PBP vs QQQ
Invesco S&P 500 BuyWrite ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PBP offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | PBP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $368M | $496.3B | |
| Dividend Yield | 10.52% | 0.44% | |
| Holdings | 508 | 108 | |
| YTD Return | +2.40% | +16.23% | |
| 1Y Return | +10.11% | +26.23% | |
| 3Y Return (annualized) | +12.95% | +25.75% | |
| 5Y Return (annualized) | +7.85% | +14.78% | |
| Volatility (annualized) | 49.5% | 30.6% | |
| Max Drawdown | -79.6% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 20, 2007 | Mar 10, 1999 |
PBP vs QQQ Performance
Invesco S&P 500 BuyWrite ETF (PBP) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PBP returned +10.11% while QQQ returned +26.23%. Year to date, PBP is up 2.40% versus a gain of 16.23% for QQQ.
Over three years, PBP compounded at +12.95% per year against +25.75% for QQQ; over five years the annualized figures are +7.85% and +14.78% respectively. Across the full 19-year window we track, QQQ has the edge at +13.02% annualized vs +5.64%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PBP has been the more volatile fund, with annualized monthly volatility of 49.5% compared with 30.6% 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 -79.6% for PBP 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PBP 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, PBP currently yields 10.52% against 0.44% for QQQ.
Holdings Overlap
PBP and QQQ share 86 holdings out of 515 unique holdings combined, representing a 53.1% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, PBP or QQQ?
PBP has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, PBP or QQQ?
Over the past year PBP returned +10.11% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), PBP annualized +5.64% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, PBP or QQQ?
PBP has been the more volatile fund at 49.5% annualized versus 30.6% for QQQ. Worst drawdown: PBP -79.6% vs QQQ -83.0%.
Should I hold both PBP and QQQ?
PBP and QQQ have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PBP and QQQ?
PBP and QQQ share 86 common holdings with a 53.1% weight overlap. Combined, they hold 515 unique securities.
Which pays a higher dividend, PBP or QQQ?
PBP yields 10.52% while QQQ yields 0.44%, so PBP currently pays the higher dividend yield.
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