PCEF vs QQQ
Invesco CEF Income Composite ETF vs Invesco QQQ Trust, Series 1
Which is better, PCEF or QQQ?
Debt-oriented balanced against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. PCEF is less concentrated, with 29.1% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PCEF | QQQ |
|---|---|---|
| Expense Ratio | 2.71% | 0.18%Best |
| AUM | $816M | $486.1B |
| Dividend Yield | 7.70% | 0.44% |
| Holdings | 109 | 107 |
| YTD Return | +7.35% | +17.44%Best |
| 1Y Return | +9.31% | +24.69%Best |
| 3Y Return (annualized) | +13.88% | +24.76%Best |
| 5Y Return (annualized) | +4.76% | +14.22%Best |
| Volatility (annualized) | 11.6%Best | 17.6% |
| Max Drawdown | -46.0% | -35.1%Best |
| $10,000 over 5 years | $12,618 | $19,441Best |
| Top 10 Weight | 29.1%Best | 46.5% |
| Fund Family | Invesco (US) | Invesco (US) |
| Category | Allocation/Balanced | Equity |
| Style | Debt-oriented balanced | Large Cap Growth |
| Inception | Feb 19, 2010 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Feb 19, 2010 to Sep 8, 2026 (16.6 years).
PCEF vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
PCEF vs QQQ Performance
Invesco CEF Income Composite ETF (PCEF) is an ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PCEF returned +9.31% while QQQ returned +24.69%. Year to date, PCEF is up 7.35% versus a gain of 17.44% for QQQ.
Over three years, PCEF compounded at +13.88% per year against +24.76% for QQQ; over five years the annualized figures are +4.76% and +14.22% respectively. Across the full 17-year window we track, QQQ has the edge at +18.48% annualized vs +1.49%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.6% compared with 11.6% for PCEF. 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 -46.0% for PCEF and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PCEF charges 2.71% per year while QQQ charges 0.18%. On a $10,000 position that is $271 vs $18 annually, a gap of $253 per year that compounds over a long holding period. On income, PCEF currently yields 7.70% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 106 holdings in PCEF and 102 in QQQ, totalling 98.5% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 106 positions we hold weights for in PCEF and 102 in QQQ, against full books of 109 and 107.
What only one of them owns
Our book lists 94 positions for QQQ that do not appear in our book for PCEF (96.8% of the fund), and 103 for PCEF that do not appear in QQQ (95.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of PCEF and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PCEF or QQQ?
PCEF has an expense ratio of 2.71% while QQQ charges 0.18%. QQQ is the cheaper option, by $253 a year on a $10,000 investment.
Which performed better, PCEF or QQQ?
Over the past year PCEF returned +9.31% vs +24.69% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), PCEF annualized +1.49% vs +18.48% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PCEF or QQQ?
QQQ has been the more volatile fund at 17.6% annualized versus 11.6% for PCEF. Worst drawdown: PCEF -46.0% vs QQQ -35.1%.
Should I hold both PCEF and QQQ?
PCEF and QQQ have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, PCEF or QQQ?
PCEF yields 7.70% while QQQ yields 0.44%, so PCEF currently pays the higher dividend yield.
Is QQQ better than PCEF?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. PCEF is less concentrated, with 29.1% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.