PCS vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PCS offers more diversification with 184 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: PCS

Side-by-Side Comparison

MetricPCSQQQWinner
Expense Ratio0.20%0.18%
AUM$618M$455.8B
Dividend Yield4.38%0.41%
Holdings277108
YTD Return-0.65%+17.46%
1Y Return+1.46%+26.02%
3Y Return (annualized)-+25.51%
5Y Return (annualized)-+15.12%
Volatility (annualized)1.6%30.6%
Max Drawdown-1.7%-83.0%
Fund FamilyPGIM InvestmentsInvesco (US)
CategoryFixed IncomeEquity
InceptionJul 29, 2025Mar 10, 1999

PCS vs QQQ Performance

PGIM Corporate Bond 0-5 Year ETF (PCS) is a ETF from PGIM Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PCS returned +1.46% while QQQ returned +26.02%. Year to date, PCS is down 0.65% versus a gain of 17.46% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 1.6% for PCS. 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 -1.7% for PCS 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PCS charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, PCS currently yields 4.38% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

PCS and QQQ share 0 holdings out of 287 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, PCS or QQQ?

PCS has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, PCS or QQQ?

Over the past year PCS returned +1.46% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), PCS annualized +1.50% vs +13.08% for QQQ. Past performance does not guarantee future results.

Which is riskier, PCS or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 1.6% for PCS. Worst drawdown: PCS -1.7% vs QQQ -83.0%.

Should I hold both PCS and QQQ?

PCS and QQQ have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PCS and QQQ?

PCS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 287 unique securities.

Which pays a higher dividend, PCS or QQQ?

PCS yields 4.38% while QQQ yields 0.41%, so PCS currently pays the higher dividend yield.

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