PEO vs QQQ
Adams Natural Resources Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. PEO delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PEO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.18% | |
| AUM | $740M | $496.3B | |
| Dividend Yield | 11.99% | 0.44% | |
| Holdings | 53 | 108 | |
| YTD Return | +29.99% | +16.64% | |
| 1Y Return | +35.59% | +27.27% | |
| 3Y Return (annualized) | +16.22% | +25.96% | |
| 5Y Return (annualized) | +22.36% | +14.54% | |
| Volatility (annualized) | 23.0% | 30.6% | |
| Max Drawdown | -70.9% | -83.0% | |
| Fund Family | Adams Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 30, 1929 | Mar 10, 1999 |
PEO vs QQQ Performance
Adams Natural Resources Fund (PEO) is a ETF from Adams Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PEO returned +35.59% while QQQ returned +27.27%. Year to date, PEO is up 29.99% versus a gain of 16.64% for QQQ.
Over three years, PEO compounded at +16.22% per year against +25.96% for QQQ; over five years the annualized figures are +22.36% and +14.54% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs +10.44%. 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 23.0% for PEO. 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 -70.9% for PEO 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PEO charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, PEO currently yields 11.99% against 0.44% for QQQ.
Holdings Overlap
PEO and QQQ share 3 holdings out of 152 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PEO or QQQ?
PEO has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, PEO or QQQ?
Over the past year PEO returned +35.59% vs +27.27% for QQQ, so PEO leads on 1-year performance. Over the longest common window we track (27 years), PEO annualized +10.44% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PEO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 23.0% for PEO. Worst drawdown: PEO -70.9% vs QQQ -83.0%.
Should I hold both PEO and QQQ?
PEO and QQQ have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PEO and QQQ?
PEO and QQQ share 3 common holdings with a 1.5% weight overlap. Combined, they hold 152 unique securities.
Which pays a higher dividend, PEO or QQQ?
PEO yields 11.99% while QQQ yields 0.44%, so PEO currently pays the higher dividend yield.
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