Choosing between these two behemoths involves balancing high-octane growth against broader market stability.
While the Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) concentrates on the largest non-financial leaders on the Nasdaq-100, the iShares Core S&P 500 ETF (NYSEMKT:IVV) tracks 500 of the largest U.S. companies and offers a more diversified core holding for many portfolios.
Here’s how to decide on the best fit for your goals.
Snapshot (cost & size)
|
Metric |
QQQ |
IVV |
|---|---|---|
|
Issuer |
Invesco |
iShares |
|
Expense ratio |
0.18% |
0.03% |
|
1-yr return (as of June 6, 2026) |
35.0% |
25.9% |
|
Dividend yield |
0.38% |
1.06% |
|
Beta (5Y monthly) |
1.23 |
1.00 |
|
Assets under management (AUM) |
$494 billion |
$855 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
IVV is significantly more affordable, with an expense ratio of 0.03% compared to QQQ’s 0.18%. IVV also offers a substantially higher payout, with a dividend yield more than double that of QQQ.
Performance & risk comparison
|
Metric |
QQQ |
IVV |
|---|---|---|
|
Max drawdown (5 yr) |
-35.12% |
-24.52% |
|
Growth of $1,000 over 5 years (total return) |
$2,165 |
$1,875 |
What’s inside
IVV tracks the S&P 500, with just over 500 holdings. Its sector allocations include technology at 39% of assets, followed by financial services and communication services. Its largest positions include Nvidia, Apple, and Microsoft, and it has paid $8.06 per share in dividends over the trailing 12 months.
QQQ tracks the Nasdaq-100 with 102 holdings. It leans into technology at 59% of assets, with communication services and consumer cyclical rounding out the top three sectors. Its largest holdings match those of IVV, and it has a trailing-12-month dividend of $2.81 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
While IVV and QQQ both track large stocks with an emphasis on tech, they differ in their scope and diversification.
Because IVV tracks the broader S&P 500, it offers greater diversification and can help limit risk. It’s experienced a milder max drawdown over the last five years than QQQ, and its lower beta also suggests less severe price fluctuations.
The drawback of this extra diversification, however, is that it can also lead to lower returns. IVV has underperformed QQQ in both one- and five-year total returns, due at least in part to its smaller focus on tech stocks.
Tech stocks make up nearly 60% of QQQ’s portfolio, compared to just under 40% for IVV. If the tech industry faces volatility in the future, it could hit QQQ harder. But if those stocks continue to outperform, QQQ could be the more lucrative of the two ETFs.
Both funds can be smart buys right now, depending on your investment goals. If you’re looking for relative stability and consistent long-term growth, IVV’s focus on the S&P 500 could be the better fit. On the other hand, investors who are comfortable with volatility and seek greater earning potential may prefer QQQ’s more targeted approach.
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Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Should You Really Invest in QQQ Right Now? Or Is IVV the Better Buy? Here’s What the Data Suggests. was originally published by The Motley Fool