PEZ vs QQQ
Invesco Dorsey Wright Consumer Cyclicals Momentum 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 103 holdings.
Side-by-Side Comparison
| Metric | PEZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $22M | $455.8B | |
| Dividend Yield | 0.24% | 0.41% | |
| Holdings | 48 | 108 | |
| YTD Return | -2.64% | +19.68% | |
| 1Y Return | +1.46% | +26.75% | |
| 3Y Return (annualized) | +13.40% | +26.25% | |
| 5Y Return (annualized) | +2.72% | +15.39% | |
| Volatility (annualized) | 21.7% | 30.6% | |
| Max Drawdown | -59.0% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 12, 2006 | Mar 10, 1999 |
PEZ vs QQQ Performance
Invesco Dorsey Wright Consumer Cyclicals Momentum ETF (PEZ) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PEZ returned +1.46% while QQQ returned +26.75%. Year to date, PEZ is down 2.64% versus a gain of 19.68% for QQQ.
Over three years, PEZ compounded at +13.40% per year against +26.25% for QQQ; over five years the annualized figures are +2.72% and +15.39% respectively. Across the full 20-year window we track, QQQ has the edge at +13.15% annualized vs +7.34%. 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 21.7% for PEZ. 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 -59.0% for PEZ 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PEZ charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, PEZ currently yields 0.24% against 0.41% for QQQ.
Holdings Overlap
PEZ and QQQ share 4 holdings out of 144 unique holdings combined, representing a 4.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PEZ or QQQ?
PEZ has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, PEZ or QQQ?
Over the past year PEZ returned +1.46% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), PEZ annualized +7.34% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, PEZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.7% for PEZ. Worst drawdown: PEZ -59.0% vs QQQ -83.0%.
Should I hold both PEZ and QQQ?
PEZ and QQQ have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PEZ and QQQ?
PEZ and QQQ share 4 common holdings with a 4.6% weight overlap. Combined, they hold 144 unique securities.
Which pays a higher dividend, PEZ or QQQ?
PEZ yields 0.24% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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