PBDC vs QQQ
Putnam BDC Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PBDC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 13.49% | 0.18% | |
| AUM | $314M | $496.3B | |
| Dividend Yield | 11.60% | 0.44% | |
| Holdings | 28 | 108 | |
| YTD Return | -3.96% | +17.07% | |
| 1Y Return | -7.15% | +26.39% | |
| 3Y Return (annualized) | +7.12% | +26.08% | |
| 5Y Return (annualized) | - | +15.18% | |
| Volatility (annualized) | 14.3% | 30.6% | |
| Max Drawdown | -20.5% | -83.0% | |
| Fund Family | Putnam Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 29, 2022 | Mar 10, 1999 |
PBDC vs QQQ Performance
Putnam BDC Income ETF (PBDC) is a ETF from Putnam Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PBDC returned -7.15% while QQQ returned +26.39%. Year to date, PBDC is down 3.96% versus a gain of 17.07% for QQQ.
Over three years, PBDC compounded at +7.12% per year against +26.08% for QQQ. Across the full 4-year window we track, PBDC has the edge at +13.56% annualized vs +13.05%. 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 14.3% for PBDC. 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 -20.5% for PBDC 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PBDC charges 13.49% per year while QQQ charges 0.18%. On a $10,000 position that is $1349 vs $18 annually, a gap of $1331 per year that compounds over a long holding period. On income, PBDC currently yields 11.60% against 0.44% for QQQ.
Holdings Overlap
PBDC and QQQ share 0 holdings out of 125 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PBDC or QQQ?
PBDC has an expense ratio of 13.49% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1331 per year of difference.
Which performed better, PBDC or QQQ?
Over the past year PBDC returned -7.15% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), PBDC annualized +13.56% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, PBDC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.3% for PBDC. Worst drawdown: PBDC -20.5% vs QQQ -83.0%.
Should I hold both PBDC and QQQ?
PBDC and QQQ have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PBDC and QQQ?
PBDC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 125 unique securities.
Which pays a higher dividend, PBDC or QQQ?
PBDC yields 11.60% while QQQ yields 0.44%, so PBDC currently pays the higher dividend yield.
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