PDT vs QQQ
John Hancock Premium Dividend Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PDT offers more diversification with 144 holdings.
Side-by-Side Comparison
| Metric | PDT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.41% | 0.18% | |
| AUM | $690M | $496.3B | |
| Dividend Yield | 6.95% | 0.44% | |
| Holdings | 144 | 108 | |
| YTD Return | +5.55% | +19.52% | |
| 1Y Return | +3.53% | +26.68% | |
| 3Y Return (annualized) | +15.99% | +26.64% | |
| 5Y Return (annualized) | +2.38% | +15.36% | |
| Volatility (annualized) | 16.7% | 30.6% | |
| Max Drawdown | -62.6% | -83.0% | |
| Fund Family | John Hancock Investment Management | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Dec 21, 1989 | Mar 10, 1999 |
PDT vs QQQ Performance
John Hancock Premium Dividend Fund (PDT) is a ETF from John Hancock Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PDT returned +3.53% while QQQ returned +26.68%. Year to date, PDT is up 5.55% versus a gain of 19.52% for QQQ.
Over three years, PDT compounded at +15.99% per year against +26.64% for QQQ; over five years the annualized figures are +2.38% and +15.36% respectively. Across the full 27-year window we track, QQQ has the edge at +13.14% annualized vs +1.94%. 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 16.7% for PDT. 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 -62.6% for PDT 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PDT charges 2.41% per year while QQQ charges 0.18%. On a $10,000 position that is $241 vs $18 annually, a gap of $223 per year that compounds over a long holding period. On income, PDT currently yields 6.95% against 0.44% for QQQ.
Holdings Overlap
PDT and QQQ share 3 holdings out of 198 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PDT or QQQ?
PDT has an expense ratio of 2.41% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $223 per year of difference.
Which performed better, PDT or QQQ?
Over the past year PDT returned +3.53% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), PDT annualized +1.94% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, PDT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.7% for PDT. Worst drawdown: PDT -62.6% vs QQQ -83.0%.
Should I hold both PDT and QQQ?
PDT and QQQ have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDT and QQQ?
PDT and QQQ share 3 common holdings with a 0.7% weight overlap. Combined, they hold 198 unique securities.
Which pays a higher dividend, PDT or QQQ?
PDT yields 6.95% while QQQ yields 0.44%, so PDT currently pays the higher dividend yield.
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