The Invesco QQQ Trust, Series 1 ETF (QQQ 1.72%) and the iShares Core S&P 500 ETF (IVV 1.54%) are both giants in the U.S. equity ETF space, but they serve different purposes.
QQQ tracks the NASDAQ-100, concentrating on the largest non-financial stocks — mostly in tech. IVV, on the other hand, tracks the S&P 500 and covers the full spectrum of large-cap U.S. companies.
This comparison highlights where their costs, returns, risk, and sector focus diverge, helping investors determine which is the best fit for their portfolio.
Snapshot (cost & size)
| Metric | QQQ | IVV |
|---|---|---|
| Issuer | Invesco | iShares |
| Expense ratio | 0.18% | 0.03% |
| 1-yr return (as of March 2, 2026) | 19.65% | 15.48% |
| Dividend yield | 0.45% | 1.16% |
| Beta (5Y monthly) | 1.12 | 1.00 |
| AUM | $412 billion | $764 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
IVV is much more affordable than QQQ, with an expense ratio of just 0.03% compared to QQQ’s 0.18%. IVV also offers a significantly higher yield, appealing to investors who are conscious of fees or seeking additional dividend income.
Performance & risk comparison
| Metric | QQQ | IVV |
|---|---|---|
| Max drawdown (5 y) | -35.12% | -24.52% |
| Growth of $1,000 over 5 years | $1,879 | $1,763 |
What's inside
IVV offers exposure to the full S&P 500, with 503 holdings. Technology is its largest sector, making up 34% of assets, followed by financials and communication services, each at roughly 12%.
Its top positions include Nvidia, Apple, and Microsoft. With a fund age of nearly 26 years, IVV is a long-established, broad-market vehicle for U.S. equity exposure.
QQQ, in contrast, holds just 101 stocks and is dominated by technology at 51%, with communication services and consumer cyclical sectors rounding out most of the rest. Its three largest holdings mirror IVV’s, but QQQ’s narrower focus results in a heavier concentration.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
The main difference between IVV and QQQ comes down to breadth. IVV is a broad-market fund that tracks the S&P 500, while QQQ offers a more targeted approach to growth stocks.
IVV contains roughly five times as many stocks as QQQ, providing greater diversification. Its smaller focus on tech can also result in less short-term volatility, as the tech industry is often hit hardest during downturns.
QQQ’s biggest advantage is its growth potential. Because it’s narrower than IVV and allocates a larger share of its portfolio to tech stocks, it has a history of earning higher-than-average returns. It’s outperformed IVV in both one- and five-year total returns, but it also has a higher beta and max drawdown, signalling more significant price fluctuations.
Both ETFs can be smart investments, but the right one will depend on your goals. Investors seeking greater diversification and more protection against volatility may prefer IVV’s S&P 500 stability, while those looking for more earning potential might opt for QQQ.
