Which Is the Better ETF, State Street's Broad Market Exposure Through SPY or Invesco's Tech-Focused QQQ?
QQQ delivered higher returns while SPY sports lower fees and a higher dividend yield.
Overview
The State Street SPDR S&P 500 ETF (NYSEMKT:SPY) provides broad-market exposure at half the cost of Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), which offers concentrated tech growth and higher historical returns.
These two funds are benchmarks for different segments of the market. While one tracks the broader large-cap universe, the other focuses on the tech-heavy Nasdaq-100. This comparison highlights how their cost structures and portfolio tilts may appeal to different investment strategies.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.