QQQ vs SPYT
Invesco QQQ Trust, Series 1 vs Defiance S&P 500 Income Target ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SPYT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.92% | |
| AUM | $496.3B | $160M | |
| Dividend Yield | 0.44% | 21.07% | |
| Holdings | 108 | 5 | |
| YTD Return | +16.23% | +11.30% | |
| 1Y Return | +26.23% | +17.36% | |
| 3Y Return (annualized) | +25.75% | - | |
| 5Y Return (annualized) | +14.78% | - | |
| Volatility (annualized) | 30.6% | 11.0% | |
| Max Drawdown | -83.0% | -18.3% | |
| Fund Family | Invesco (US) | Defiance ETFs, LLC | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Mar 7, 2024 |
QQQ vs SPYT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Defiance S&P 500 Income Target ETF (SPYT) is a ETF from Defiance ETFs, LLC. Over the past year QQQ returned +26.23% while SPYT returned +17.36%. Year to date, QQQ is up 16.23% versus a gain of 11.30% for SPYT.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 11.0% for SPYT. 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 -18.3% for SPYT. 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 0.90. 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 SPYT charges 0.92%. On a $10,000 position that is $18 vs $92 annually, a gap of $74 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 21.07% for SPYT.
Holdings Overlap
QQQ and SPYT share 0 holdings out of 104 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SPYT?
QQQ has an expense ratio of 0.18% while SPYT charges 0.92%. QQQ is the cheaper option. On a $10,000 investment, that is $74 per year of difference.
Which performed better, QQQ or SPYT?
Over the past year QQQ returned +26.23% vs +17.36% for SPYT, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.02% vs +15.24% for SPYT. Past performance does not guarantee future results.
Which is riskier, QQQ or SPYT?
QQQ has been the more volatile fund at 30.6% annualized versus 11.0% for SPYT. Worst drawdown: QQQ -83.0% vs SPYT -18.3%.
Should I hold both QQQ and SPYT?
QQQ and SPYT have a monthly-return correlation of 0.90, 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 SPYT?
QQQ and SPYT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, QQQ or SPYT?
QQQ yields 0.44% while SPYT yields 21.07%, so SPYT currently pays the higher dividend yield.
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