ETF Versus

MDY vs QQQ

State Street SPDR S&P MIDCAP 400 ETF Trust vs Invesco QQQ Trust

Last updated: 2026-04-02

MDY State Street

State Street SPDR S&P MIDCAP 400 ETF Trust (MDY) is an exchange-traded fund issued by State Street that provides exposure to mid-cap U.S. companies balancing growth potential and stability. It charges a moderate expense ratio of 0.24%. The fund offers a moderate dividend yield of 1.15%. Launched in 1995, the fund has a 31-year track record.

AUM: $24.2B ER: 0.24% Yield: 1.15% Since: 1995-05-04
QQQ Invesco

Invesco QQQ Trust (QQQ) is an exchange-traded fund issued by Invesco that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a moderate expense ratio of 0.20%. The fund offers a modest dividend yield of 0.48%. Launched in 1999, the fund has a 27-year track record.

AUM: $407.7B ER: 0.20% Yield: 0.48% Since: 1999-03-10

Quick Verdict

QQQ has a slightly lower expense ratio (0.20% vs 0.24%), saving about $79 per $10,000 over 10 years. Over the past year, QQQ has significantly outperformed with a 22.5% return vs 13.9%. Income investors may prefer MDY for its higher yield (1.1% vs 0.5%).

Key Metrics

Metric MDY QQQ
Expense Ratio 0.24% 0.20%
Dividend Yield 1.1% 0.5%
Fund Family State Street Invesco
Category US Mid Cap US Large Cap Growth

Performance Chart

Indexed to 100 at start (5-year comparison)

75 99 123 147 171 195 2021-04 2022-06 2023-10 2024-12 2026-04
MDY +27.8%
QQQ +76.2%

Performance Comparison

Period MDY QQQ Difference
1 Month -4.04% -3.02% -1.02%
3 Months +1.57% -4.85% +6.42%
6 Months +3.21% -4.00% +7.21%
YTD +1.57% -4.85% +6.42%
1 Year +13.95% +22.53% -8.58%
3 Years +35.56% +82.23% -46.67%
5 Years +27.83% +76.23% -48.40%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period MDY Fees QQQ Fees You Save
$10,000 10 years $475 $396 $79
$10,000 20 years $2,028 $1,696 $332
$10,000 30 years $6,497 $5,443 $1,054
$50,000 10 years $2,375 $1,982 $393
$50,000 30 years $32,483 $27,214 $5,269
$100,000 30 years $64,967 $54,428 $10,539

Risk Metrics

Based on 5 years of daily returns

Metric MDY QQQ
Annualized Volatility 19.8% 22.4%
Max Drawdown -24.5% -35.6%
Sharpe Ratio 0.12 0.42

Dividend Comparison

Metric MDY QQQ
Annual Dividend (per share) $7.12 $2.81
Dividend Yield 1.15% 0.48%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 9 holdings overlap (0% overlap in top holdings)

MDY Top Holdings

NameWeight
Ciena Corp102.57%
Coherent Corp90.18%
Lumentum Holdings Inc81.25%
Flex Ltd69.47%
Twilio Inc67.05%
United Therapeutics Corp65.23%
Pure Storage Inc65.05%
Casey's General Stores Inc63.89%
Curtiss-Wright Corp63.20%
Illumina Inc62.31%

QQQ Top Holdings

NameWeight
NVIDIA Corp.903.46%
Apple Inc.800.82%
Microsoft Corp.716.56%
Amazon.com, Inc.491.91%
Tesla, Inc.396.59%
Meta Platforms, Inc.386.46%
Alphabet Inc.338.25%
Broadcom Inc.325.82%
Palantir Technologies Inc.223.47%

Which One Should You Choose?

Choose QQQ if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose QQQ if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose MDY if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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