QQQ vs SDY
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Dividend ETF
Which is better, QQQ or SDY?
Large Cap Growth against Mid Cap Value.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. SDY is less concentrated, with 20.3% of the fund in its ten largest positions against 46.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | SDY |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.35% |
| AUM | $506.1B | $21.0B |
| Dividend Yield | 0.42% | 2.58% |
| Holdings | 321 | 317 |
| YTD Return | +19.30%Best | +10.61% |
| 1Y Return | +22.47%Best | +11.79% |
| 3Y Return (annualized) | +26.18%Best | +12.76% |
| 5Y Return (annualized) | +15.42%Best | +7.28% |
| Volatility (annualized) | 18.4% | 14.9%Best |
| Max Drawdown | -53.5%Best | -58.6% |
| $10,000 over 5 years | $20,484Best | $14,210 |
| Top 10 Weight | 46.7% | 20.3%Best |
| Fund Family | Invesco (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Value |
| Inception | Mar 10, 1999 | Nov 8, 2005 |
Volatility and max drawdown are measured over the window both funds cover: Nov 15, 2005 to Oct 14, 2026 (20.9 years).
QQQ vs SDY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 20.9 years both funds cover.
QQQ vs SDY Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street SPDR S&P Dividend ETF (SDY) is an ETF from State Street Investment Management. Over the past year QQQ returned +22.47% while SDY returned +11.79%. Year to date, QQQ is up 19.30% versus a gain of 10.61% for SDY.
Over three years, QQQ compounded at +26.18% per year against +12.76% for SDY; over five years the annualized figures are +15.42% and +7.28% respectively. Across the full 21-year window we track, QQQ has the edge at +15.00% annualized vs +5.85%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.4% compared with 14.9% for SDY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -53.5% for QQQ and -58.6% for SDY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.64. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while SDY charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 2.58% for SDY.
Holdings Overlap
13.1% of QQQ's money is in holdings SDY also owns. 11.2% of SDY's money is in holdings QQQ also owns.
QQQ and SDY share little of their money.
13 positions in common, counted across the 101 positions we hold weights for in QQQ and 155 in SDY, against full books of 321 and 317.
What only one of them owns
Our book lists 141 positions for SDY that do not appear in our book for QQQ (88.5% of the fund), and 79 for QQQ that do not appear in SDY (83.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in SDY | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 5.76% | 0.59% | 5.17% |
| PEPPepsico Inc. | 0.72% | 1.84% | 1.12% |
| WMTWalmart, Inc. | 2.11% | 0.38% | 1.73% |
| TXNTexas Instruments Inc. | 1.07% | 0.86% | 0.21% |
| ADPAutomatic Data Processing, Inc. | 0.43% | 1.46% | 1.03% |
| QCOMQualcomm Inc. | 0.81% | 0.95% | 0.14% |
| XELXcel Energy Inc. | 0.18% | 1.19% | 1.01% |
| ADIAnalog Devices, Inc. | 0.80% | 0.54% | 0.26% |
| FASTFastenal Co. | 0.24% | 1.01% | 0.77% |
| MCHPMicrochip Technology Inc. | 0.18% | 0.86% | 0.68% |
You are not choosing between two funds in isolation.
Whichever of QQQ and SDY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or SDY?
QQQ has an expense ratio of 0.18% while SDY charges 0.35%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, QQQ or SDY?
Over the past year QQQ returned +22.47% vs +11.79% for SDY, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), QQQ annualized +15.00% vs +5.85% for SDY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or SDY?
QQQ has been the more volatile fund at 18.4% annualized versus 14.9% for SDY. Worst drawdown: QQQ -53.5% vs SDY -58.6%.
Should I hold both QQQ and SDY?
QQQ and SDY have a monthly-return correlation of 0.64, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and SDY?
13.1% of QQQ's money is in holdings SDY also owns. 11.2% of SDY's is in holdings QQQ also owns. They hold 13 positions in common, counted across the 101 positions we hold weights for in QQQ and 155 in SDY.
Which pays a higher dividend, QQQ or SDY?
QQQ yields 0.42% while SDY yields 2.58%, so SDY currently pays the higher dividend yield.
Is SDY better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. SDY is less concentrated, with 20.3% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.