Nasdaq 100 (QQQ) vs S&P 500 (SPY) Since 2020: Growth Tilt vs the Broad Market
QQQ · SPY · Since 2020 · $1,000 split across each
The most common real decision an index investor faces is not which stock to pick, it is how much of a growth tilt to take. QQQ (the Nasdaq 100) is the S&P 500 with the tech names turned up and the rest turned down. Starting in 2020 captures the AI-era divergence between the two.
This is the honest version of the "should I just buy the Nasdaq" question. QQQ has beaten the S&P 500 over this window, but it did so with bigger drawdowns, and the years when it lagged were exactly the years a nervous investor was most tempted to switch.
What the chart shows
QQQ beat the S&P 500 over the window
From a 2020 start, the Nasdaq 100 finished ahead of the S&P 500, driven by the same megacap tech and AI names that dominate both indexes but weigh more heavily in QQQ. The growth tilt paid off over this particular decade.
The bigger return came with bigger drawdowns
QQQ fell harder in the 2022 selloff, down more than the S&P 500 from peak to trough. The extra return is compensation for extra volatility, not a free lunch. An investor who sold QQQ at the 2022 low locked in the worst of that trade.
They are more similar than they look
The two indexes share most of their top holdings, so they move together most of the time. The divergence is a matter of degree: QQQ is a leveraged bet on the same megacaps, not a different portfolio. When those names lead, QQQ wins; when they lag, it loses.
Concentration cuts both ways
Both indexes have become unusually concentrated in a handful of megacap names. That concentration drove the outperformance and is also the main risk: if the largest names stumble, QQQ has more to lose. The S&P 500 spreads the same bet a little thinner. Dividends, not shown here, favor SPY slightly.
Frequently asked questions
Is QQQ better than SPY?
Over this window since 2020, QQQ delivered a higher return, but with larger drawdowns. "Better" depends on risk tolerance and time horizon, which is a personal question this general comparison does not answer. The interactive tool shows both the return and the ride.
What is the difference between QQQ and SPY?
SPY tracks the S&P 500 (about 500 large US companies across all sectors). QQQ tracks the Nasdaq 100 (the largest non-financial Nasdaq companies, heavily weighted to technology). QQQ is essentially a growth-tilted, tech-concentrated version of the same large-cap US market.
Why does QQQ fall harder in downturns?
Its heavier weighting to high-growth technology stocks, which are more sensitive to interest rates and sentiment. When rates rose in 2022, QQQ fell more than the broader S&P 500. The higher return over the full window came with that higher volatility.
What about ARKK and other growth funds?
ARKK and similar active growth funds are not in this dataset. QQQ is the most widely held growth-tilted index and the cleanest broad-vs-growth comparison against the S&P 500 available here. These figures are price-only.
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For informational and educational purposes only. Not financial advice. Past performance does not guarantee future results. All calculations are based on split-adjusted closing prices from Yahoo Finance and do not account for dividends, taxes, or trading fees. See our methodology and full disclaimer.