PBJ vs QQQ
Invesco Food and Beverage 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 | PBJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.18% | |
| AUM | $91M | $496.3B | |
| Dividend Yield | 1.26% | 0.44% | |
| Holdings | 32 | 108 | |
| YTD Return | +8.93% | +16.23% | |
| 1Y Return | +1.74% | +26.23% | |
| 3Y Return (annualized) | +4.49% | +25.75% | |
| 5Y Return (annualized) | +4.38% | +14.78% | |
| Volatility (annualized) | 13.0% | 30.6% | |
| Max Drawdown | -41.7% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Mar 10, 1999 |
PBJ vs QQQ Performance
Invesco Food and Beverage ETF (PBJ) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PBJ returned +1.74% while QQQ returned +26.23%. Year to date, PBJ is up 8.93% versus a gain of 16.23% for QQQ.
Over three years, PBJ compounded at +4.49% per year against +25.75% for QQQ; over five years the annualized figures are +4.38% and +14.78% respectively. Across the full 21-year window we track, QQQ has the edge at +13.02% annualized vs +6.13%. 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 13.0% for PBJ. 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 -41.7% for PBJ 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PBJ charges 0.61% per year while QQQ charges 0.18%. On a $10,000 position that is $61 vs $18 annually, a gap of $43 per year that compounds over a long holding period. On income, PBJ currently yields 1.26% against 0.44% for QQQ.
Holdings Overlap
PBJ and QQQ share 3 holdings out of 130 unique holdings combined, representing a 1.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PBJ or QQQ?
PBJ has an expense ratio of 0.61% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, PBJ or QQQ?
Over the past year PBJ returned +1.74% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), PBJ annualized +6.13% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, PBJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.0% for PBJ. Worst drawdown: PBJ -41.7% vs QQQ -83.0%.
Should I hold both PBJ and QQQ?
PBJ and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PBJ and QQQ?
PBJ and QQQ share 3 common holdings with a 1.8% weight overlap. Combined, they hold 130 unique securities.
Which pays a higher dividend, PBJ or QQQ?
PBJ yields 1.26% while QQQ yields 0.44%, so PBJ currently pays the higher dividend yield.
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