The Invesco QQQ and SPY stock prices have done well this year. The two popular ETFs have jumped by more than 25% this year. In the past five years, the QQQ stock price has surged by more than 240% while the SPY has jumped by more than 120%. Now, which is a better fund to buy as the Fed starts its hawkish policies?
QQQ vs SPY
Invesco QQQ is one of the biggest and most popular ETFs in the world today. QQQ has more than $205 billion in assets and a dividend yield of about 0.45%. It tracks the Nasdaq 100 index, which tracks the biggest tech companies in the United States.
The SPY ETF, tracks the S&P 500 index and has more than $424 billion in assets and has a dividend yield of about 1.22%. The biggest companies in the ETF are all tech firms like Apple, Microsoft, and Google. Still, unlike the QQQ fund, it is more diverse and has more sectors like finance, energy, and consumer discretionary.
The SPY fund has jumped sharply this year because of several reasons. First, financial stocks like Goldman Sachs and Morgan Stanley have done well as investors wait for the upcoming rate hikes. At the same time, energy stocks have risen sharply because of the rising oil and gas prices.