SPY vs SQQQ
State Street SPDR S&P 500 ETF Trust vs ProShares UltraPro Short QQQ
Which is better, SPY or SQQQ?
Opposite sides of the same exposure.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.87, so holding both offsets the exposure while paying both fees.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | SQQQ |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.95% |
| AUM | $804.7B | $2.1B |
| Dividend Yield | 0.98% | 10.38% |
| Holdings | 505 | 20 |
| YTD Return | +11.52%Best | -40.75% |
| 1Y Return | +17.48%Best | -50.19% |
| 3Y Return (annualized) | +20.62%Best | -52.13% |
| 5Y Return (annualized) | +12.73%Best | -44.35% |
| Volatility (annualized) | 14.4%Best | 48.3% |
| Max Drawdown | -34.1% | - |
| $10,000 over 5 years | $18,205Best | $534 |
| Fund Family | State Street Investment Management | ProShares |
| Category | Equity | Alternative |
| Style | Large Cap Blend | Trading-Inverse Equity |
| Inception | Jan 22, 1993 | Feb 9, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 11, 2010 to Sep 10, 2026 (16.6 years).
SPY vs SQQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16.6 years both funds cover.
SPY vs SQQQ Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and ProShares UltraPro Short QQQ (SQQQ) is an ETF from ProShares. Over the past year SPY returned +17.48% while SQQQ returned -50.19%. Year to date, SPY is up 11.52% versus a loss of 40.75% for SQQQ.
Over three years, SPY compounded at +20.62% per year against -52.13% for SQQQ; over five years the annualized figures are +12.73% and -44.35% respectively. Across the full 17-year window we track, SPY has the edge at +12.97% annualized vs -52.58%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SQQQ has been the more volatile fund, with annualized monthly volatility of 48.3% compared with 14.4% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at -0.87. They move opposite each other. Holding both offsets the exposure rather than spreading it, while paying both funds' fees.
Fees and Cost Over Time
SPY charges 0.09% per year while SQQQ charges 0.95%. On a $10,000 position that is $9 vs $95 annually, a gap of $86 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 10.38% for SQQQ.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 1 in SQQQ, totalling 100.0% and 66.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 504 positions we hold weights for in SPY and 1 in SQQQ, against full books of 505 and 20.
You are not choosing between two funds in isolation.
Whichever of SPY and SQQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or SQQQ?
SPY has an expense ratio of 0.09% while SQQQ charges 0.95%. SPY is the cheaper option, by $86 a year on a $10,000 investment.
Which performed better, SPY or SQQQ?
Over the past year SPY returned +17.48% vs -50.19% for SQQQ, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +12.97% vs -52.58% for SQQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or SQQQ?
SQQQ has been the more volatile fund at 48.3% annualized versus 14.4% for SPY.
Should I hold both SPY and SQQQ?
SPY and SQQQ have a monthly-return correlation of -0.87, so they move opposite each other. Holding both offsets the exposure rather than spreading it, and pays both funds' fees on the way. This is information, not a recommendation.
Which pays a higher dividend, SPY or SQQQ?
SPY yields 0.98% while SQQQ yields 10.38%, so SQQQ currently pays the higher dividend yield.
Is SQQQ better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.87, so holding both offsets the exposure while paying both fees. Which one suits a particular account depends on what it is for. This is information, not a recommendation.