What is the fee difference between QQQ and SPY?

QQQ charges an expense ratio of 0.18% a year, while SPY charges 0.09%. On a $10,000 investment that is about $18 a year for QQQ and $9 for SPY, a difference of roughly $9. Fees are deducted from fund assets rather than billed separately, so the gap shows up as slightly lower returns over time for the more expensive fund.

What index does each fund track?

QQQ tracks the Nasdaq-100 Index, which covers about 100 of the largest non-financial companies listed on the Nasdaq exchange and currently has 104 holdings. SPY tracks the S&P 500, a broad benchmark of 505 large US companies chosen across all sectors of the economy. Both are market-cap weighted, so bigger companies take up more of each fund.

How much do the holdings of QQQ and SPY overlap?

Nine of the ten largest holdings are the same in both funds: NVIDIA, Apple, Microsoft, Amazon, Alphabet (both share classes), Meta, Micron and Tesla. The difference is in the weights. NVIDIA is 8.5% of QQQ versus 8.1% of SPY, and Apple is 7.9% versus 7.5%. QQQ adds AMD to its top ten while SPY includes Broadcom.

Which fund pays more in dividends?

SPY has a dividend yield of 0.99%, more than double the 0.41% yield of QQQ. The gap reflects the mix of companies: SPY holds dividend-paying sectors such as energy, healthcare and consumer staples, while QQQ is dominated by growth companies that reinvest most of their profits rather than paying them out.

Which fund suits which investment goal?

QQQ is typically chosen by investors who want a deliberate tilt toward large-cap technology and growth companies and accept more concentration. SPY is typically chosen as a core holding that represents the whole US large-cap market, including sectors QQQ has little of. Neither is right for everyone; the choice depends on how much sector concentration an investor is comfortable with.

How do QQQ and SPY compare on size and liquidity?

SPY is the larger fund with about $785 billion in net assets, compared with about $484 billion for QQQ. Both are among the most heavily traded ETFs in the world, so buying or selling in normal market hours is straightforward for retail investors, and bid-ask spreads are usually very tight for both.

How old are these funds?

SPY launched on January 22, 1993 and was the first US-listed ETF, giving it more than three decades of trading history. QQQ launched on March 10, 1999, so it has traded through the dot-com bust, the 2008 financial crisis and every cycle since. Both have long, well-documented records that investors can study.

Are there tax differences between QQQ and SPY?

Both are US-listed ETFs, and for non-US investors dividends are generally subject to US withholding tax at a rate that depends on your country's tax treaty. Because SPY pays a higher yield, more of its return arrives as taxable dividends. Tax treatment varies by country and account type, so check the rules that apply to you.

Can I hold both QQQ and SPY?

Yes, many investors hold both, but it is worth knowing that they share nine of their ten largest holdings. Owning both mainly increases the weighting to mega-cap technology names rather than adding new diversification. Some investors use SPY as a core position and QQQ as a smaller satellite to add a growth tilt.

QQQ vs SPY

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

QQQ tracks the Nasdaq-100, 104 holdings tilted toward technology, for 0.18% a year. SPY tracks the S&P 500, 505 holdings across every major sector, for 0.09%, and pays a 0.99% yield versus 0.41% for QQQ. QQQ suits investors who want concentrated large-cap growth; SPY suits those who want the broadest US large-cap benchmark at half the fee. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

QQQ

Metric

SPY

0.18%

Expense Ratio

0.09%

0.41%

Dividend Yield

0.99%

$484.28B

Net Assets

$785.05B

104

Holdings

505

Mar 10, 1999

Inception Date

Jan 22, 1993

NASDAQ 100 Index

Index Tracked

S&P 500

Large Growth

Fund Category

Large Blend

SPY costs about $9.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	QQQ	SPY
NVDANVIDIA Corporation	8.46%	8.07%
AAPLApple Inc.	7.89%	7.51%
MSFTMicrosoft Corporation	5.89%	5.61%
MUMicron Technology, Inc.	4.85%	1.67%
AMZNAmazon.com, Inc.	4.31%	3.73%
GOOGLAlphabet Inc.	3.22%	3.09%
METAMeta Platforms, Inc.	3.22%	2.27%
GOOGAlphabet Inc.	2.99%	2.47%
TSLATesla, Inc.	2.92%	1.57%

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Investment Analysis

QQQ

Pros

Concentrated exposure to 104 of the largest Nasdaq-listed growth companies in a single fund
Heavier weights in technology leaders such as NVIDIA, Apple and Microsoft than SPY carries
Very large fund at $484 billion in assets, so trading is liquid and spreads stay tight

Considerations

Expense ratio of 0.18% is double the 0.09% charged by SPY
Dividend yield of 0.41% is less than half the 0.99% yield on SPY
Only 104 holdings, all Nasdaq-listed, so exposure to other sectors and exchanges is limited

SPY

Pros

Expense ratio of 0.09% costs about $9 a year per $10,000, half the cost of QQQ
505 holdings across every major US sector give broader diversification than QQQ
At $785 billion in assets and trading since 1993, it is the larger and older fund

Considerations

Smaller technology weighting than QQQ, so it participates less in technology-led rallies
Yield of 0.99% is still modest for investors who want meaningful income
Market-cap weighting means the same mega-cap names dominate the top ten as in QQQ

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About QQQ and SPY

QQQ (QQQ)

Invesco QQQ Trust Series 1 (QQQ) is a widely traded exchange‑traded fund that seeks to track the Nasdaq‑100 Index, offering concentrated exposure to large non‑financial companies listed on the Nasdaq — think technology, consumer and biotech leaders. It provides a convenient way to gain growth-oriented exposure to a basket of big-cap, often high-growth names, with intraday liquidity like a stock. Investors should know QQQ is relatively concentrated in a handful of large issuers and sectors, which can amplify both upside and downside versus broader-market funds. It pays modest dividends and typically has higher volatility than diversified market-cap indices. As with any ETF, past performance does not predict future returns; values can fall as well as rise. This content is educational and not personalised advice — consider your risk tolerance, investment horizon and diversification needs before investing, and consult a regulated adviser for tailored guidance.

SPY (SPY)

SPDR S&P 500 ETF Trust (SPY) is an exchange‑traded fund designed to track the S&P 500 index, offering investors broad exposure to large‑capitalisation US equities. It is widely used by retail and institutional investors for core portfolio allocation, tactical trading and hedging because of its deep liquidity and transparent holdings. SPY distributes dividends (typically quarterly) and reflects the performance of the underlying index, so returns move with the US large‑cap market. As with any equity product, value can fall as well as rise and past performance is not a guide to the future. Costs, tax considerations and suitability will depend on an individual’s circumstances; consult official documents and consider seeking independent advice where appropriate. This summary is general educational information and not personalised investment advice.

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QQQ vs SPY

Fund Snapshot