PALC vs QQQ
Pacer Lunt Large Cap Multi-Factor Alternator ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PALC offers more diversification with 179 holdings.
Side-by-Side Comparison
| Metric | PALC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $220M | $496.3B | |
| Dividend Yield | 1.10% | 0.44% | |
| Holdings | 179 | 108 | |
| YTD Return | +11.67% | +19.68% | |
| 1Y Return | +16.17% | +26.75% | |
| 3Y Return (annualized) | +15.94% | +26.25% | |
| 5Y Return (annualized) | +9.02% | +15.39% | |
| Volatility (annualized) | 17.3% | 30.6% | |
| Max Drawdown | -24.4% | -83.0% | |
| Fund Family | Pacer ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 24, 2020 | Mar 10, 1999 |
PALC vs QQQ Performance
Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) is a ETF from Pacer ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PALC returned +16.17% while QQQ returned +26.75%. Year to date, PALC is up 11.67% versus a gain of 19.68% for QQQ.
Over three years, PALC compounded at +15.94% per year against +26.25% for QQQ; over five years the annualized figures are +9.02% and +15.39% respectively. Across the full 6-year window we track, PALC has the edge at +16.17% annualized vs +13.15%. 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 17.3% for PALC. 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 -24.4% for PALC 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PALC 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, PALC currently yields 1.10% against 0.44% for QQQ.
Holdings Overlap
PALC and QQQ share 44 holdings out of 236 unique holdings combined, representing a 28.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PALC or QQQ?
PALC 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, PALC or QQQ?
Over the past year PALC returned +16.17% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), PALC annualized +16.17% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, PALC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.3% for PALC. Worst drawdown: PALC -24.4% vs QQQ -83.0%.
Should I hold both PALC and QQQ?
PALC and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PALC and QQQ?
PALC and QQQ share 44 common holdings with a 28.1% weight overlap. Combined, they hold 236 unique securities.
Which pays a higher dividend, PALC or QQQ?
PALC yields 1.10% while QQQ yields 0.44%, so PALC currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.