FEBP vs QQQ
PGIM S&P 500 Buffer 12 ETF - February 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 103 holdings.
Side-by-Side Comparison
| Metric | FEBP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $25M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 7 | 108 | |
| YTD Return | +8.93% | +18.31% | |
| 1Y Return | +15.04% | +25.37% | |
| 3Y Return (annualized) | - | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 6.5% | 30.6% | |
| Max Drawdown | -12.1% | -83.0% | |
| Fund Family | PGIM Investments | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 31, 2024 | Mar 10, 1999 |
FEBP vs QQQ Performance
PGIM S&P 500 Buffer 12 ETF - February (FEBP) is a ETF from PGIM Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FEBP returned +15.04% while QQQ returned +25.37%. Year to date, FEBP is up 8.93% versus a gain of 18.31% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 6.5% for FEBP. 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 -12.1% for FEBP 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FEBP charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, FEBP currently yields 0.00% against 0.41% for QQQ.
Frequently Asked Questions
Which is cheaper, FEBP or QQQ?
FEBP has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, FEBP or QQQ?
Over the past year FEBP returned +15.04% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), FEBP annualized +13.54% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, FEBP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.5% for FEBP. Worst drawdown: FEBP -12.1% vs QQQ -83.0%.
Should I hold both FEBP and QQQ?
FEBP and QQQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FEBP or QQQ?
FEBP yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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