PAI vs QQQ
Western Asset Investment Grade Income Fund Inc. vs Invesco QQQ Trust, Series 1
Which is better, PAI or QQQ?
Long Term Mid Quality against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PAI | QQQ |
|---|---|---|
| Expense Ratio | 0.73% | 0.18%Best |
| AUM | $122M | $483.5B |
| Dividend Yield | 4.90% | 0.44% |
| Holdings | 476 | 107 |
| YTD Return | -3.78% | +15.18%Best |
| 1Y Return | -4.87% | +19.65%Best |
| 3Y Return (annualized) | +6.03% | +24.60%Best |
| 5Y Return (annualized) | -2.63% | +13.94%Best |
| Volatility (annualized) | 13.0%Best | 30.6% |
| Max Drawdown | -45.9%Best | -83.0% |
| $10,000 over 5 years | $8,752 | $19,204Best |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Growth |
| Inception | Mar 22, 1973 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 1999 to Sep 15, 2026 (27.5 years).
PAI vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
PAI vs QQQ Performance
Western Asset Investment Grade Income Fund Inc. (PAI) is an ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PAI returned -4.87% while QQQ returned +19.65%. Year to date, PAI is down 3.78% versus a gain of 15.18% for QQQ.
Over three years, PAI compounded at +6.03% per year against +24.60% for QQQ; over five years the annualized figures are -2.63% and +13.94% respectively. Across the full 28-year window we track, QQQ has the edge at +12.95% annualized vs +0.03%.
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 13.0% for PAI. 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 -45.9% for PAI and -83.0% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.21. They move largely independently of each other.
Fees and Cost Over Time
PAI charges 0.73% per year while QQQ charges 0.18%. On a $10,000 position that is $73 vs $18 annually, a gap of $55 per year that compounds over a long holding period. On income, PAI currently yields 4.90% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 7 holdings in PAI and 102 in QQQ, totalling 1.2% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 7 positions we hold weights for in PAI and 102 in QQQ, against full books of 476 and 107.
You are not choosing between two funds in isolation.
Whichever of PAI and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PAI or QQQ?
PAI has an expense ratio of 0.73% while QQQ charges 0.18%. QQQ is the cheaper option, by $55 a year on a $10,000 investment.
Which performed better, PAI or QQQ?
Over the past year PAI returned -4.87% vs +19.65% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (28 years), PAI annualized +0.03% vs +12.95% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.0% for PAI. Worst drawdown: PAI -45.9% vs QQQ -83.0%.
Should I hold both PAI and QQQ?
PAI and QQQ have a monthly-return correlation of 0.21, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, PAI or QQQ?
PAI yields 4.90% while QQQ yields 0.44%, so PAI currently pays the higher dividend yield.
Is QQQ better than PAI?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.