QQQ vs TSPY
Invesco QQQ Trust, Series 1 vs TappAlpha S&P 500 Growth & Daily Income ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | TSPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.71% | |
| AUM | $455.8B | $300M | |
| Dividend Yield | 0.41% | 16.26% | |
| Holdings | 108 | 5 | |
| YTD Return | +17.46% | +9.22% | |
| 1Y Return | +26.02% | +19.23% | |
| 3Y Return (annualized) | +25.51% | - | |
| 5Y Return (annualized) | +15.12% | - | |
| Volatility (annualized) | 30.6% | 12.6% | |
| Max Drawdown | -83.0% | -18.0% | |
| Fund Family | Invesco (US) | TappAlpha | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Aug 14, 2024 |
QQQ vs TSPY Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and TappAlpha S&P 500 Growth & Daily Income ETF (TSPY) is a ETF from TappAlpha. Over the past year QQQ returned +26.02% while TSPY returned +19.23%. Year to date, QQQ is up 17.46% versus a gain of 9.22% for TSPY.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.6% for TSPY. 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 -18.0% for TSPY. 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while TSPY charges 0.71%. On a $10,000 position that is $18 vs $71 annually, a gap of $53 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 16.26% for TSPY.
Holdings Overlap
QQQ and TSPY share 0 holdings out of 105 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 TSPY?
QQQ has an expense ratio of 0.18% while TSPY charges 0.71%. QQQ is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, QQQ or TSPY?
Over the past year QQQ returned +26.02% vs +19.23% for TSPY, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.08% vs +17.57% for TSPY. Past performance does not guarantee future results.
Which is riskier, QQQ or TSPY?
QQQ has been the more volatile fund at 30.6% annualized versus 12.6% for TSPY. Worst drawdown: QQQ -83.0% vs TSPY -18.0%.
Should I hold both QQQ and TSPY?
QQQ and TSPY have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TSPY?
QQQ and TSPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, QQQ or TSPY?
QQQ yields 0.41% while TSPY yields 16.26%, so TSPY currently pays the higher dividend yield.
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