Here’s how these two ETFs performed over the past 5 years:Īs the saying goes “historical results does not guarantee future performance”. ![]() ![]() 1) PerformanceĪs mentioned above, the different underlying index could result in varying outcomes for investors of the QQQ and SPY. If you’re considering buying either ETFs, here’re 6 key differences between QQQ and SPY that you must know in order to select the better ETF that suits your investment goals. However, it’s important to note that the concentration of its holdings in a tech sector can also make the fund more volatile and subject to greater risks. QQQ is a popular choice for investors who want exposure to the technology sector and other high-growth companies. This gives it a heavier weighting towards technology and internet-related companies like Apple, Microsoft, Amazon, Facebook, Google, and Tesla. The NASDAQ-100 index is a market-cap weighted index that includes 100 of the largest non-financial companies listed on the NASDAQ stock exchange.Here’s what you need to know about the QQQ ETF in a nutshell: Here are some key facts about the Invesco QQQ Trust: SPY is a popular choice for investors who want exposure to the broad US stock market, as it provides diversified exposure to 500 large-cap companies across a variety of industries. The S&P 500 index is also often used as a benchmark for other US stock funds and portfolios.While it gives you exposure to the best companies listed in the US, this also means that the performance of SPY is heavily influenced by the performance of large-cap companies. The S&P 500 index is a market-capitalization weighted index that includes 500 large-cap US stocks like Apple, Microsoft, Amazon, and Facebook.SPY is an exchange-traded fund, which means it trades like a stock on a stock exchange throughout the trading day.Here’s what you need to know about the SPY ETF in a nutshell: SPY is a passively managed ETF that tracks the S&P 500 index, you can read about the popular S&P 500 ETFs and their differences here. Here are some key facts about the SPDR S&P 500 ETF Trust: ![]() These ETFs give you exposure to a wide range of stocks from leading companies such as Apple, Microsoft, Amazon and Alphabet Inc., allowing you to diversify your portfolios with ease.īut which should you choose and what are the differences between QQQ and SPY? Let’s explore these US index ETFs and help you make a better investment decision. Among the 6,340 analysts providing ratings on its 504 holdings, 59.67% have given a Buy rating, 34.94% have assigned a Hold rating, and 5.39% have given a Sell rating.If you’re researching your options to invest in the US markets, you’ll probably have come across QQQ and SPY. Further, the average SPY stock price target of $482.85 implies 8.9% upside potential. SPY has a Moderate Buy consensus rating on TipRanks. Is SPY Stock a Buy, According to Analysts? ![]() Moreover, The SPY ETF enjoys bullish blogger sentiment and Positive news sentiment on TipRanks. Our data shows that about 8.3% of TipRank’s retail investors changed their holdings of the SPY in the last 30 days. The stock has a Positive signal from retail investors. It is worth highlighting that more than 50% of the holdings boast an Outperform Smart Score (i.e., a score of 8 or higher). Favorable Smart ScoreĪccording to TipRanks’ Smart Score System, SPY has a Smart Score of 8 out of 10, which indicates that the ETF could outperform the broader market over the long term. Also, it eliminates the need for individual stock research, analysis, and portfolio management. Lastly, the diversification offered by the ETF allows investors convenient access to the stock market. Moreover, SPY pays a 1.47% annual dividend yield, which enhances investors’ returns over the long run. Remarkably, the ETF has delivered an average annualized return of 12.1% in the past decade as of March 2023.
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