QQQ vs SPHQ
Invesco QQQ Trust, Series 1 vs Invesco S&P 500 Quality ETF
Quick Verdict
SPHQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SPHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.15% | |
| AUM | $496.3B | $20.1B | |
| Dividend Yield | 0.44% | 1.10% | |
| Holdings | 108 | 102 | |
| YTD Return | +19.52% | +16.87% | |
| 1Y Return | +26.68% | +22.24% | |
| 3Y Return (annualized) | +26.64% | +21.07% | |
| 5Y Return (annualized) | +15.36% | +12.91% | |
| Volatility (annualized) | 30.6% | 15.4% | |
| Max Drawdown | -83.0% | -57.8% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 6, 2005 |
QQQ vs SPHQ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco S&P 500 Quality ETF (SPHQ) is a ETF from Invesco (US). Over the past year QQQ returned +26.68% while SPHQ returned +22.24%. Year to date, QQQ is up 19.52% versus a gain of 16.87% for SPHQ.
Over three years, QQQ compounded at +26.64% per year against +21.07% for SPHQ; over five years the annualized figures are +15.36% and +12.91% respectively. Across the full 21-year window we track, QQQ has the edge at +13.14% annualized vs +9.09%. 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 15.4% for SPHQ. 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 -57.8% for SPHQ. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SPHQ charges 0.15%. On a $10,000 position that is $18 vs $15 annually, a gap of $3 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.10% for SPHQ.
Holdings Overlap
QQQ and SPHQ share 26 holdings out of 176 unique holdings combined, representing a 23.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SPHQ?
QQQ has an expense ratio of 0.18% while SPHQ charges 0.15%. SPHQ is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, QQQ or SPHQ?
Over the past year QQQ returned +26.68% vs +22.24% for SPHQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), QQQ annualized +13.14% vs +9.09% for SPHQ. Past performance does not guarantee future results.
Which is riskier, QQQ or SPHQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.4% for SPHQ. Worst drawdown: QQQ -83.0% vs SPHQ -57.8%.
Should I hold both QQQ and SPHQ?
QQQ and SPHQ have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SPHQ?
QQQ and SPHQ share 26 common holdings with a 23.6% weight overlap. Combined, they hold 176 unique securities.
Which pays a higher dividend, QQQ or SPHQ?
QQQ yields 0.44% while SPHQ yields 1.10%, so SPHQ currently pays the higher dividend yield.
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