Which one is more better the QQQ and SPY?

The choice between QQQ and SPY ultimately depends on your investment goals, risk tolerance, and the specific characteristics of each fund. Here's a comparison to help you decide:

1. Performance: Over the past 10 years, QQQ has outperformed SPY with an annualized return of 18.61% compared to 12.76% for SPY. QQQ also has a higher return over the past year, with a return of 28.40% compared to SPY's 28.08%. However, SPY has a higher year-to-date return as of the latest data.

2. Valuation: QQQ trades at a higher price-to-earnings ratio than SPY, which could indicate a higher growth expectation or a higher risk premium. However, the valuation is still lower than that of many other large-cap growth ETFs.
3. Risk: The correlation between QQQ and SPY is high, which means that having both in your portfolio may not provide additional diversification and could increase risk during market downturns.
4. Fundamentals: QQQ's strong fundamentals, such as higher margins, support its premium valuation. SPY also maintains high margins but has a higher P/E ratio compared to QQQ.
5. Expense Ratio: SPY has a lower expense ratio than QQQ, which could be beneficial for long-term investors looking to minimize costs.
6. Sector Exposure: QQQ has a higher concentration in technology-related sectors, which could be advantageous in a bullish technology market but may also increase risk during sector-specific downturns. SPY has a more diversified sector exposure.

In conclusion, if you are looking for higher growth potential and are willing to accept higher risk, QQQ may be suitable. However, if you prioritize cost efficiency and are comfortable with a more diversified portfolio, SPY might be a better choice. Your decision should also consider your overall investment strategy and risk tolerance.