PBE vs QQQ
Invesco Biotechnology and Genome ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. PBE delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | PBE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.18% | |
| AUM | $283M | $455.8B | |
| Dividend Yield | 1.73% | 0.41% | |
| Holdings | 33 | 108 | |
| YTD Return | +15.27% | +17.46% | |
| 1Y Return | +47.38% | +26.02% | |
| 3Y Return (annualized) | +15.81% | +25.51% | |
| 5Y Return (annualized) | +4.94% | +15.12% | |
| Volatility (annualized) | 21.2% | 30.6% | |
| Max Drawdown | -45.7% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Mar 10, 1999 |
PBE vs QQQ Performance
Invesco Biotechnology and Genome ETF (PBE) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PBE returned +47.38% while QQQ returned +26.02%. Year to date, PBE is up 15.27% versus a gain of 17.46% for QQQ.
Over three years, PBE compounded at +15.81% per year against +25.51% for QQQ; over five years the annualized figures are +4.94% and +15.12% respectively. Across the full 21-year window we track, QQQ has the edge at +13.08% annualized vs +9.28%. 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 21.2% for PBE. 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 -45.7% for PBE 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PBE charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, PBE currently yields 1.73% against 0.41% for QQQ.
Holdings Overlap
PBE and QQQ share 5 holdings out of 129 unique holdings combined, representing a 2.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PBE or QQQ?
PBE has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, PBE or QQQ?
Over the past year PBE returned +47.38% vs +26.02% for QQQ, so PBE leads on 1-year performance. Over the longest common window we track (21 years), PBE annualized +9.28% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, PBE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.2% for PBE. Worst drawdown: PBE -45.7% vs QQQ -83.0%.
Should I hold both PBE and QQQ?
PBE and QQQ have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PBE and QQQ?
PBE and QQQ share 5 common holdings with a 2.6% weight overlap. Combined, they hold 129 unique securities.
Which pays a higher dividend, PBE or QQQ?
PBE yields 1.73% while QQQ yields 0.41%, so PBE currently pays the higher dividend yield.
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