PCN vs QQQ
PIMCO Corporate & Income Strategy 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 | PCN | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.88% | 0.18% | |
| AUM | $864M | $455.8B | |
| Dividend Yield | 11.74% | 0.41% | |
| Holdings | 526 | 108 | |
| YTD Return | -0.79% | +19.68% | |
| 1Y Return | +3.04% | +26.75% | |
| 3Y Return (annualized) | +4.39% | +26.25% | |
| 5Y Return (annualized) | +0.17% | +15.39% | |
| Volatility (annualized) | 21.7% | 30.6% | |
| Max Drawdown | -66.7% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 21, 2001 | Mar 10, 1999 |
PCN vs QQQ Performance
PIMCO Corporate & Income Strategy Fund (PCN) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PCN returned +3.04% while QQQ returned +26.75%. Year to date, PCN is down 0.79% versus a gain of 19.68% for QQQ.
Over three years, PCN compounded at +4.39% per year against +26.25% for QQQ; over five years the annualized figures are +0.17% and +15.39% respectively. Across the full 25-year window we track, QQQ has the edge at +13.15% annualized vs +1.27%. 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 21.7% for PCN. 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 -66.7% for PCN 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCN charges 0.88% per year while QQQ charges 0.18%. On a $10,000 position that is $88 vs $18 annually, a gap of $70 per year that compounds over a long holding period. On income, PCN currently yields 11.74% against 0.41% for QQQ.
Holdings Overlap
PCN and QQQ share 0 holdings out of 126 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, PCN or QQQ?
PCN has an expense ratio of 0.88% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, PCN or QQQ?
Over the past year PCN returned +3.04% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (25 years), PCN annualized +1.27% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, PCN or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.7% for PCN. Worst drawdown: PCN -66.7% vs QQQ -83.0%.
Should I hold both PCN and QQQ?
PCN and QQQ have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCN and QQQ?
PCN and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 126 unique securities.
Which pays a higher dividend, PCN or QQQ?
PCN yields 11.74% while QQQ yields 0.41%, so PCN currently pays the higher dividend yield.
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