ISPY vs QQQ
ProShares S&P 500 High Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. ISPY offers more diversification with 512 holdings.
Side-by-Side Comparison
| Metric | ISPY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.18% | |
| AUM | $1.3B | $496.3B | |
| Dividend Yield | 4.66% | 0.44% | |
| Holdings | 512 | 108 | |
| YTD Return | +5.65% | +15.47% | |
| 1Y Return | +12.28% | +24.44% | |
| 3Y Return (annualized) | - | +25.47% | |
| 5Y Return (annualized) | - | +14.22% | |
| Volatility (annualized) | 15.5% | 30.6% | |
| Max Drawdown | -18.4% | -83.0% | |
| Fund Family | ProShares | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 18, 2023 | Mar 10, 1999 |
ISPY vs QQQ Performance
ProShares S&P 500 High Income ETF (ISPY) is a ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ISPY returned +12.28% while QQQ returned +24.44%. Year to date, ISPY is up 5.65% versus a gain of 15.47% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 15.5% for ISPY. 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 -18.4% for ISPY and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ISPY charges 0.56% per year while QQQ charges 0.18%. On a $10,000 position that is $56 vs $18 annually, a gap of $38 per year that compounds over a long holding period. On income, ISPY currently yields 4.66% against 0.44% for QQQ.
Holdings Overlap
ISPY and QQQ share 87 holdings out of 519 unique holdings combined, representing a 45.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ISPY or QQQ?
ISPY has an expense ratio of 0.56% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, ISPY or QQQ?
Over the past year ISPY returned +12.28% vs +24.44% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), ISPY annualized +7.55% vs +12.99% for QQQ. Past performance does not guarantee future results.
Which is riskier, ISPY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.5% for ISPY. Worst drawdown: ISPY -18.4% vs QQQ -83.0%.
Should I hold both ISPY and QQQ?
ISPY and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ISPY and QQQ?
ISPY and QQQ share 87 common holdings with a 45.7% weight overlap. Combined, they hold 519 unique securities.
Which pays a higher dividend, ISPY or QQQ?
ISPY yields 4.66% while QQQ yields 0.44%, so ISPY currently pays the higher dividend yield.
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