PCM vs QQQ
PCM vs QQQ
PCM Fund Inc. 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 | PCM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.63% | 0.18% | |
| AUM | $71M | $455.8B | |
| Dividend Yield | 13.82% | 0.41% | |
| Holdings | 318 | 108 | |
| YTD Return | +0.06% | +18.20% | |
| 1Y Return | +1.08% | +27.63% | |
| 3Y Return (annualized) | -7.00% | +25.54% | |
| 5Y Return (annualized) | -3.99% | +15.12% | |
| Volatility (annualized) | 16.2% | 30.6% | |
| Max Drawdown | -73.2% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 2, 1993 | Mar 10, 1999 |
PCM vs QQQ Performance
PCM Fund Inc. (PCM) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PCM returned +1.08% while QQQ returned +27.63%. Year to date, PCM is up 0.06% versus a gain of 18.20% for QQQ.
Over three years, PCM compounded at -7.00% per year against +25.54% for QQQ; over five years the annualized figures are -3.99% and +15.12% respectively. Across the full 27-year window we track, QQQ has the edge at +13.11% annualized vs -0.66%. 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 16.2% for PCM. 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 -73.2% for PCM 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCM charges 1.63% per year while QQQ charges 0.18%. On a $10,000 position that is $163 vs $18 annually, a gap of $145 per year that compounds over a long holding period. On income, PCM currently yields 13.82% against 0.41% for QQQ.
Holdings Overlap
PCM and QQQ share 0 holdings out of 119 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, PCM or QQQ?
PCM has an expense ratio of 1.63% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $145 per year of difference.
Which performed better, PCM or QQQ?
Over the past year PCM returned +1.08% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), PCM annualized -0.66% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, PCM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.2% for PCM. Worst drawdown: PCM -73.2% vs QQQ -83.0%.
Should I hold both PCM and QQQ?
PCM and QQQ have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCM and QQQ?
PCM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 119 unique securities.
Which pays a higher dividend, PCM or QQQ?
PCM yields 13.82% while QQQ yields 0.41%, so PCM currently pays the higher dividend yield.
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