Too Many People Just Buy SPY, These Are The ETFs I’d Own Instead

The exchange-traded fund industry is booming right now. Investors are flocking towards ETFs, and they’ve become one of the most important parts of individual portfolios. With over 4,000 U.S.-listed ETFs, it can become overwhelming to choose one. There’s explosive growth in the market, and ETFs look like a promising investment. The first U.S.-listed ETF, the SPDR S&P 500 ETF (NYSEARCA:SPY), was launched in 1996 and continues to dominate the market. It kicked off the ETF era and has remained one of the biggest players. 

SPY has $708.62 billion in assets under management and invests in 500 stocks. Many investors swear by SPY and hold it for the long term. However, I believe the market is changing, and there are other alternatives worth considering. ETF issuers are catering to the Gen Z investors who are looking for yield-focused funds with low risk. I’d recommend investing in Invesco QQQ Trust (NASDAQ:QQQ), iShares Core S&P 500 ETF (NYSE:IVV), and International Dividend Appreciation ETF (NASDAQ: VIGI) instead of SPY. Here’s why. 

Invesco QQQ Trust

The Invesco QQQ Trust could be a smart investing decision today. This ETF tracks the Nasdaq-100 Index and holds 100 stocks. It was launched in 1999 and has an expense ratio of 0.20%. The fund has generated a cumulative 10-year return of 486%.

QQQ is heavily tech-focused and invests 64% of the portfolio in the sector. This is followed by 18% in consumer discretionary and 4.21% in healthcare. Its top 10 holdings form 53% of the fund and include the Magnificent Seven, such as Nvidia, Apple, Microsoft, Amazon, Alphabet, Tesla, and Meta Platforms. 

QQQ holds the who’s who of the tech world, and these leading businesses have driven the market higher. These are gigantic business owners who are building new infrastructure for the economy, and QQQ gives access to the best of the business. 

In 2025, the ETF has gained 22.35% and is exchanging hands for $624. I believe the fund will provide above-average returns and exposure to the best tech stocks in the industry. 

iShares Core S&P 500 ETF

The iShares Core S&P 500 ETF tracks the S&P 500 index and invests in the 500 largest U.S. stocks based on the market capitalization. It has a yield of 1.04% and an expense ratio of 0.03%. 

IVV is also a tech-heavy fund with 34.85% allocation to the sector, followed by 13.06% in the financial sector and 10.73% in the communication industry. Its top 10 holdings are similar to QQQ, with the Magnificent Seven at the top. These include Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and Tesla. 

IVV has generated a total return of 94.85% in 3 years and 113.98% in five years. The fund is very similar to SPY and offers roughly the same yield. However, it has a lower expense ratio as compared to SPY. 

The fund avoids currency hedges and leverages, ensuring there are no surprises for investors. Since it tracks the S&P 500, it holds the largest U.S. stocks and can offer stability in the long run. IVV has gained 16.96% in 2025 and is exchanging hands for $687.

Vanguard International Dividend Appreciation Index Fund 

The Vanguard International Dividend Appreciation Index Fund ETF aims to track the performance of the S&P Global Ex-U.S. Dividend Growers Index. It is a passively managed fund and invests in large-cap stocks from the developed and emerging markets with a history of growing dividends each year. VIGI has a yield of 1.85%. 

The fund sets itself apart by investing in the top dividend stocks across the world, offering ultimate diversification. VIGI has an expense ratio of 0.10% and holds 334 stocks. The ETF has paid a quarterly dividend of $0.36. 

It invests 41.90% in Europe, 33.50% in the Pacific and 17% in North America. Country-wise, it invests 29.30% in Japan, 17% in Canada, and 15.90% in Switzerland. Its top 10 stocks include Royal Bank of Canada, Nestle SA, Hitachi Ltd., Roche Holding AG, and Reliance Industries Ltd. The top 10 holdings make up 34.88% of the fund. 

It has generated a 3-year cumulative return of 35.30% and a 5-year return of 36.25%. VIGI has gained 13.38% in 2025 and is exchanging hands for $90.57. The fund gives access to the top blue chip international stocks at low risk.