/month since 2015
- SPY: ~$35,000 from $12,000 invested
- QQQ: ~$48,000 from $12,000 invested
Ideal investor profile
If you prefer aggressive growth and don’t mind volatility: QQQ.
If you want balance, dividends, and stability: SPY.
Try it yourself
Use our ETF simulator to compare SPY, QQQ, and other top-performing assets based on real historical data.
Expert opinion: which one wins?
There’s no one-size-fits-all answer. QQQ has crushed it over the past decade — but the future may favor diversification. Many advisors suggest owning both for optimal exposure.
FAQ
Is QQQ better than SPY long term?
QQQ has outperformed over the last 10–15 years, but its future depends heavily on tech performance.
Can I hold both SPY and QQQ?
Yes, many investors combine both to balance growth with stability.
Is QQQ riskier than SPY?
Yes. QQQ is more concentrated and volatile, while SPY is broader and more stable.
Compare more ETFs
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