PCY vs QQQ
Invesco Emerging Markets Sovereign Debt ETF 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 108 holdings.
Side-by-Side Comparison
| Metric | PCY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $1.4B | $496.3B | |
| Dividend Yield | 6.01% | 0.44% | |
| Holdings | 105 | 108 | |
| YTD Return | +0.57% | +16.64% | |
| 1Y Return | +7.18% | +27.27% | |
| 3Y Return (annualized) | +10.76% | +25.96% | |
| 5Y Return (annualized) | +0.88% | +14.54% | |
| Volatility (annualized) | 13.6% | 30.6% | |
| Max Drawdown | -49.4% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 11, 2007 | Mar 10, 1999 |
PCY vs QQQ Performance
Invesco Emerging Markets Sovereign Debt ETF (PCY) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PCY returned +7.18% while QQQ returned +27.27%. Year to date, PCY is up 0.57% versus a gain of 16.64% for QQQ.
Over three years, PCY compounded at +10.76% per year against +25.96% for QQQ; over five years the annualized figures are +0.88% and +14.54% respectively. Across the full 19-year window we track, QQQ has the edge at +13.03% annualized vs +0.75%. 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 13.6% for PCY. 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 -49.4% for PCY 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCY charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, PCY currently yields 6.01% against 0.44% for QQQ.
Holdings Overlap
PCY and QQQ share 0 holdings out of 180 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, PCY or QQQ?
PCY has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, PCY or QQQ?
Over the past year PCY returned +7.18% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), PCY annualized +0.75% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PCY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.6% for PCY. Worst drawdown: PCY -49.4% vs QQQ -83.0%.
Should I hold both PCY and QQQ?
PCY and QQQ have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCY and QQQ?
PCY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 180 unique securities.
Which pays a higher dividend, PCY or QQQ?
PCY yields 6.01% while QQQ yields 0.44%, so PCY currently pays the higher dividend yield.
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