PAVE vs QQQ

PAVE vs QQQ

Which is better, PAVE or QQQ?

Mid Cap Blend against Large Cap Growth.

QQQ has a lower expense ratio. PAVE led over 5Y, QQQ over 1Y, 3Y and the full window. PAVE is less concentrated, with 31.7% of the fund in its ten largest positions against 46.5%.

Lower Fees: QQQHigher Returns: splitLess Concentrated: PAVE

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

MetricPAVEQQQ
Expense Ratio0.47%0.18%Best
AUM$13.3B$483.5B
Dividend Yield0.55%0.44%
Holdings102107
YTD Return+7.98%+15.21%Best
1Y Return+13.49%+19.78%Best
3Y Return (annualized)+19.87%+24.58%Best
5Y Return (annualized)+15.54%Best+13.93%
Volatility (annualized)22.8%19.5%Best
Max Drawdown-44.1%-35.1%Best
$10,000 over 5 years$20,590Best$19,195
Top 10 Weight31.7%Best46.5%
Fund FamilyGlobal X by mirae AssetInvesco (US)
CategoryEquityEquity
StyleMid Cap BlendLarge Cap Growth
InceptionMar 6, 2017Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: Mar 8, 2017 to Sep 16, 2026 (9.5 years).

PAVE 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 9.5 years both funds cover.

PAVE vs QQQ Performance

Global X US Infrastructure Development ETF (PAVE) is an ETF from Global X by mirae Asset and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PAVE returned +13.49% while QQQ returned +19.78%. Year to date, PAVE is up 7.98% versus a gain of 15.21% for QQQ.

Over three years, PAVE compounded at +19.87% per year against +24.58% for QQQ; over five years the annualized figures are +15.54% and +13.93% respectively. Across the full 10-year window we track, QQQ has the edge at +19.75% annualized vs +14.94%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PAVE has been the more volatile fund, with annualized monthly volatility of 22.8% compared with 19.5% for QQQ. 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 -44.1% for PAVE and -35.1% 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PAVE charges 0.47% per year while QQQ charges 0.18%. On a $10,000 position that is $47 vs $18 annually, a gap of $29 per year that compounds over a long holding period. On income, PAVE currently yields 0.55% against 0.44% for QQQ.

Holdings Overlap

PAVE already in QQQ6.3%
QQQ already in PAVE0.7%

6.3% of PAVE's money is in holdings QQQ also owns. 0.7% of QQQ's money is in holdings PAVE also owns.

PAVE and QQQ share little of their money.

2 positions in common, counted across the 100 positions we hold weights for in PAVE and 102 in QQQ, against full books of 102 and 107.

What only one of them owns

Our book lists 94 positions for QQQ that do not appear in our book for PAVE (96.9% of the fund), and 95 for PAVE that do not appear in QQQ (88.9%).

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

StockWeight in PAVEWeight in QQQDifference
FASTFastenal Co.3.38%0.25%3.13%
CSXCsx Corp.2.95%0.42%2.53%

You are not choosing between two funds in isolation.

Whichever of PAVE and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

PAVEQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, PAVE or QQQ?

PAVE has an expense ratio of 0.47% while QQQ charges 0.18%. QQQ is the cheaper option, by $29 a year on a $10,000 investment.

Which performed better, PAVE or QQQ?

Over the past year PAVE returned +13.49% vs +19.78% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), PAVE annualized +14.94% vs +19.75% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PAVE or QQQ?

PAVE has been the more volatile fund at 22.8% annualized versus 19.5% for QQQ. Worst drawdown: PAVE -44.1% vs QQQ -35.1%.

Should I hold both PAVE and QQQ?

PAVE and QQQ have a monthly-return correlation of 0.71, 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 PAVE and QQQ?

6.3% of PAVE's money is in holdings QQQ also owns. 0.7% of QQQ's is in holdings PAVE also owns. They hold 2 positions in common, counted across the 100 positions we hold weights for in PAVE and 102 in QQQ.

Which pays a higher dividend, PAVE or QQQ?

PAVE yields 0.55% while QQQ yields 0.44%, so PAVE currently pays the higher dividend yield.

Is QQQ better than PAVE?

QQQ has a lower expense ratio. PAVE led over 5Y, QQQ over 1Y, 3Y and the full window. PAVE is less concentrated, with 31.7% 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.