QQQ vs. SPY — ETF Comparison - Stock Analysis (2024)

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QQQ vs. SPY — ETF Comparison - Stock Analysis? ›

Average Return. In the past year, QQQ returned a total of 30.38%, which is higher than SPY's 28.05% return. Over the past 10 years, QQQ has had annualized average returns of 18.30% , compared to 12.59% for SPY. These numbers are adjusted for stock splits and include dividends.

QQQ is better to buy for investments of a year or more. The NASDAQ-100 index dynamics are more volatile compared to the S&P 500. With a shorter investment horizon, there's a high risk of a decrease in value.

The QQQ ETF offers buy-and-hold investors low expenses and long-term growth potential with enough diversification to avoid the risks of betting on one company. On the downside, long-term investors in QQQ must deal with sector risk, possible overvaluation, and the absence of small caps.

QQQ has a consensus rating of Moderate Buy which is based on 87 buy ratings, 15 hold ratings and 0 sell ratings. What is QQQ's price target? The average price target for QQQ is $509.64. This is based on 102 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

Invesco QQQ ETF

This ETF has been a huge winner over the past decade, producing an annual average return of 18.1%. That easily outpaces the performance of the Vanguard S&P 500 Growth ETF and the S&P 500 index. Invesco boasts that the ETF has outperformed the S&P 500 index 87% of the time over the past decade.

QQQ appears to be the single best long-term investment option for investors seeking total returns due to its ability to expose holders to top U.S. companies on an ongoing basis. The Nasdaq 100 has consistently outperformed the S&P 500 in terms of total returns, making it a favorable choice for long-term investors.

The Invesco QQQ ETF has achieved 10-year returns of 445%. Dividend ETFs can be a retiree's best friend. A new Invesco ETF is one of a handful of funds that makes it easier than ever to invest in Bitcoin.

Is QQQ better than voo? ›

Average Return

In the past year, QQQ returned a total of 30.38%, which is higher than VOO's 27.99% return. Over the past 10 years, QQQ has had annualized average returns of 18.30% , compared to 12.63% for VOO. These numbers are adjusted for stock splits and include dividends.

Invesco QQQ Market Price: YTD: 8.56%; 1YR: 39.27%; 3YR: 12.34%; 5YR: 20.62%; 10YR: 18.58%; Since Inception: 9.70%.

Average Return

In the past year, QQQ returned a total of 35.63%, which is significantly higher than SPY's 28.51% return. Over the past 10 years, QQQ has had annualized average returns of 18.72% , compared to 12.88% for SPY. These numbers are adjusted for stock splits and include dividends.

Overall, if you want more on the information technology and consumer dictionary industry, then QQQ is a better ETF for you. SPY is a better option if you want a more diversified portfolio. Now, let's compare the top 10 holdings of VOO and SPY.

Invesco QQQ Trust

Despite its popularity, QQQ is very rarely the best choice for any investor. If you want a quick, easy way to invest in the high-flying tech stocks found in the Nasdaq-100 index, one of the most popular ETFs you could buy is the Invesco QQQ Trust ETF (QQQ -0.19%).

QQQ Dividend Information

QQQ has a dividend yield of 0.58% and paid $2.64 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 18, 2024.

The CAGR returns have been in the range of 23-40%. The significantly higher allocation towards FAANG stocks has ensured that Nasdaq 100 has outperformed S&P 500 index by a wide margin.

Bottom line. The SPY ETF is a cost-effective investment option for investors looking to gain exposure to about 500 large US companies. However, it is also subject to the same risks as any other investment in the stock market, including market volatility, and economic and geopolitical risks.