PDI vs QQQ
PIMCO Dynamic Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PDI offers more diversification with 1,822 holdings.
Side-by-Side Comparison
| Metric | PDI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 5.12% | 0.18% | |
| AUM | $7.5B | $496.3B | |
| Dividend Yield | 16.84% | 0.44% | |
| Holdings | 1,822 | 108 | |
| YTD Return | -6.63% | +16.64% | |
| 1Y Return | -9.05% | +27.27% | |
| 3Y Return (annualized) | +8.38% | +25.96% | |
| 5Y Return (annualized) | +1.62% | +14.54% | |
| Volatility (annualized) | 14.6% | 30.6% | |
| Max Drawdown | -48.0% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2012 | Mar 10, 1999 |
PDI vs QQQ Performance
PIMCO Dynamic Income Fund (PDI) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PDI returned -9.05% while QQQ returned +27.27%. Year to date, PDI is down 6.63% versus a gain of 16.64% for QQQ.
Over three years, PDI compounded at +8.38% per year against +25.96% for QQQ; over five years the annualized figures are +1.62% and +14.54% respectively. Across the full 14-year window we track, QQQ has the edge at +13.03% annualized vs +1.82%. 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 14.6% for PDI. 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 -48.0% for PDI 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PDI charges 5.12% per year while QQQ charges 0.18%. On a $10,000 position that is $512 vs $18 annually, a gap of $494 per year that compounds over a long holding period. On income, PDI currently yields 16.84% against 0.44% for QQQ.
Holdings Overlap
PDI and QQQ share 0 holdings out of 127 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, PDI or QQQ?
PDI has an expense ratio of 5.12% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $494 per year of difference.
Which performed better, PDI or QQQ?
Over the past year PDI returned -9.05% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), PDI annualized +1.82% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PDI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.6% for PDI. Worst drawdown: PDI -48.0% vs QQQ -83.0%.
Should I hold both PDI and QQQ?
PDI and QQQ have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDI and QQQ?
PDI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 127 unique securities.
Which pays a higher dividend, PDI or QQQ?
PDI yields 16.84% while QQQ yields 0.44%, so PDI currently pays the higher dividend yield.
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