Dividend comparison
QQQ vs SPY: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Invesco QQQ Trust, Series 1 and State Street SPDR S&P 500 ETF, side by side. Updated October 21, 2026.
- Fees. SPY is cheaper at 0.09% a year versus 0.18% for QQQ. On $10,000 that is $9 a year less in fees.
- Income. SPY pays more income, yielding 0.98% over the last twelve months versus 0.53% for QQQ. That is about $45 more a year on $10,000. QQQ pays annual, SPY pays quarterly.
- Performance. Over the last 5 years, QQQ returned 97.0% versus 81.3% for SPY, with dividends reinvested. $10,000 would have grown to $19,698 in QQQ and $18,129 in SPY.
- Risk. QQQ has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -35.1%, against -24.5% for SPY.
- Diversification. SPY holds 504 positions and QQQ holds 102. The ten largest positions make up 47.2% of QQQ and 38.7% of SPY.
- Overlap. At least 50% of the two portfolios overlap by weight, across 36 shared holdings.
- Dividend growth. QQQ grew its yearly payout 13.3% a year over the last 4 years, versus 6.4% for SPY.
Bottom line: QQQ fits better if you care most about stronger 5-year returns and faster dividend growth. SPY fits better if you care most about lower fees, more income today, smaller drawdowns and broader diversification.
| Metric | QQQ Invesco QQQ Trust, Series 1 | SPY State Street SPDR S&P 500 ETF |
|---|---|---|
| Dividend yield (TTM) | 0.53% | 0.98% |
| Dividend / share (TTM) | $3.79 | $7.53 |
| Payout frequency | Annual | Quarterly |
| Last dividend | $0.7514 on Oct 8, 2026 | $1.9035 on Jul 31, 2026 |
| Ex-dividend date | Dec 21, 2026 | Sep 18, 2026 |
| Next payment | $0.7941 on Dec 28, 2026 | $1.8888 on Oct 30, 2026 |
| Dividend growth (CAGR) | 13.3% over 4 yrs | 6.4% over 4 yrs |
| Price | $717.63 | $769.05 |
| Dividend growth streak | — | 16 years |
| Beta | 1.23 | 1.01 |
| Max drawdown (5Y) | -35.1% | -24.5% |
| Market cap | $479.05B | $813.99B |
| Exchange | NASDAQ | AMEX |
| Expense ratio | 0.18% | 0.09% |
| Assets under management | $487.46B | $816.57B |
| Number of holdings | 102 | 504 |
| Top 10 concentration | 47.2% | 38.7% |
QQQ
$4.40/mo
$53 /yr at 0.53% yield
SPY
$8.15/mo
$98 /yr at 0.98% yield
| Year | QQQ | SPY |
|---|---|---|
| 2025 | $2.7949 | $7.2533 |
| 2024 | $3.0623 | $7.0056 |
| 2023 | $2.3200 | $6.5091 |
| 2022 | $2.1351 | $6.1723 |
| 2021 | $1.6968 | $5.6618 |
Current income is low and outside your control, so these need pairing with something else if the portfolio has to produce cash today.
What QQQ vs SPY actually do
The index is modified market-cap weighted and excludes financials by rule, which is why it lands so heavily in technology, communication services and consumer discretionary names. In December 2025 the fund converted from a unit investment trust to a conventional open-end fund and cut its fee, so it can now reinvest income and lend securities like its peers. It remains the most liquid Nasdaq-100 vehicle by a wide margin and the reference asset for a large share of the options-income products in this category.
Suits investors who want concentrated large-cap growth exposure and anyone who needs deep options liquidity. Dividends are incidental, so it does not answer an income mandate on its own.
Growth-tilted core, concentrated
It holds the same 500 companies as its rivals, but it is structured as a unit investment trust rather than an open-end fund, an older wrapper that must hold every constituent and cannot put dividends back to work inside the fund before the quarterly payment date. That leaves a small cash drag and it carries a higher expense ratio than the newer S&P 500 trackers, around three times VOO's. What it buys instead is unmatched liquidity and by far the deepest options market of any S&P 500 fund.
Suits traders, options sellers and anyone who needs to move size with tight spreads. For a long-term buy-and-hold position the structural drag and higher fee work against it compared with the newer alternatives.
Core holding, trading vehicle
| Period | QQQ | SPY |
|---|---|---|
| 1 month | -0.43% | 0.97% |
| 3 months | 3.10% | 3.63% |
| Year to date | 17.09% | 13.37% |
| 1 year | 17.78% | 15.51% |
| 3 years | 105.61% | 88.86% |
| 5 years | 96.98% | 81.29% |
- QQQ
- SPY
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
- QQQ
- SPY
| Largest shared holdings | QQQ weight | SPY weight |
|---|---|---|
| NVDANVIDIA Corp | 8.17% | 7.93% |
| AAPLApple Inc | 7.82% | 7.55% |
| MSFTMicrosoft Corp | 6.19% | 5.98% |
| AMZNAmazon.com Inc | 4.42% | 3.89% |
| GOOGLAlphabet Inc | 3.15% | 3.05% |
| GOOGAlphabet Inc | 2.94% | 2.44% |
| AVGOBroadcom Inc | 2.49% | 2.40% |
| METAMeta Platforms Inc | 3.28% | 2.35% |
| TSLATesla Inc | 3.02% | 1.57% |
| MUMicron Technology Inc | 4.41% | 1.54% |
QQQ102 holdings total
Quick verdict
QQQ fits better if you care most about stronger 5-year returns and faster dividend growth. SPY fits better if you care most about lower fees, more income today, smaller drawdowns and broader diversification. Model the holding inside your real portfolio before deciding.
Frequently asked questions
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.