The QQQ ETF has outperformed broader markets in late 2025, driven by strong gains in megacap technology stocks, making it a key consideration for investors seeking exposure to innovation-led growth. SPY remains a stable benchmark for overall market exposure.
- QQQ posted a 14.3% YTD return vs. SPY’s 7.8% through December 7, 2025
- QQQ rose 15.2% in Q4 2025, driven by tech and AI-related stocks
- QQQ’s sector weight: 55% technology, 12% financials
- Q4 2025 saw $2.1 billion in net inflows into QQQ, the highest in over 12 months
- SPY’s P/E ratio stands at 18.4, compared to QQQ’s 28.6
- SPY experienced $680 million in net inflows in November 2025
The Nasdaq-100 ETF (QQQ) has delivered a 14.3% year-to-date return as of December 7, 2025, significantly outpacing the S&P 500 ETF (SPY), which posted a 7.8% gain over the same period. This divergence underscores the continued dominance of technology stocks in driving equity market momentum. QQQ’s 15.2% rise in the fourth quarter alone reflects robust investor confidence in leading tech firms, particularly in cloud computing, artificial intelligence, and semiconductors. Meanwhile, SPY has maintained steady performance, serving as a reliable proxy for the broader U.S. equity market. The ETF’s sector weightings highlight its tech-heavy profile, with over 55% of assets allocated to technology, followed by financials at 12%. This concentration has proven advantageous in a rate-cutting environment, where high-growth equities tend to thrive. QQQ’s price-to-earnings ratio of 28.6 as of year-end 2025 is elevated compared to SPY’s 18.4, signaling premium valuations but also strong earnings expectations. Market participants are increasingly favoring QQQ for tactical positioning, with net inflows of $2.1 billion in November 2025—the largest monthly addition in over a year. SPY, while less volatile, saw modest inflows of $680 million during the same period, indicating investors are rotating into growth-oriented assets despite macroeconomic uncertainty. The divergence suggests growing appetite for innovation-driven leadership amid cautious sentiment toward traditional sectors.