PAPI vs QQQ
Parametric Equity Premium Income ETF vs Invesco QQQ Trust, Series 1
Which is better, PAPI or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. PAPI is less concentrated, with 7.7% of the fund in its ten largest positions against 46.5%.
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 | PAPI | QQQ |
|---|---|---|
| Expense Ratio | 0.29% | 0.18%Best |
| AUM | $473M | $483.5B |
| Dividend Yield | 7.35% | 0.44% |
| Holdings | 193 | 107 |
| YTD Return | +10.55% | +15.21%Best |
| 1Y Return | +13.79% | +19.78%Best |
| 3Y Return (annualized) | +11.10% | +24.58%Best |
| 5Y Return (annualized) | - | +13.93% |
| Volatility (annualized) | 10.2%Best | 17.5% |
| Max Drawdown | -14.3%Best | -22.8% |
| $10,000 over 2.9 years | $13,570 | $19,841Best |
| Top 10 Weight | 7.7%Best | 46.5% |
| Fund Family | Parametric | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Oct 16, 2023 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Oct 19, 2023 to Sep 16, 2026 (2.9 years).
PAPI 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 covers the 2.9 years both funds cover.
PAPI vs QQQ Performance
Parametric Equity Premium Income ETF (PAPI) is an ETF from Parametric and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PAPI returned +13.79% while QQQ returned +19.78%. Year to date, PAPI is up 10.55% versus a gain of 15.21% for QQQ.
Over three years, PAPI compounded at +11.10% per year against +24.58% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 10.2% for PAPI. 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 -14.3% for PAPI and -22.8% 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 -0.04. They move largely independently of each other.
Fees and Cost Over Time
PAPI charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, PAPI currently yields 7.35% against 0.44% for QQQ.
Holdings Overlap
10.2% of PAPI's money is in holdings QQQ also owns. 20.7% of QQQ's money is in holdings PAPI also owns.
QQQ and PAPI share little of their money.
19 positions in common, counted across the 188 positions we hold weights for in PAPI and 102 in QQQ, against full books of 193 and 107.
What only one of them owns
Our book lists 77 positions for QQQ that do not appear in our book for PAPI (76.8% of the fund), and 163 for PAPI that do not appear in QQQ (86.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PAPI | Weight in QQQ | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 0.66% | 5.76% | 5.10% |
| GOOGLAlphabet Inc,class A | 0.53% | 3.36% | 2.83% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.54% | 2.10% | 1.56% |
| COSTCostco Wholesale Corp. | 0.51% | 1.84% | 1.33% |
| TXNTexas Instrument Inc | 0.47% | 1.12% | 0.65% |
| LINLinde Plc Ordinary Shares | 0.47% | 1.00% | 0.53% |
| PEPPepsico Inc. | 0.52% | 0.83% | 0.31% |
| GILDGilead Sciences | 0.59% | 0.72% | 0.13% |
| ADIAnalog Devices, Inc. | 0.48% | 0.81% | 0.33% |
| QCOMQualcomm Inc. | 0.52% | 0.73% | 0.21% |
20.7% of QQQ is already inside PAPI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PAPI or QQQ?
PAPI has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option, by $11 a year on a $10,000 investment.
Which performed better, PAPI or QQQ?
Over the past year PAPI returned +13.79% vs +19.78% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAPI or QQQ?
QQQ has been the more volatile fund at 17.5% annualized versus 10.2% for PAPI. Worst drawdown: PAPI -14.3% vs QQQ -22.8%.
Should I hold both PAPI and QQQ?
PAPI and QQQ have a monthly-return correlation of -0.04, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PAPI and QQQ?
20.7% of QQQ's money is in holdings PAPI also owns. 20.7% of QQQ's is in holdings PAPI also owns. They hold 19 positions in common, counted across the 188 positions we hold weights for in PAPI and 102 in QQQ.
Which pays a higher dividend, PAPI or QQQ?
PAPI yields 7.35% while QQQ yields 0.44%, so PAPI currently pays the higher dividend yield.
Is QQQ better than PAPI?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. PAPI is less concentrated, with 7.7% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.