QQA vs SPY
Invesco QQQ Income Advantage ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | QQA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.09% | |
| AUM | $778M | $789.1B | |
| Dividend Yield | 9.53% | 1.01% | |
| Holdings | 122 | 505 | |
| YTD Return | +13.42% | +13.75% | |
| 1Y Return | +21.87% | +22.91% | |
| 3Y Return (annualized) | - | +21.67% | |
| 5Y Return (annualized) | - | +13.32% | |
| Volatility (annualized) | 12.8% | 15.3% | |
| Max Drawdown | -19.7% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jul 17, 2024 | Jan 22, 1993 |
QQA vs SPY Performance
Invesco QQQ Income Advantage ETF (QQA) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year QQA returned +21.87% while SPY returned +22.91%. Year to date, QQA is up 13.42% versus a gain of 13.75% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.8% for QQA. 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 -19.7% for QQA and -56.5% for SPY. 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQA charges 0.29% per year while SPY charges 0.09%. On a $10,000 position that is $29 vs $9 annually, a gap of $20 per year that compounds over a long holding period. On income, QQA currently yields 9.53% against 1.01% for SPY.
Holdings Overlap
QQA and SPY share 89 holdings out of 526 unique holdings combined, representing a 47.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQA or SPY?
QQA has an expense ratio of 0.29% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, QQA or SPY?
Over the past year QQA returned +21.87% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), QQA annualized +19.11% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, QQA or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.8% for QQA. Worst drawdown: QQA -19.7% vs SPY -56.5%.
Should I hold both QQA and SPY?
QQA and SPY have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQA and SPY?
QQA and SPY share 89 common holdings with a 47.0% weight overlap. Combined, they hold 526 unique securities.
Which pays a higher dividend, QQA or SPY?
QQA yields 9.53% while SPY yields 1.01%, so QQA currently pays the higher dividend yield.
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