PCQ vs QQQ
PIMCO California Municipal Income 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 | PCQ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.20% | 0.18% | |
| AUM | $556M | $455.8B | |
| Dividend Yield | 4.28% | 0.41% | |
| Holdings | 263 | 108 | |
| YTD Return | +3.82% | +19.68% | |
| 1Y Return | +12.48% | +26.75% | |
| 3Y Return (annualized) | +0.98% | +26.25% | |
| 5Y Return (annualized) | -10.17% | +15.39% | |
| Volatility (annualized) | 15.6% | 30.6% | |
| Max Drawdown | -60.6% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 29, 2001 | Mar 10, 1999 |
PCQ vs QQQ Performance
PIMCO California Municipal Income Fund (PCQ) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PCQ returned +12.48% while QQQ returned +26.75%. Year to date, PCQ is up 3.82% versus a gain of 19.68% for QQQ.
Over three years, PCQ compounded at +0.98% per year against +26.25% for QQQ; over five years the annualized figures are -10.17% and +15.39% respectively. Across the full 25-year window we track, QQQ has the edge at +13.15% annualized vs -1.11%. 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 15.6% for PCQ. 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 -60.6% for PCQ 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCQ charges 1.20% per year while QQQ charges 0.18%. On a $10,000 position that is $120 vs $18 annually, a gap of $102 per year that compounds over a long holding period. On income, PCQ currently yields 4.28% against 0.41% for QQQ.
Holdings Overlap
PCQ and QQQ share 0 holdings out of 187 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, PCQ or QQQ?
PCQ has an expense ratio of 1.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $102 per year of difference.
Which performed better, PCQ or QQQ?
Over the past year PCQ returned +12.48% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (25 years), PCQ annualized -1.11% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, PCQ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.6% for PCQ. Worst drawdown: PCQ -60.6% vs QQQ -83.0%.
Should I hold both PCQ and QQQ?
PCQ and QQQ have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCQ and QQQ?
PCQ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 187 unique securities.
Which pays a higher dividend, PCQ or QQQ?
PCQ yields 4.28% while QQQ yields 0.41%, so PCQ currently pays the higher dividend yield.
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