PDO vs QQQ
PIMCO Dynamic Income Opportunities Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PDO offers more diversification with 635 holdings.
Side-by-Side Comparison
| Metric | PDO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 5.22% | 0.18% | |
| AUM | $1.9B | $496.3B | |
| Dividend Yield | 12.02% | 0.44% | |
| Holdings | 635 | 108 | |
| YTD Return | -1.30% | +19.32% | |
| 1Y Return | +4.25% | +27.08% | |
| 3Y Return (annualized) | +12.45% | +27.54% | |
| 5Y Return (annualized) | +2.32% | +15.51% | |
| Volatility (annualized) | 17.3% | 30.6% | |
| Max Drawdown | -36.8% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 29, 2021 | Mar 10, 1999 |
PDO vs QQQ Performance
PIMCO Dynamic Income Opportunities Fund (PDO) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PDO returned +4.25% while QQQ returned +27.08%. Year to date, PDO is down 1.30% versus a gain of 19.32% for QQQ.
Over three years, PDO compounded at +12.45% per year against +27.54% for QQQ; over five years the annualized figures are +2.32% and +15.51% respectively. Across the full 6-year window we track, QQQ has the edge at +13.13% annualized vs +3.69%. 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 17.3% for PDO. 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 -36.8% for PDO 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PDO charges 5.22% per year while QQQ charges 0.18%. On a $10,000 position that is $522 vs $18 annually, a gap of $504 per year that compounds over a long holding period. On income, PDO currently yields 12.02% against 0.44% for QQQ.
Holdings Overlap
PDO and QQQ share 0 holdings out of 119 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, PDO or QQQ?
PDO has an expense ratio of 5.22% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $504 per year of difference.
Which performed better, PDO or QQQ?
Over the past year PDO returned +4.25% vs +27.08% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), PDO annualized +3.69% vs +13.13% for QQQ. Past performance does not guarantee future results.
Which is riskier, PDO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.3% for PDO. Worst drawdown: PDO -36.8% vs QQQ -83.0%.
Should I hold both PDO and QQQ?
PDO and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDO and QQQ?
PDO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 119 unique securities.
Which pays a higher dividend, PDO or QQQ?
PDO yields 12.02% while QQQ yields 0.44%, so PDO currently pays the higher dividend yield.
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