PFD vs QQQ

Quick Verdict

QQQ delivered stronger 1-year returns. PFD offers more diversification with 180 holdings.

Lower Fees: TiedHigher Returns: QQQMore Diversified: PFD

Side-by-Side Comparison

MetricPFDQQQWinner
Expense Ratio-0.18%
AUM$159M$455.8B
Dividend Yield6.46%0.41%
Holdings245108
YTD Return-0.49%+17.46%
1Y Return+6.48%+26.02%
3Y Return (annualized)+11.49%+25.51%
5Y Return (annualized)-0.70%+15.12%
Volatility (annualized)19.6%30.6%
Max Drawdown-85.8%-83.0%
Fund FamilyFlaherty & CrumrineInvesco (US)
CategoryAllocation/BalancedEquity
InceptionJan 31, 1991Mar 10, 1999

PFD vs QQQ Performance

Flaherty & Crumrine Preferred Income Fund Inc (PFD) is a ETF from Flaherty & Crumrine and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PFD returned +6.48% while QQQ returned +26.02%. Year to date, PFD is down 0.49% versus a gain of 17.46% for QQQ.

Over three years, PFD compounded at +11.49% per year against +25.51% for QQQ; over five years the annualized figures are -0.70% and +15.12% respectively. Across the full 27-year window we track, QQQ has the edge at +13.08% annualized vs +0.61%. 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 19.6% for PFD. 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 -85.8% for PFD 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.

Holdings Overlap

0.2%overlap

PFD and QQQ share 1 holdings out of 282 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PFDWeight in QQQDifference
XEL0.39%0.22%0.17%

Frequently Asked Questions

Which performed better, PFD or QQQ?

Over the past year PFD returned +6.48% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), PFD annualized +0.61% vs +13.08% for QQQ. Past performance does not guarantee future results.

Which is riskier, PFD or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 19.6% for PFD. Worst drawdown: PFD -85.8% vs QQQ -83.0%.

Should I hold both PFD and QQQ?

PFD and QQQ have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PFD and QQQ?

PFD and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 282 unique securities.

Which pays a higher dividend, PFD or QQQ?

PFD yields 6.46% while QQQ yields 0.41%, so PFD currently pays the higher dividend yield.

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