PDN vs QQQ
Invesco FTSE RAFI Developed Markets ex-US Small-Mid ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PDN offers more diversification with 1557 holdings.
Side-by-Side Comparison
| Metric | PDN | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.18% | |
| AUM | $350M | $455.8B | |
| Dividend Yield | 3.29% | 0.41% | |
| Holdings | 1,599 | 108 | |
| YTD Return | +13.13% | +18.31% | |
| 1Y Return | +21.69% | +25.37% | |
| 3Y Return (annualized) | +18.25% | +25.79% | |
| 5Y Return (annualized) | +7.23% | +15.20% | |
| Volatility (annualized) | 18.2% | 30.6% | |
| Max Drawdown | -60.1% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 27, 2007 | Mar 10, 1999 |
PDN vs QQQ Performance
Invesco FTSE RAFI Developed Markets ex-US Small-Mid ETF (PDN) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PDN returned +21.69% while QQQ returned +25.37%. Year to date, PDN is up 13.13% versus a gain of 18.31% for QQQ.
Over three years, PDN compounded at +18.25% per year against +25.79% for QQQ; over five years the annualized figures are +7.23% and +15.20% respectively. Across the full 19-year window we track, QQQ has the edge at +13.10% annualized vs +4.18%. 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 18.2% for PDN. 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 -60.1% for PDN 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PDN charges 0.47% per year while QQQ charges 0.18%. On a $10,000 position that is $47 vs $18 annually, a gap of $29 per year that compounds over a long holding period. On income, PDN currently yields 3.29% against 0.41% for QQQ.
Holdings Overlap
PDN and QQQ share 2 holdings out of 1658 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PDN or QQQ?
PDN has an expense ratio of 0.47% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, PDN or QQQ?
Over the past year PDN returned +21.69% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), PDN annualized +4.18% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, PDN or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.2% for PDN. Worst drawdown: PDN -60.1% vs QQQ -83.0%.
Should I hold both PDN and QQQ?
PDN and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDN and QQQ?
PDN and QQQ share 2 common holdings with a 0.2% weight overlap. Combined, they hold 1658 unique securities.
Which pays a higher dividend, PDN or QQQ?
PDN yields 3.29% while QQQ yields 0.41%, so PDN currently pays the higher dividend yield.
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