PFF vs QQQ
iShares Preferred and Income Securities ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PFF offers more diversification with 464 holdings.
Side-by-Side Comparison
| Metric | PFF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.18% | |
| AUM | $13.3B | $496.3B | |
| Dividend Yield | 5.51% | 0.44% | |
| Holdings | 464 | 108 | |
| YTD Return | +1.10% | +19.52% | |
| 1Y Return | +2.98% | +26.68% | |
| 3Y Return (annualized) | +6.74% | +26.64% | |
| 5Y Return (annualized) | +1.02% | +15.36% | |
| Volatility (annualized) | 15.3% | 30.6% | |
| Max Drawdown | -70.2% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Mar 26, 2007 | Mar 10, 1999 |
PFF vs QQQ Performance
iShares Preferred and Income Securities ETF (PFF) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PFF returned +2.98% while QQQ returned +26.68%. Year to date, PFF is up 1.10% versus a gain of 19.52% for QQQ.
Over three years, PFF compounded at +6.74% per year against +26.64% for QQQ; over five years the annualized figures are +1.02% and +15.36% respectively. Across the full 19-year window we track, QQQ has the edge at +13.14% annualized vs -0.84%. 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 15.3% for PFF. 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 -70.2% for PFF 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PFF charges 0.45% per year while QQQ charges 0.18%. On a $10,000 position that is $45 vs $18 annually, a gap of $27 per year that compounds over a long holding period. On income, PFF currently yields 5.51% against 0.44% for QQQ.
Holdings Overlap
PFF and QQQ share 5 holdings out of 308 unique holdings combined, representing a 3.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PFF or QQQ?
PFF has an expense ratio of 0.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, PFF or QQQ?
Over the past year PFF returned +2.98% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), PFF annualized -0.84% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, PFF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.3% for PFF. Worst drawdown: PFF -70.2% vs QQQ -83.0%.
Should I hold both PFF and QQQ?
PFF and QQQ have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFF and QQQ?
PFF and QQQ share 5 common holdings with a 3.1% weight overlap. Combined, they hold 308 unique securities.
Which pays a higher dividend, PFF or QQQ?
PFF yields 5.51% while QQQ yields 0.44%, so PFF currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.