QQQ vs TSPY

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQTSPYWinner
Expense Ratio0.18%0.71%
AUM$455.8B$300M
Dividend Yield0.41%16.26%
Holdings1085
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 FamilyInvesco (US)TappAlpha
CategoryEquityAlternative
InceptionMar 10, 1999Aug 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

0.0%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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