PFLD vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PFLD offers more diversification with 230 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: PFLD

Side-by-Side Comparison

MetricPFLDQQQWinner
Expense Ratio0.45%0.18%
AUM$413M$455.8B
Dividend Yield5.47%0.41%
Holdings324108
YTD Return+2.58%+18.31%
1Y Return+4.92%+25.37%
3Y Return (annualized)+4.33%+25.79%
5Y Return (annualized)+0.92%+15.20%
Volatility (annualized)9.1%30.6%
Max Drawdown-33.5%-83.0%
Fund FamilyAdvisors Asset Management, Inc.Invesco (US)
CategoryAllocation/BalancedEquity
InceptionNov 19, 2019Mar 10, 1999

PFLD vs QQQ Performance

AAM Low Duration Preferred and Income Securities ETF (PFLD) is a ETF from Advisors Asset Management, Inc. and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PFLD returned +4.92% while QQQ returned +25.37%. Year to date, PFLD is up 2.58% versus a gain of 18.31% for QQQ.

Over three years, PFLD compounded at +4.33% per year against +25.79% for QQQ; over five years the annualized figures are +0.92% and +15.20% respectively. Across the full 7-year window we track, QQQ has the edge at +13.10% annualized vs +1.24%. 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 9.1% for PFLD. 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 -33.5% for PFLD 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PFLD 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, PFLD currently yields 5.47% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

PFLD and QQQ share 0 holdings out of 333 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, PFLD or QQQ?

PFLD 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, PFLD or QQQ?

Over the past year PFLD returned +4.92% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), PFLD annualized +1.24% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, PFLD or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 9.1% for PFLD. Worst drawdown: PFLD -33.5% vs QQQ -83.0%.

Should I hold both PFLD and QQQ?

PFLD and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PFLD and QQQ?

PFLD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 333 unique securities.

Which pays a higher dividend, PFLD or QQQ?

PFLD yields 5.47% while QQQ yields 0.41%, so PFLD currently pays the higher dividend yield.

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