ALTL vs QQQ
Pacer Lunt Large Cap Alternator ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | ALTL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $92M | $496.3B | |
| Dividend Yield | 0.95% | 0.44% | |
| Holdings | 102 | 108 | |
| YTD Return | +9.29% | +16.64% | |
| 1Y Return | +20.27% | +27.27% | |
| 3Y Return (annualized) | +10.57% | +25.96% | |
| 5Y Return (annualized) | +2.58% | +14.54% | |
| Volatility (annualized) | 20.0% | 30.6% | |
| Max Drawdown | -31.9% | -83.0% | |
| Fund Family | Pacer ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 24, 2020 | Mar 10, 1999 |
ALTL vs QQQ Performance
Pacer Lunt Large Cap Alternator ETF (ALTL) is a ETF from Pacer ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ALTL returned +20.27% while QQQ returned +27.27%. Year to date, ALTL is up 9.29% versus a gain of 16.64% for QQQ.
Over three years, ALTL compounded at +10.57% per year against +25.96% for QQQ; over five years the annualized figures are +2.58% and +14.54% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs +12.52%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 20.0% for ALTL. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -31.9% for ALTL and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ALTL charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, ALTL currently yields 0.95% against 0.44% for QQQ.
Holdings Overlap
ALTL and QQQ share 31 holdings out of 172 unique holdings combined, representing a 22.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ALTL or QQQ?
ALTL has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, ALTL or QQQ?
Over the past year ALTL returned +20.27% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), ALTL annualized +12.52% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, ALTL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.0% for ALTL. Worst drawdown: ALTL -31.9% vs QQQ -83.0%.
Should I hold both ALTL and QQQ?
ALTL and QQQ have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ALTL and QQQ?
ALTL and QQQ share 31 common holdings with a 22.5% weight overlap. Combined, they hold 172 unique securities.
Which pays a higher dividend, ALTL or QQQ?
ALTL yields 0.95% while QQQ yields 0.44%, so ALTL currently pays the higher dividend yield.
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