PFL vs QQQ
PIMCO Income Strategy Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PFL offers more diversification with 401 holdings.
Side-by-Side Comparison
| Metric | PFL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.37% | 0.18% | |
| AUM | $386M | $455.8B | |
| Dividend Yield | 12.79% | 0.41% | |
| Holdings | 401 | 108 | |
| YTD Return | -1.82% | +19.68% | |
| 1Y Return | +2.26% | +26.75% | |
| 3Y Return (annualized) | +10.31% | +26.25% | |
| 5Y Return (annualized) | +0.94% | +15.39% | |
| Volatility (annualized) | 19.7% | 30.6% | |
| Max Drawdown | -82.2% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 26, 2003 | Mar 10, 1999 |
PFL vs QQQ Performance
PIMCO Income Strategy Fund (PFL) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PFL returned +2.26% while QQQ returned +26.75%. Year to date, PFL is down 1.82% versus a gain of 19.68% for QQQ.
Over three years, PFL compounded at +10.31% per year against +26.25% for QQQ; over five years the annualized figures are +0.94% and +15.39% respectively. Across the full 23-year window we track, QQQ has the edge at +13.15% annualized vs -1.48%. 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 19.7% for PFL. 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 -82.2% for PFL 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PFL charges 1.37% per year while QQQ charges 0.18%. On a $10,000 position that is $137 vs $18 annually, a gap of $119 per year that compounds over a long holding period. On income, PFL currently yields 12.79% against 0.41% for QQQ.
Holdings Overlap
PFL and QQQ share 0 holdings out of 124 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PFL or QQQ?
PFL has an expense ratio of 1.37% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $119 per year of difference.
Which performed better, PFL or QQQ?
Over the past year PFL returned +2.26% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), PFL annualized -1.48% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, PFL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.7% for PFL. Worst drawdown: PFL -82.2% vs QQQ -83.0%.
Should I hold both PFL and QQQ?
PFL and QQQ have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFL and QQQ?
PFL and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 124 unique securities.
Which pays a higher dividend, PFL or QQQ?
PFL yields 12.79% while QQQ yields 0.41%, so PFL currently pays the higher dividend yield.
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