SPY vs SQQQ
State Street SPDR S&P 500 ETF Trust vs ProShares UltraPro Short QQQ
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | SQQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.95% | |
| AUM | $821.1B | $1.8B | |
| Dividend Yield | 1.01% | 9.13% | |
| Holdings | 505 | 20 | |
| YTD Return | +12.68% | -42.05% | |
| 1Y Return | +21.82% | -55.32% | |
| 3Y Return (annualized) | +21.98% | -54.21% | |
| 5Y Return (annualized) | +12.89% | -44.93% | |
| Volatility (annualized) | 15.3% | 48.4% | |
| Max Drawdown | -56.5% | -100.0% | |
| Fund Family | State Street Investment Management | ProShares | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Feb 9, 2010 |
SPY vs SQQQ Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and ProShares UltraPro Short QQQ (SQQQ) is a ETF from ProShares. Over the past year SPY returned +21.82% while SQQQ returned -55.32%. Year to date, SPY is up 12.68% versus a loss of 42.05% for SQQQ.
Over three years, SPY compounded at +21.98% per year against -54.21% for SQQQ; over five years the annualized figures are +12.89% and -44.93% respectively. Across the full 17-year window we track, SPY has the edge at +8.81% annualized vs -52.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SQQQ has been the more volatile fund, with annualized monthly volatility of 48.4% 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 -56.5% for SPY and -100.0% for SQQQ. 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 -0.87. They move independently enough that combining them can meaningfully diversify a portfolio.
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 1.01% against 9.13% for SQQQ.
Holdings Overlap
SPY and SQQQ share 0 holdings out of 505 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, SPY or SQQQ?
SPY has an expense ratio of 0.09% while SQQQ charges 0.95%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, SPY or SQQQ?
Over the past year SPY returned +21.82% vs -55.32% for SQQQ, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.81% vs -52.76% for SQQQ. Past performance does not guarantee future results.
Which is riskier, SPY or SQQQ?
SQQQ has been the more volatile fund at 48.4% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs SQQQ -100.0%.
Should I hold both SPY and SQQQ?
SPY and SQQQ have a monthly-return correlation of -0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and SQQQ?
SPY and SQQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, SPY or SQQQ?
SPY yields 1.01% while SQQQ yields 9.13%, so SQQQ currently pays the higher dividend yield.
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