QQQ vs SFY
Invesco QQQ Trust, Series 1 vs Sofi Select 500 ETF
Quick Verdict
SFY has a lower expense ratio. QQQ delivered stronger 1-year returns. SFY offers more diversification with 506 holdings.
Side-by-Side Comparison
| Metric | QQQ | SFY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $496.3B | $705M | |
| Dividend Yield | 0.44% | 0.85% | |
| Holdings | 108 | 506 | |
| YTD Return | +16.64% | +14.86% | |
| 1Y Return | +27.27% | +25.63% | |
| 3Y Return (annualized) | +25.96% | +26.42% | |
| 5Y Return (annualized) | +14.54% | +14.23% | |
| Volatility (annualized) | 30.6% | 17.8% | |
| Max Drawdown | -83.0% | -33.3% | |
| Fund Family | Invesco (US) | SoFi | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Apr 10, 2019 |
QQQ vs SFY Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Sofi Select 500 ETF (SFY) is a ETF from SoFi. Over the past year QQQ returned +27.27% while SFY returned +25.63%. Year to date, QQQ is up 16.64% versus a gain of 14.86% for SFY.
Over three years, QQQ compounded at +25.96% per year against +26.42% for SFY; over five years the annualized figures are +14.54% and +14.23% respectively. Across the full 7-year window we track, SFY has the edge at +17.28% annualized vs +13.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 17.8% for SFY. 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 -83.0% for QQQ and -33.3% for SFY. 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while SFY charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.85% for SFY.
Holdings Overlap
QQQ and SFY share 92 holdings out of 510 unique holdings combined, representing a 51.4% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, QQQ or SFY?
QQQ has an expense ratio of 0.18% while SFY charges 0.05%. SFY is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, QQQ or SFY?
Over the past year QQQ returned +27.27% vs +25.63% for SFY, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), QQQ annualized +13.03% vs +17.28% for SFY. Past performance does not guarantee future results.
Which is riskier, QQQ or SFY?
QQQ has been the more volatile fund at 30.6% annualized versus 17.8% for SFY. Worst drawdown: QQQ -83.0% vs SFY -33.3%.
Should I hold both QQQ and SFY?
QQQ and SFY have a monthly-return correlation of 0.95, 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 QQQ and SFY?
QQQ and SFY share 92 common holdings with a 51.4% weight overlap. Combined, they hold 510 unique securities.
Which pays a higher dividend, QQQ or SFY?
QQQ yields 0.44% while SFY yields 0.85%, so SFY currently pays the higher dividend yield.
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