SPY vs. QQQ: Tech-Heavy QQQ Leads 1-Year Gains as SPY Stays Cheaper and Broader

The choice comes down to growth with bigger swings versus lower-cost diversification with steadier income.

Overview

QQQ has returned 44.9% over the past year compared with 35.0% for SPY, reflecting a tech-led rally.
SPY charges a 0.09% expense ratio and pays about a 1.1% dividend yield, while QQQ costs 0.18% and yields about 0.5%.
QQQ concentrates in technology and communication services with just over 100 holdings, whereas SPY spreads risk across more than 500 companies.
Risk profiles differ, with QQQ posting a five-year beta of 1.11 and a deeper max drawdown of 35.12% versus SPY at 1.00 and 24.50%.
Both ETFs are huge and heavily influenced by the same top stocks, with Nvidia, Apple, and Microsoft leading holdings and assets near $652 billion for SPY and $373 billion for QQQ.