SPY vs TQQQ
State Street SPDR S&P 500 ETF Trust vs ProShares UltraPro QQQ
Quick Verdict
SPY has a lower expense ratio. TQQQ delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | TQQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.82% | |
| AUM | $821.1B | $38.9B | |
| Dividend Yield | 1.01% | 0.58% | |
| Holdings | 505 | 128 | |
| YTD Return | +12.68% | +36.49% | |
| 1Y Return | +21.82% | +65.64% | |
| 3Y Return (annualized) | +21.98% | +57.14% | |
| 5Y Return (annualized) | +12.89% | +16.08% | |
| Volatility (annualized) | 15.3% | 55.2% | |
| Max Drawdown | -56.5% | -81.7% | |
| Fund Family | State Street Investment Management | ProShares | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Feb 9, 2010 |
SPY vs TQQQ Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and ProShares UltraPro QQQ (TQQQ) is a ETF from ProShares. Over the past year SPY returned +21.82% while TQQQ returned +65.64%. Year to date, SPY is up 12.68% versus a gain of 36.49% for TQQQ.
Over three years, SPY compounded at +21.98% per year against +57.14% for TQQQ; over five years the annualized figures are +12.89% and +16.08% respectively. Across the full 17-year window we track, TQQQ has the edge at +42.46% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TQQQ has been the more volatile fund, with annualized monthly volatility of 55.2% 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 -56.5% for SPY and -81.7% for TQQQ. 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SPY charges 0.09% per year while TQQQ charges 0.82%. On a $10,000 position that is $9 vs $82 annually, a gap of $73 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.58% for TQQQ.
Holdings Overlap
SPY and TQQQ share 87 holdings out of 521 unique holdings combined, representing a 28.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or TQQQ?
SPY has an expense ratio of 0.09% while TQQQ charges 0.82%. SPY is the cheaper option. On a $10,000 investment, that is $73 per year of difference.
Which performed better, SPY or TQQQ?
Over the past year SPY returned +21.82% vs +65.64% for TQQQ, so TQQQ leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.81% vs +42.46% for TQQQ. Past performance does not guarantee future results.
Which is riskier, SPY or TQQQ?
TQQQ has been the more volatile fund at 55.2% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TQQQ -81.7%.
Should I hold both SPY and TQQQ?
SPY and TQQQ have a monthly-return correlation of 0.92, 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 SPY and TQQQ?
SPY and TQQQ share 87 common holdings with a 28.8% weight overlap. Combined, they hold 521 unique securities.
Which pays a higher dividend, SPY or TQQQ?
SPY yields 1.01% while TQQQ yields 0.58%, so SPY currently pays the higher dividend yield.
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