SPY vs YQQQ
State Street SPDR S&P 500 ETF Trust vs YieldMax Short N100 Option Income Strategy ETF
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 | YQQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 1.11% | |
| AUM | $821.1B | $15M | |
| Dividend Yield | 1.01% | 28.84% | |
| Holdings | 505 | 27 | |
| YTD Return | +12.35% | -5.48% | |
| 1Y Return | +20.15% | -6.73% | |
| 3Y Return (annualized) | +21.69% | - | |
| 5Y Return (annualized) | +12.77% | - | |
| Volatility (annualized) | 15.3% | 15.6% | |
| Max Drawdown | -56.5% | -29.1% | |
| Fund Family | State Street Investment Management | YieldMax ETF | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Aug 14, 2024 |
SPY vs YQQQ Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and YieldMax Short N100 Option Income Strategy ETF (YQQQ) is a ETF from YieldMax ETF. Over the past year SPY returned +20.15% while YQQQ returned -6.73%. Year to date, SPY is up 12.35% versus a loss of 5.48% for YQQQ.
Risk: Volatility and Drawdowns
YQQQ has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -29.1% for YQQQ. 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 -0.85. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while YQQQ charges 1.11%. On a $10,000 position that is $9 vs $111 annually, a gap of $102 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 28.84% for YQQQ.
Holdings Overlap
SPY and YQQQ share 0 holdings out of 507 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 YQQQ?
SPY has an expense ratio of 0.09% while YQQQ charges 1.11%. SPY is the cheaper option. On a $10,000 investment, that is $102 per year of difference.
Which performed better, SPY or YQQQ?
Over the past year SPY returned +20.15% vs -6.73% for YQQQ, so SPY leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.79% vs -9.27% for YQQQ. Past performance does not guarantee future results.
Which is riskier, SPY or YQQQ?
YQQQ has been the more volatile fund at 15.6% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs YQQQ -29.1%.
Should I hold both SPY and YQQQ?
SPY and YQQQ have a monthly-return correlation of -0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and YQQQ?
SPY and YQQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, SPY or YQQQ?
SPY yields 1.01% while YQQQ yields 28.84%, so YQQQ currently pays the higher dividend yield.
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