QTEC vs SPY
First Trust NASDAQ-100-Technology Sector Index Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. QTEC delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | QTEC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.09% | |
| AUM | $4.5B | $789.1B | |
| Dividend Yield | 0.01% | 1.01% | |
| Holdings | 46 | 505 | |
| YTD Return | +36.63% | +13.79% | |
| 1Y Return | +49.56% | +23.66% | |
| 3Y Return (annualized) | +28.96% | +21.40% | |
| 5Y Return (annualized) | +14.12% | +13.37% | |
| Volatility (annualized) | 22.4% | 15.3% | |
| Max Drawdown | -58.9% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Apr 19, 2006 | Jan 22, 1993 |
QTEC vs SPY Performance
First Trust NASDAQ-100-Technology Sector Index Fund (QTEC) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year QTEC returned +49.56% while SPY returned +23.66%. Year to date, QTEC is up 36.63% versus a gain of 13.79% for SPY.
Over three years, QTEC compounded at +28.96% per year against +21.40% for SPY; over five years the annualized figures are +14.12% and +13.37% respectively. Across the full 20-year window we track, QTEC has the edge at +14.74% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QTEC has been the more volatile fund, with annualized monthly volatility of 22.4% 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 -58.9% for QTEC 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QTEC charges 0.55% per year while SPY charges 0.09%. On a $10,000 position that is $55 vs $9 annually, a gap of $46 per year that compounds over a long holding period. On income, QTEC currently yields 0.01% against 1.01% for SPY.
Holdings Overlap
QTEC and SPY share 37 holdings out of 513 unique holdings combined, representing a 23.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QTEC or SPY?
QTEC has an expense ratio of 0.55% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, QTEC or SPY?
Over the past year QTEC returned +49.56% vs +23.66% for SPY, so QTEC leads on 1-year performance. Over the longest common window we track (20 years), QTEC annualized +14.74% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, QTEC or SPY?
QTEC has been the more volatile fund at 22.4% annualized versus 15.3% for SPY. Worst drawdown: QTEC -58.9% vs SPY -56.5%.
Should I hold both QTEC and SPY?
QTEC and SPY 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 QTEC and SPY?
QTEC and SPY share 37 common holdings with a 23.3% weight overlap. Combined, they hold 513 unique securities.
Which pays a higher dividend, QTEC or SPY?
QTEC yields 0.01% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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