Invesco QQQ Trust with 16.89% Annual Return – High Costs in ETF Comparison
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Key Takeaways
- The Invesco QQQ Trust achieved an annual return of 16.89 percent as of May 9, 2026, with a fund volume of $493.99 billion.
- With an expense ratio of 0.18 percent, QQQ is significantly higher than the VOO ETF at 0.03 percent and SPY at 0.09 percent.
- QQQ outperformed the S&P 500 in seven of the last ten years, but with a beta of 1.23 is 23 percent more volatile than the overall market.
- The price-to-earnings ratio of 32.44 and dividend yield of 0.38 percent reflect the growth-oriented tech stocks of the Nasdaq-100.
- On May 9, 2026, an average of 47.1 million QQQ shares traded hands, making the ETF one of the most traded globally.
The Invesco QQQ Trust (QQQ) achieved an annual return of 16.89 percent as of May 9, 2026, with a fund volume of $493.99 billion. The ETF tracks the Nasdaq-100 index and provides exposure to the 100 largest non-financial companies on the Nasdaq exchange.
Cost structure compared to competitors
With an expense ratio of 0.18 percent, QQQ is significantly higher than comparable broad-based ETFs. An analysis published on April 14, 2026 shows: The VOO ETF (Vanguard S&P 500) charges only 0.03 percent, while the SPDR S&P 500 ETF Trust (SPY) charges 0.09 percent. The cost advantage of cheaper alternatives can have a substantial impact on net returns over longer investment horizons through the compounding effect.
However, the higher fees come with more targeted exposure: QQQ focuses on technology and growth-oriented Nasdaq stocks, while VOO and SPY track the broader S&P 500.
Historical performance and volatility
QQQ outperformed the S&P 500 in seven of the last ten years (as of March 31, 2026). This outperformance comes with higher volatility: The beta of 1.23 (based on monthly data over five years, as of May 9, 2026) shows that the ETF is 23 percent more volatile than the overall market.
A beta of 1.0 corresponds to market volatility. Values above that signal stronger price fluctuations both up and down – a factor investors should consider when constructing their portfolios.
Valuation and fundamentals
As of May 9, 2026, the fund had the following metrics:
- Net Asset Value (NAV): $716.09
- Price-to-Earnings Ratio (P/E): 32.44 (based on the last twelve months)
- Dividend yield: 0.38 percent
The P/E ratio of 32.44 is significantly above the historical average of broader market indices and reflects the growth-oriented tech stocks that dominate the Nasdaq-100. The low dividend yield is typical of growth-oriented companies that reinvest profits rather than distribute them.
Liquidity and trading volume
QQQ ranks among the most traded ETFs globally. On May 9, 2026, an average of 47.1 million shares traded hands. This high liquidity results in tight bid-ask spreads, which is particularly important for active traders and institutional investors.
The ability to hold QQQ in various account types – including individual accounts, joint accounts, IRAs (Individual Retirement Accounts), SEP accounts, and employer-sponsored retirement plans – makes the fund accessible to different investor groups.
Index composition and sector focus
The Nasdaq-100 index excludes financial companies and focuses on the 100 largest non-financial stocks on the Nasdaq. This results in sector-specific weighting with a strong focus on technology, consumer discretionary, and healthcare – in contrast to broad diversification across all economic sectors.
Investors thus gain concentrated exposure to fast-growing industries but forgo the stabilizing effect of more defensive sectors such as utilities or consumer staples.