PCF vs QQQ
Putnam High Income Securities Fund 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 103 holdings.
Side-by-Side Comparison
| Metric | PCF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 4.77% | 0.18% | |
| AUM | $117M | $455.8B | |
| Dividend Yield | 10.91% | 0.41% | |
| Holdings | 135 | 108 | |
| YTD Return | -4.54% | +18.31% | |
| 1Y Return | -4.28% | +25.37% | |
| 3Y Return (annualized) | +4.43% | +25.79% | |
| 5Y Return (annualized) | -0.52% | +15.20% | |
| Volatility (annualized) | 15.4% | 30.6% | |
| Max Drawdown | -67.3% | -83.0% | |
| Fund Family | Putnam Investments | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jul 9, 1987 | Mar 10, 1999 |
PCF vs QQQ Performance
Putnam High Income Securities Fund (PCF) is a ETF from Putnam Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PCF returned -4.28% while QQQ returned +25.37%. Year to date, PCF is down 4.54% versus a gain of 18.31% for QQQ.
Over three years, PCF compounded at +4.43% per year against +25.79% for QQQ; over five years the annualized figures are -0.52% and +15.20% respectively. Across the full 27-year window we track, QQQ has the edge at +13.10% annualized vs +0.03%. 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 15.4% for PCF. 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 -67.3% for PCF 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCF charges 4.77% per year while QQQ charges 0.18%. On a $10,000 position that is $477 vs $18 annually, a gap of $459 per year that compounds over a long holding period. On income, PCF currently yields 10.91% against 0.41% for QQQ.
Holdings Overlap
PCF and QQQ share 0 holdings out of 202 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PCF or QQQ?
PCF has an expense ratio of 4.77% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $459 per year of difference.
Which performed better, PCF or QQQ?
Over the past year PCF returned -4.28% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), PCF annualized +0.03% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, PCF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.4% for PCF. Worst drawdown: PCF -67.3% vs QQQ -83.0%.
Should I hold both PCF and QQQ?
PCF and QQQ have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCF and QQQ?
PCF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 202 unique securities.
Which pays a higher dividend, PCF or QQQ?
PCF yields 10.91% while QQQ yields 0.41%, so PCF currently pays the higher dividend yield.
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