# QQQ Outperforms SPY with $12,000 Gain

> QQQ's 16.1% annualized return over 20 years beats SPY's 11% but comes with higher risk.
- Title: QQQ Outperforms SPY with $12,000 Gain · Kiplinger | Shortify
- Summary: QQQ's 16.1% annualized return over 20 years beats SPY's 11% but comes with higher risk. QQQ grew $1,000 to $20,000 in 20 years versus SPY's $8,000, but QQQ…
- Keywords: qqq, spy, s&p 500, etf, tech stocks, investing, interest rates, Outperforms, 000, Gain, Kiplinger
- Source: Kiplinger — https://kiplinger.com/what-1000-invested-in-qqq-etf-spy-etf-is-worth-now
- Published: 2026-11-01T16:30:00+00:00
- Read time: 1 min
- Topics: qqq, spy, s&p 500, etf, tech stocks, investing, interest rates
## QQQ's Tech Focus
The Invesco QQQ Trust holds the 100 largest nonfinancial stocks on Nasdaq.
## QQQ's Top Holdings
Nvidia, Apple, Microsoft, Micron Technology and Amazon.com make up 30% of QQQ's assets.
## QQQ vs SPY Performance
QQQ grew $1,000 to $20,000 in 20 years versus SPY's $8,000, with 16.1% annualized return.
## Risk Premium
QQQ dropped 36% when interest rates rose, while SPY fell 25%.
## Tech Dominance
Technology and communications stocks account for almost 48% of the S&P 500.
## Financial Sector Weakness
Financial stocks make up 12% of the S&P 500, but QQQ excludes them.
## Risk Warning
QQQ's outperformance comes with higher risk, especially if AI leads to a market bubble burst.
## Key takeaway

QQQ grew $1,000 to $20,000 in 20 years versus SPY's $8,000, but QQQ dropped 36% when interest rates rose.