PABU vs QQQ
iShares Paris-Aligned Climate Optimized MSCI USA ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
PABU has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PABU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $2.6B | $496.3B | |
| Dividend Yield | 0.94% | 0.44% | |
| Holdings | 97 | 108 | |
| YTD Return | +8.53% | +16.64% | |
| 1Y Return | +15.90% | +27.27% | |
| 3Y Return (annualized) | +18.80% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 16.6% | 30.6% | |
| Max Drawdown | -20.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 8, 2022 | Mar 10, 1999 |
PABU vs QQQ Performance
iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PABU returned +15.90% while QQQ returned +27.27%. Year to date, PABU is up 8.53% versus a gain of 16.64% for QQQ.
Over three years, PABU compounded at +18.80% per year against +25.96% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +12.65%. 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 16.6% for PABU. 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 -20.8% for PABU 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
PABU charges 0.10% per year while QQQ charges 0.18%. On a $10,000 position that is $10 vs $18 annually, a gap of $8 per year that compounds over a long holding period. On income, PABU currently yields 0.94% against 0.44% for QQQ.
Holdings Overlap
PABU and QQQ share 30 holdings out of 165 unique holdings combined, representing a 45.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PABU or QQQ?
PABU has an expense ratio of 0.10% while QQQ charges 0.18%. PABU is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, PABU or QQQ?
Over the past year PABU returned +15.90% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), PABU annualized +12.65% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PABU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.6% for PABU. Worst drawdown: PABU -20.8% vs QQQ -83.0%.
Should I hold both PABU and QQQ?
PABU and QQQ have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between PABU and QQQ?
PABU and QQQ share 30 common holdings with a 45.3% weight overlap. Combined, they hold 165 unique securities.
Which pays a higher dividend, PABU or QQQ?
PABU yields 0.94% while QQQ yields 0.44%, so PABU currently pays the higher dividend yield.
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