PBW vs QQQ

Quick Verdict

QQQ has a lower expense ratio. PBW delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: PBWMore Diversified: QQQ

Side-by-Side Comparison

MetricPBWQQQWinner
Expense Ratio0.64%0.18%
AUM$386M$455.8B
Dividend Yield1.21%0.41%
Holdings71108
YTD Return+7.68%+17.85%
1Y Return+47.82%+26.45%
3Y Return (annualized)-1.74%+26.07%
5Y Return (annualized)-14.96%+15.16%
Volatility (annualized)35.5%30.6%
Max Drawdown-89.7%-83.0%
Fund FamilyInvesco (US)Invesco (US)
CategoryEquityEquity
InceptionMar 3, 2005Mar 10, 1999

PBW vs QQQ Performance

Invesco WilderHill Clean Energy ETF (PBW) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PBW returned +47.82% while QQQ returned +26.45%. Year to date, PBW is up 7.68% versus a gain of 17.85% for QQQ.

Over three years, PBW compounded at -1.74% per year against +26.07% for QQQ; over five years the annualized figures are -14.96% and +15.16% respectively. Across the full 21-year window we track, QQQ has the edge at +13.09% annualized vs -3.22%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PBW has been the more volatile fund, with annualized monthly volatility of 35.5% 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 -89.7% for PBW 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PBW charges 0.64% per year while QQQ charges 0.18%. On a $10,000 position that is $64 vs $18 annually, a gap of $46 per year that compounds over a long holding period. On income, PBW currently yields 1.21% against 0.41% for QQQ.

Holdings Overlap

1.6%overlap

PBW and QQQ share 2 holdings out of 170 unique holdings combined, representing a 1.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PBWWeight in QQQDifference
TSLA1.34%3.16%1.82%
MPWR1.51%0.28%1.23%

Frequently Asked Questions

Which is cheaper, PBW or QQQ?

PBW has an expense ratio of 0.64% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, PBW or QQQ?

Over the past year PBW returned +47.82% vs +26.45% for QQQ, so PBW leads on 1-year performance. Over the longest common window we track (21 years), PBW annualized -3.22% vs +13.09% for QQQ. Past performance does not guarantee future results.

Which is riskier, PBW or QQQ?

PBW has been the more volatile fund at 35.5% annualized versus 30.6% for QQQ. Worst drawdown: PBW -89.7% vs QQQ -83.0%.

Should I hold both PBW and QQQ?

PBW and QQQ have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PBW and QQQ?

PBW and QQQ share 2 common holdings with a 1.6% weight overlap. Combined, they hold 170 unique securities.

Which pays a higher dividend, PBW or QQQ?

PBW yields 1.21% while QQQ yields 0.41%, so PBW currently pays the higher dividend yield.

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