QQQE vs SPY
Direxion NASDAQ-100 Equal Weighted Index ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. QQQE delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | QQQE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $1.5B | $821.1B | |
| Dividend Yield | 0.58% | 1.01% | |
| Holdings | 103 | 505 | |
| YTD Return | +19.78% | +12.22% | |
| 1Y Return | +25.98% | +20.83% | |
| 3Y Return (annualized) | +18.06% | +21.70% | |
| 5Y Return (annualized) | +9.11% | +12.98% | |
| Volatility (annualized) | 16.2% | 15.3% | |
| Max Drawdown | -32.1% | -56.5% | |
| Fund Family | Direxion Shares ETF Trust | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 21, 2012 | Jan 22, 1993 |
QQQE vs SPY Performance
Direxion NASDAQ-100 Equal Weighted Index ETF (QQQE) is a ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year QQQE returned +25.98% while SPY returned +20.83%. Year to date, QQQE is up 19.78% versus a gain of 12.22% for SPY.
Over three years, QQQE compounded at +18.06% per year against +21.70% for SPY; over five years the annualized figures are +9.11% and +12.98% respectively. Across the full 14-year window we track, QQQE has the edge at +13.95% annualized vs +8.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQE has been the more volatile fund, with annualized monthly volatility of 16.2% compared with 15.3% for SPY. 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 -32.1% for QQQE and -56.5% for SPY. 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQE charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, QQQE currently yields 0.58% against 1.01% for SPY.
Holdings Overlap
QQQE and SPY share 87 holdings out of 520 unique holdings combined, representing a 24.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQE or SPY?
QQQE has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, QQQE or SPY?
Over the past year QQQE returned +25.98% vs +20.83% for SPY, so QQQE leads on 1-year performance. Over the longest common window we track (14 years), QQQE annualized +13.95% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, QQQE or SPY?
QQQE has been the more volatile fund at 16.2% annualized versus 15.3% for SPY. Worst drawdown: QQQE -32.1% vs SPY -56.5%.
Should I hold both QQQE and SPY?
QQQE and SPY have a monthly-return correlation of 0.93, 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 QQQE and SPY?
QQQE and SPY share 87 common holdings with a 24.5% weight overlap. Combined, they hold 520 unique securities.
Which pays a higher dividend, QQQE or SPY?
QQQE yields 0.58% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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