PEPS vs QQQ
Parametric Equity Plus ETF vs Invesco QQQ Trust, Series 1
Which is better, PEPS or QQQ?
Large Cap Blend against Large Cap Growth.
PEPS has a lower expense ratio. QQQ led over 1Y and the full window. PEPS is less concentrated, with 38.3% of the fund in its ten largest positions against 47.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PEPS | QQQ |
|---|---|---|
| Expense Ratio | 0.10%Best | 0.18% |
| AUM | $30M | $498.6B |
| Dividend Yield | 0.91% | 0.42% |
| Holdings | 213 | 321 |
| YTD Return | +12.57% | +21.44%Best |
| 1Y Return | +16.40% | +23.58%Best |
| 3Y Return (annualized) | - | +27.86% |
| 5Y Return (annualized) | - | +16.25% |
| Volatility (annualized) | 12.7%Best | 18.7% |
| Max Drawdown | -21.0%Best | -22.8% |
| $10,000 over 1.9 years | $13,425 | $14,593Best |
| Top 10 Weight | 38.3%Best | 47.2% |
| Fund Family | Parametric | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Nov 7, 2024 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Nov 8, 2024 to Oct 1, 2026 (1.9 years).
PEPS vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.9 years both funds cover.
PEPS vs QQQ Performance
Parametric Equity Plus ETF (PEPS) is an ETF from Parametric and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PEPS returned +16.40% while QQQ returned +23.58%. Year to date, PEPS is up 12.57% versus a gain of 21.44% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 12.7% for PEPS. 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 -21.0% for PEPS and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PEPS charges 0.10% per year while QQQ charges 0.18%. On a $10,000 position that is $10 vs $18 annually, a gap of $8 per year that compounds over a long holding period. On income, PEPS currently yields 0.91% against 0.42% for QQQ.
Holdings Overlap
48.9% of PEPS's money is in holdings QQQ also owns. 71.6% of QQQ's money is in holdings PEPS also owns.
Most of QQQ is already inside PEPS. Owning both mostly buys the same companies twice.
36 positions in common, counted across the 195 positions we hold weights for in PEPS and 102 in QQQ, against full books of 213 and 321.
What only one of them owns
Our book lists 59 positions for QQQ that do not appear in our book for PEPS (26.2% of the fund), and 147 for PEPS that do not appear in QQQ (47.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PEPS | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 7.20% | 8.45% | 1.25% |
| AAPLApple, Inc | 7.15% | 7.80% | 0.65% |
| MSFTMicrosoft Corp | 5.36% | 5.88% | 0.52% |
| AMZNAmazon.Com Inc | 3.62% | 4.41% | 0.79% |
| MUMicron Technology, Inc. | 2.01% | 4.85% | 2.84% |
| GOOGLAlphabet Inc,class A | 2.90% | 3.15% | 0.25% |
| GOOGAlphabet Inc. C | 2.58% | 2.93% | 0.35% |
| AVGOBroadcom Inc | 2.64% | 2.74% | 0.10% |
| AMDAdvanced Micro Devices Inc | 1.67% | 3.71% | 2.04% |
| METAMeta Platforms Inc | 2.13% | 3.07% | 0.94% |
71.6% of QQQ is already inside PEPS.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PEPS or QQQ?
PEPS has an expense ratio of 0.10% while QQQ charges 0.18%. PEPS is the cheaper option, by $8 a year on a $10,000 investment.
Which performed better, PEPS or QQQ?
Over the past year PEPS returned +16.40% vs +23.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), PEPS annualized +16.77% vs +22.01% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PEPS or QQQ?
QQQ has been the more volatile fund at 18.7% annualized versus 12.7% for PEPS. Worst drawdown: PEPS -21.0% vs QQQ -22.8%.
Should I hold both PEPS and QQQ?
PEPS and QQQ have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PEPS and QQQ?
71.6% of QQQ's money is in holdings PEPS also owns. 71.6% of QQQ's is in holdings PEPS also owns. They hold 36 positions in common, counted across the 195 positions we hold weights for in PEPS and 102 in QQQ.
Which pays a higher dividend, PEPS or QQQ?
PEPS yields 0.91% while QQQ yields 0.42%, so PEPS currently pays the higher dividend yield.
Is QQQ better than PEPS?
PEPS has a lower expense ratio. QQQ led over 1Y and the full window. PEPS is less concentrated, with 38.3% of the fund in its ten largest positions against 47.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.