PEY vs QQQ
Invesco High Yield Equity Dividend Achievers ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PEY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.54% | 0.18% | |
| AUM | $1.2B | $496.3B | |
| Dividend Yield | 4.22% | 0.44% | |
| Holdings | 52 | 108 | |
| YTD Return | +25.94% | +16.64% | |
| 1Y Return | +24.88% | +27.27% | |
| 3Y Return (annualized) | +13.35% | +25.96% | |
| 5Y Return (annualized) | +9.18% | +14.54% | |
| Volatility (annualized) | 17.7% | 30.6% | |
| Max Drawdown | -75.6% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 9, 2004 | Mar 10, 1999 |
PEY vs QQQ Performance
Invesco High Yield Equity Dividend Achievers ETF (PEY) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PEY returned +24.88% while QQQ returned +27.27%. Year to date, PEY is up 25.94% versus a gain of 16.64% for QQQ.
Over three years, PEY compounded at +13.35% per year against +25.96% for QQQ; over five years the annualized figures are +9.18% and +14.54% respectively. Across the full 22-year window we track, QQQ has the edge at +13.03% annualized vs +3.67%. 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 17.7% for PEY. 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 -75.6% for PEY 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PEY charges 0.54% per year while QQQ charges 0.18%. On a $10,000 position that is $54 vs $18 annually, a gap of $36 per year that compounds over a long holding period. On income, PEY currently yields 4.22% against 0.44% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, PEY or QQQ?
PEY has an expense ratio of 0.54% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, PEY or QQQ?
Over the past year PEY returned +24.88% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (22 years), PEY annualized +3.67% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PEY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.7% for PEY. Worst drawdown: PEY -75.6% vs QQQ -83.0%.
Should I hold both PEY and QQQ?
PEY and QQQ have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PEY and QQQ?
PEY and QQQ share 2 common holdings with a 0.6% weight overlap. Combined, they hold 150 unique securities.
Which pays a higher dividend, PEY or QQQ?
PEY yields 4.22% while QQQ yields 0.44%, so PEY currently pays the higher dividend yield.
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