PDX vs QQQ
PIMCO Dynamic Income Strategy Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PDX offers more diversification with 442 holdings.
Side-by-Side Comparison
| Metric | PDX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 3.29% | 0.18% | |
| AUM | $1.0B | $496.3B | |
| Dividend Yield | 19.41% | 0.44% | |
| Holdings | 442 | 108 | |
| YTD Return | +21.22% | +17.07% | |
| 1Y Return | +12.94% | +26.39% | |
| 3Y Return (annualized) | +22.33% | +26.08% | |
| 5Y Return (annualized) | +25.76% | +15.18% | |
| Volatility (annualized) | 39.5% | 30.6% | |
| Max Drawdown | -83.0% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 1, 2019 | Mar 10, 1999 |
PDX vs QQQ Performance
PIMCO Dynamic Income Strategy Fund (PDX) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PDX returned +12.94% while QQQ returned +26.39%. Year to date, PDX is up 21.22% versus a gain of 17.07% for QQQ.
Over three years, PDX compounded at +22.33% per year against +26.08% for QQQ; over five years the annualized figures are +25.76% and +15.18% respectively. Across the full 8-year window we track, QQQ has the edge at +13.05% annualized vs +8.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PDX has been the more volatile fund, with annualized monthly volatility of 39.5% compared with 30.6% for QQQ. 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 -83.0% for PDX 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PDX charges 3.29% per year while QQQ charges 0.18%. On a $10,000 position that is $329 vs $18 annually, a gap of $311 per year that compounds over a long holding period. On income, PDX currently yields 19.41% against 0.44% for QQQ.
Holdings Overlap
PDX and QQQ share 0 holdings out of 109 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, PDX or QQQ?
PDX has an expense ratio of 3.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $311 per year of difference.
Which performed better, PDX or QQQ?
Over the past year PDX returned +12.94% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), PDX annualized +8.01% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, PDX or QQQ?
PDX has been the more volatile fund at 39.5% annualized versus 30.6% for QQQ. Worst drawdown: PDX -83.0% vs QQQ -83.0%.
Should I hold both PDX and QQQ?
PDX and QQQ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDX and QQQ?
PDX and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 109 unique securities.
Which pays a higher dividend, PDX or QQQ?
PDX yields 19.41% while QQQ yields 0.44%, so PDX currently pays the higher dividend yield.
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