# How Invesco QQQ Trust, Series 1 (QQQ) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/qqq
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on QQQ alone. It places QQQ (Invesco QQQ Trust, Series 1) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where QQQ stands in the market, and of the alternatives worth a closer look.

Period covered: QQQ's full trading record, from March 1999 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **What you're buying:** QQQ is a technology bet first: 59% of assets, versus 38% in the S&P 500.
- **Right now:** Its return over the past 6 months is ahead of 91% of the ETFs with at least $100 million in assets with that much history, rose 11.2% against 9.1% for the S&P 500. After a 22.8% loss from February 2025 to April 2025, QQQ has bounced 22.3% off the low.
- **Fund or market?:** QQQ rose 3.2% over the past 3 months, in line with the S&P 500, which rose 3.9%: a market move, not its own.
- **Long term:** Over the past decade, QQQ returned 20.6% a year against 15.5% a year for the S&P 500 (553% in total against 321%). QQQ's 10-year return of 553% puts it ahead of 98% of the ETFs with at least $100 million in assets with that much history. The S&P 500 returned 321%.
- **In a crash:** Across seven sell-offs, QQQ has typically fallen 1.2 times as far as the S&P 500. In the 2022 bear market, QQQ fell 33.4%, against 24.5% for the S&P 500. That was more than IWF (iShares Russell 1000 Growth ETF, 31.2%) but less than TCHP (T. Rowe Price Blue Chip Growth ETF, 37.2%).
- **Diversification:** Against the S&P 500, QQQ has a correlation of 0.92 over 5 years, more closely than 86% of ETFs with at least $100 million in assets. Next to an index fund it is more of the same, not a cushion. QQQ fell in 18 of the 22 months the S&P 500 fell over the past 5 years: it usually fell with it.
- **Better options**
  - **Popular alternatives:** SMH (VanEck Semiconductor ETF) and XLK (State Street Technology Select Sector SPDR ETF) were ahead of QQQ in most short and long periods.
  - **Nearby categories and themes:** VLUE (iShares MSCI USA Value Factor ETF, US large-cap value) and PVAL (Putnam Focused Large Cap Value ETF, US large-cap value) earned more than QQQ with less volatility over the past 5 years. VLUE returned 15.9% a year at 18.4% volatility, against 14.5% a year at 23.0%.
  - **Whole market:** Few investments have done better on both counts: only 39 of the 3,633 stocks and funds worth at least $500 million earned more than QQQ with less volatility over the past 5 years, among them NVS (Novartis), RY (Royal Bank of Canada) and TD (Toronto-Dominion Bank).

## How much would $10,000 in QQQ have grown?

This chart tracks a hypothetical $10,000 investment in QQQ over the past 25 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of QQQ over the same span and QQQ's popular alternatives, among those that traded for the entire period.

- $10,000 invested in QQQ at the end of September 2001 would have grown to $303,059 by September 2026, more than the $114,557 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of QQQ, and AAPL finished highest, at $14,356,990.

## QQQ at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- QQQ's deepest decline since it began trading in 1999 was 83.0%, from March 2000 to October 2002. It took about 12 years from the low to climb back to its old high.
- Over 26 full calendar years, QQQ's best was 2023, when it returned 54.9%, and its worst was 2008, when it lost 41.7%. It lost money in six of those years.
- QQQ is 5.5% below its all-time high.

- Type: ETF, Broad Market (Asset Management)
- Trading since: March 10, 1999
- Assets: $492B
- Expense ratio: 0.18%
- Volatility (5 years): 23.0%; Sharpe ratio: 0.71
- Worst decline ever: −83.0%, from March 24, 2000 to October 9, 2002; back at its high by February 20, 2015

| Period | QQQ total return |
| --- | --- |
| 1 month | −3.2% |
| 3 months | +3.2% |
| 6 months | +11.2% |
| year to date | +17.4% |
| 1 year | +17.9% |
| 3 years | +106% |
| 5 years | +97.2% |
| 10 years | +553% |

## QQQ against the whole market

Where QQQ ranks among every stock and fund, and what across the market has done better.

### How does QQQ rank among all ETFs?

This section ranks QQQ on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- QQQ's 10-year return ranks in the top 2% of the 958 ETFs with at least $100 million in assets with 10 years of history.
- QQQ is among the more volatile ETFs: its price swings rank in the bottom 16% of the 1,560 ETFs with at least $100 million in assets, where the top is the calmest.

| Measure | QQQ | Rank |
| --- | --- | --- |
| 1-year return | +17.9% | 560 of 2,485 (top 23%) |
| 3-year return | +106% | 191 of 1,949 (top 10%) |
| 5-year return | +97.2% | 136 of 1,560 (top 9%) |
| 10-year return | +553% | 17 of 958 (top 2%) |
| Volatility, 5 years | 23.0% | 1,309 of 1,560 (top 84%) |
| Sharpe ratio, 5 years | 0.71 | 518 of 1,560 (top 34%) |
| Worst decline, past 10 years | −35.1% | 354 of 951 (top 38%) |

### What has beaten QQQ on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- Nine stocks and 30 ETFs worth at least $500 million sit in the green region: each earned more than QQQ over the past 5 years with smaller price swings. That is 1% of the 3,633 screened. Few investments beat it on both counts.
- Among those with at least half QQQ's swings, DXJ has the best return for its risk: 26.6% a year at 19.1% volatility, 17% less than QQQ's 23.0%, and a Sharpe ratio (return above cash per unit of volatility) of 1.34 against 0.71 for QQQ.
- None of QQQ's popular alternatives made it, but PVAL (US large-cap value) did: 16.1% a year at 15.1% volatility, 34% less than QQQ's 23.0%.

### Is there a better investment than QQQ?

The table below lists investments that beat QQQ over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among QQQ's popular alternatives, SMH and XLK were ahead of QQQ in most short and long periods.
- Looking beyond its popular alternatives, VLUE (US large-cap value) and PVAL (US large-cap value) earned more than QQQ with less volatility over the past 5 years. VLUE returned 15.9% a year at 18.4% volatility, against 14.5% a year at 23.0%.
- Few investments have done better on both counts: only 39 of the 3,633 stocks and funds worth at least $500 million earned more than QQQ with less volatility over the past 5 years, among them NVS, RY and TD.

The 15 strongest of 39 investments that beat QQQ over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with QQQ | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| QQQ: Invesco QQQ Trust, Series 1 (this page) |  | +14.5% | 23.0% | 0.71 | −35.1% | +553% |  |  |
| [RY](https://easycompare.io/research/ry): Royal Bank of Canada | Banks | +17.3% | 18.2% | 0.97 | −40.0% | +352% | 0.44 | Higher return, lower volatility; Higher return in most periods |
| DXJ: WisdomTree Japan Hedged Equity Fund | International Equity | +26.6% | 19.1% | 1.34 | −39.1% | +428% | 0.46 | Higher return, lower volatility; Higher return in most periods |
| [TD](https://easycompare.io/research/td): The Toronto-Dominion Bank | Banks | +15.8% | 20.0% | 0.84 | −42.0% | +310% | 0.42 | Higher return, lower volatility; Higher return in most periods |
| [MO](https://easycompare.io/research/mo): Altria Group, Inc. | Tobacco | +17.8% | 21.4% | 0.88 | −53.7% | +140% | 0.09 | Higher return, lower volatility; Higher return in most periods |
| [NVS](https://easycompare.io/research/nvs): Novartis AG | Pharmaceuticals | +17.1% | 20.7% | 0.87 | −26.8% | +226% | 0.16 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | Gold | +17.7% | 18.9% | 0.96 | −26.4% | +213% | 0.09 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| VLUE: iShares MSCI USA Value Factor ETF | US Large-Cap Value | +15.9% | 18.4% | 0.90 | −39.5% | +286% | 0.72 | Higher return, lower volatility; Higher return in most periods |
| CRAK: VanEck Oil Refiners ETF | Energy | +19.8% | 20.9% | 0.97 | −58.8% | +336% | 0.19 | Higher return, lower volatility; Higher return in most periods |
| [MPLX](https://easycompare.io/research/mplx): MPLX Lp | Oil & Gas Midstream | +23.5% | 18.8% | 1.22 | −75.2% | +350% | 0.25 | Higher return, lower volatility |
| NXTG: First Trust Indxx NextG ETF | Technology | +16.2% | 19.1% | 0.89 | −33.6% | +330% | 0.84 | Higher return, lower volatility; Higher return in most periods |
| FFLC: Fidelity Fundamental Large Cap Core ETF | Broad Market | +15.7% | 16.8% | 0.95 | −19.7% | — | 0.79 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | International Equity | +17.0% | 11.1% | 1.48 | −32.4% | +194% | 0.30 | Higher return, lower volatility |
| [CB](https://easycompare.io/research/cb): Chubb Limited | Property & Casualty Insurance | +15.7% | 20.4% | 0.82 | −42.6% | +248% | 0.02 | Higher return, lower volatility |
| [CM](https://easycompare.io/research/cm): Canadian Imperial Bank of Commerce | Banks | +19.2% | 21.6% | 0.93 | −47.3% | +395% | 0.52 | Higher return, lower volatility |
| [EPD](https://easycompare.io/research/epd): Enterprise Products Partners L.P. | Oil & Gas Midstream | +16.4% | 17.1% | 0.98 | −58.1% | +178% | 0.20 | Higher return, lower volatility |

## QQQ against its popular alternatives

The investments people most often weigh against QQQ, compared period by period and year by year.

### How do QQQ's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Only QQQM was both more rewarding and calmer than QQQ over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, QQQ returned 14.5% a year, more than the S&P 500's 12.7%, with higher volatility (23.0% against 17.1%).

### Has QQQ consistently beaten its popular alternatives?

This section compares QQQ with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- XLK outperformed QQQ in every long-term period and in all but one short-term period, the most consistent record in the group.
- Two of the 21 popular alternatives, XLK and SMH, outperformed QQQ in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- XLK, SPY and QQQM earned more for the risk they took than QQQ (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of QQQ | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| QQQ: Invesco QQQ Trust, Series 1 (this page) | +17.9% | +106% | +97.2% | +553% |  |  | 0.71 |
| [XLK](https://easycompare.io/research/xlk): State Street Technology Select Sector SPDR ETF | +29.3% | +131% | +143% | +767% | 4/5 short-term, 3/3 long-term | all-weather | 0.82 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | +57.8% | +290% | +323% | +1,665% | 3/5 short-term, 3/3 long-term | consistent | 0.97 |
| [SPYG](https://easycompare.io/research/spyg): State Street SPDR Portfolio S&P 500 Growth ETF | +15.8% | +110% | +86.5% | +418% | 2/5 short-term, 1/3 long-term |  | 0.69 |
| VOOG: Vanguard S&P 500 Growth ETF | +15.8% | +110% | +86.0% | +416% | 2/5 short-term, 1/3 long-term |  | 0.69 |
| [IVW](https://easycompare.io/research/ivw): iShares S&P 500 Growth ETF | +15.7% | +109% | +85.3% | +413% | 2/5 short-term, 1/3 long-term |  | 0.68 |
| FDG: American Century Focused Dynamic Growth ETF | +5.4% | +113% | +52.4% | — | 0/5 short-term, 1/3 long-term |  | 0.46 |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | +22.5% | +77.9% | +76.6% | +235% | 4/5 short-term, 0/3 long-term |  | 0.90 |
| QQQJ: Invesco NASDAQ Next Gen 100 ETF | +23.3% | +92.4% | +33.3% | — | 3/5 short-term, 0/3 long-term |  | 0.37 |
| MGK: Vanguard Morningstar Mega Cap Growth ETF | +11.9% | +104% | +88.2% | +464% | 2/5 short-term, 0/3 long-term |  | 0.67 |
| [SCHG](https://easycompare.io/research/schg): Schwab U.S. Large-Cap Growth ETF | +10.4% | +99.2% | +85.4% | +451% | 2/5 short-term, 0/3 long-term |  | 0.67 |
| [VUG](https://easycompare.io/research/vug): Vanguard Morningstar Growth ETF | +10.2% | +100% | +78.6% | +419% | 2/5 short-term, 0/3 long-term |  | 0.63 |
| IUSG: iShares Core S&P U.S. Growth ETF | +15.9% | +107% | +83.7% | +405% | 2/5 short-term, 0/3 long-term |  | 0.68 |
| [SPY](https://easycompare.io/research/spy): State Street SPDR S&P 500 ETF | +15.8% | +89.3% | +81.7% | +321% | 2/5 short-term, 0/3 long-term |  | 0.79 |
| ONEQ: Fidelity Nasdaq Composite Index ETF | +15.9% | +107% | +83.6% | +453% | 1/5 short-term, 0/3 long-term |  | 0.65 |
| QQQE: Direxion NASDAQ-100 Equal Weighted Index ETF | +15.6% | +66.6% | +47.6% | +294% | 1/5 short-term, 0/3 long-term |  | 0.48 |
| QQEW: First Trust Nasdaq-100 Select Equal Weight ETF | +9.9% | +57.7% | +39.1% | +267% | 1/5 short-term, 0/3 long-term |  | 0.42 |
| IWY: iShares Russell Top 200 Growth ETF | +4.7% | +90.1% | +83.8% | +466% | 0/5 short-term, 0/3 long-term |  | 0.67 |
| [VONG](https://easycompare.io/research/vong): Vanguard Russell 1000 Growth ETF | +4.1% | +88.3% | +75.1% | +422% | 0/5 short-term, 0/3 long-term |  | 0.63 |
| [IWF](https://easycompare.io/research/iwf): iShares Russell 1000 Growth ETF | +4.0% | +87.7% | +74.1% | +416% | 0/5 short-term, 0/3 long-term |  | 0.62 |
| [QQQM](https://easycompare.io/research/qqqm): Invesco NASDAQ 100 ETF | +18.0% | +106% | +98.0% | — | 0/5 short-term, 0/3 long-term |  | 0.71 |
| TCHP: T. Rowe Price Blue Chip Growth ETF | +2.4% | +86.0% | +49.8% | — | 0/5 short-term, 0/3 long-term |  | 0.46 |

### How did QQQ do year by year?

This table shows each investment's total return in every full calendar year since 2000, along with where QQQ ranked among its popular alternatives each year.

- Ranked against its popular alternatives each year, QQQ finished in the top quarter in 15 of 25 years and in the bottom quarter in three. In 2025, it ranked 8 of 18.
- QQQ finished ahead of the S&P 500 in 15 of its 26 full calendar years.
- Among its popular alternatives, SMH came out ahead of QQQ most often, in 14 of the 25 years both traded.

| Year | QQQ | SPY |
| --- | --- | --- |
| 2025 | +20.8% | +17.7% |
| 2024 | +25.6% | +24.9% |
| 2023 | +54.9% | +26.2% |
| 2022 | −32.6% | −18.2% |
| 2021 | +27.4% | +28.7% |
| 2020 | +48.6% | +18.3% |
| 2019 | +39.0% | +31.2% |
| 2018 | −0.1% | −4.6% |
| 2017 | +32.7% | +21.7% |
| 2016 | +7.1% | +12.0% |

## Risk and diversification

How QQQ has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were QQQ's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In four of QQQ's five worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after QQQ fell 83.0% from March 2000 to October 2002; it did not regain that peak until February 2015, 12 years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −83.0% | March 24, 2000 | October 9, 2002 | February 20, 2015 | −47.5% | dot-com bust |
| −35.1% | December 27, 2021 | November 3, 2022 | December 13, 2023 | −21.4% | 2022 bear market |
| −28.6% | February 19, 2020 | March 16, 2020 | June 3, 2020 | −29.1% | Covid crash |
| −22.8% | August 29, 2018 | December 24, 2018 | April 12, 2019 | −18.8% | late-2018 sell-off |
| −22.8% | February 19, 2025 | April 8, 2025 | June 24, 2025 | −18.8% |  |

### How did QQQ do in stock market crashes?

This section measures how far QQQ, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- None of its popular alternatives fell less than QQQ in most of the crashes they both traded through.
- QQQ fell further than the S&P 500 in five of the ten crashes it has traded through. The clearest case was the dot-com bust, when QQQ fell 83.0% and the S&P 500 fell 47.5%.

| Crash | Dates | QQQ fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −83.0% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −53.4% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −2.5% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −16.1% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −16.1% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −6.8% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −22.7% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −28.6% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −33.4% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −3.1% | −3.4% |

### How closely does QQQ move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, QQQ captured 118% of the S&P 500's gains in rising months and 102% of its losses in falling months, with a beta of 1.13. It amplified the market's moves in both directions.
- Only SMH and XLK had a higher capture ratio (upside capture divided by downside capture) than QQQ's 1.16, out of 13 popular alternatives with the same record.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| QQQ: Invesco QQQ Trust, Series 1 (this page) | 118% | 102% | 1.13 |
| [XLK](https://easycompare.io/research/xlk): State Street Technology Select Sector SPDR ETF | 128% | 100% | 1.19 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 159% | 108% | 1.46 |
| [SPYG](https://easycompare.io/research/spyg): State Street SPDR Portfolio S&P 500 Growth ETF | 109% | 102% | 1.08 |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | 86.0% | 91.0% | 0.86 |
| MGK: Vanguard Morningstar Mega Cap Growth ETF | 115% | 107% | 1.14 |
| [SCHG](https://easycompare.io/research/schg): Schwab U.S. Large-Cap Growth ETF | 114% | 107% | 1.12 |
| [VUG](https://easycompare.io/research/vug): Vanguard Morningstar Growth ETF | 113% | 108% | 1.13 |
| IUSG: iShares Core S&P U.S. Growth ETF | 109% | 103% | 1.08 |
| ONEQ: Fidelity Nasdaq Composite Index ETF | 115% | 109% | 1.15 |
| QQQE: Direxion NASDAQ-100 Equal Weighted Index ETF | 101% | 105% | 1.06 |
| QQEW: First Trust Nasdaq-100 Select Equal Weight ETF | 101% | 109% | 1.06 |
| IWY: iShares Russell Top 200 Growth ETF | 113% | 102% | 1.09 |
| [VONG](https://easycompare.io/research/vong): Vanguard Russell 1000 Growth ETF | 111% | 104% | 1.10 |

### What diversifies QQQ?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in QQQ into GLD would have cut the portfolio's volatility by 17% over the past 5 years and raised its annual return (+16.3% for QQQ alone, +17.3% for the mix).
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of QQQ over the past 5 years, with correlations of 0.46 or lower, and each still earned a positive 5-year return.
- Among large stocks, CAH, MCK and MPC have moved largely independently of QQQ over the past 5 years, with correlations of 0.18 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with QQQ | 5Y return | Volatility | Sharpe | Rose in QQQ's 6 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.30 | +119% | 11.1% | 1.48 | 1 of 6 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.46 | +225% | 19.1% | 1.34 | 1 of 6 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.37 | +101% | 14.5% | 1.04 | 1 of 6 |
| EWP: iShares MSCI Spain ETF | 0.37 | +140% | 20.3% | 0.97 | 0 of 6 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.09 | +126% | 18.9% | 0.96 | 1 of 6 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.03 | +177% | 25.5% | 0.93 | 2 of 6 |
| AMLP: Alerian MLP ETF | 0.23 | +111% | 18.9% | 0.89 | 1 of 6 |
| EFV: iShares MSCI EAFE Value ETF | 0.42 | +89.0% | 15.9% | 0.88 | 0 of 6 |

## Common questions

### What was QQQ's worst drawdown?

QQQ's deepest decline since it began trading in 1999 was 83.0%, from March 2000 to October 2002. It took about 12 years from the low to climb back to its old high.

### What were QQQ's best and worst years?

Over 26 full calendar years, QQQ's best year was 2023, when it returned 54.9%. Its worst was 2008, with a return of -41.7%.

### Is there a better investment than QQQ?

Among QQQ's popular alternatives, SMH and XLK were ahead of QQQ in most short and long periods. Looking beyond its popular alternatives, VLUE (US large-cap value) and PVAL (US large-cap value) earned more than QQQ with less volatility over the past 5 years. VLUE returned 15.9% a year at 18.4% volatility, against 14.5% a year at 23.0%.

### Is QQQ more volatile than the S&P 500?

Yes. QQQ's volatility over the past 5 years was 23.0%, 1.3 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, QQQ's return lands within 23.0% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is QQQ's Sharpe ratio?

QQQ's Sharpe ratio over the past 5 years was 0.71, against 0.79 for the S&P 500, so QQQ earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is QQQ with the S&P 500?

Over the past 5 years, QQQ's monthly returns had a correlation of 0.92 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against QQQ instead: the lower it is, the more that option would diversify a QQQ holding.

### What are the best alternatives to QQQ?

Of the 21 popular alternatives we compared, two outperformed QQQ in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: XLK and SMH.

### Did QQQ outperform the S&P 500?

QQQ finished ahead of the S&P 500 (SPY) in 15 of 26 full calendar years. In 2025, it returned +20.8%, against +17.7% for the index.

### How did QQQ do in stock market crashes?

QQQ fell less than the S&P 500 (SPY) in three of the ten major crashes it has traded through, and further in five. The clearest case was the dot-com bust, when QQQ fell 83.0% and the S&P 500 fell 47.5%.

### What diversifies QQQ?

These had a low correlation with QQQ over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.30), DXJ (correlation 0.46) and EMLP (correlation 0.37); among large stocks, CAH (correlation 0.18), MCK (correlation 0.02) and MPC (correlation 0.10). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/qqq
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against QQQ live: https://betterthanspy.com/?b=QQQ&utm_source=easycompare&utm_medium=research