PFM vs QQQ
Invesco Dividend Achievers ETF vs Invesco QQQ Trust, Series 1
Which is better, PFM or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. PFM is less concentrated, with 30.4% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PFM | QQQ |
|---|---|---|
| Expense Ratio | 0.52% | 0.18%Best |
| AUM | $797M | $483.5B |
| Dividend Yield | 1.32% | 0.44% |
| Holdings | 434 | 107 |
| YTD Return | +10.20% | +16.87%Best |
| 1Y Return | +12.66% | +22.98%Best |
| 3Y Return (annualized) | +16.11% | +24.98%Best |
| 5Y Return (annualized) | +10.60% | +14.39%Best |
| Volatility (annualized) | 13.4%Best | 18.4% |
| Max Drawdown | -54.7% | -53.5%Best |
| $10,000 over 5 years | $16,549 | $19,586Best |
| Top 10 Weight | 30.4%Best | 46.5% |
| Fund Family | Invesco (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Sep 15, 2005 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2005 to Sep 11, 2026 (21 years).
PFM vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 21 years both funds cover.
PFM vs QQQ Performance
Invesco Dividend Achievers ETF (PFM) is an ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PFM returned +12.66% while QQQ returned +22.98%. Year to date, PFM is up 10.20% versus a gain of 16.87% for QQQ.
Over three years, PFM compounded at +16.11% per year against +24.98% for QQQ; over five years the annualized figures are +10.60% and +14.39% respectively. Across the full 21-year window we track, QQQ has the edge at +15.02% annualized vs +7.07%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.4% compared with 13.4% for PFM. 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 -54.7% for PFM and -53.5% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PFM charges 0.52% per year while QQQ charges 0.18%. On a $10,000 position that is $52 vs $18 annually, a gap of $34 per year that compounds over a long holding period. On income, PFM currently yields 1.32% against 0.44% for QQQ.
Holdings Overlap
29.0% of PFM's money is in holdings QQQ also owns. 36.1% of QQQ's money is in holdings PFM also owns.
The two portfolios partly overlap.
29 positions in common, counted across the 430 positions we hold weights for in PFM and 102 in QQQ, against full books of 434 and 107.
What only one of them owns
Our book lists 66 positions for QQQ that do not appear in our book for PFM (61.0% of the fund), and 365 for PFM that do not appear in QQQ (70.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PFM | Weight in QQQ | Difference |
|---|---|---|---|
| AAPLApple, Inc | 3.82% | 7.27% | 3.45% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 4.22% | 5.76% | 1.54% |
| AVGOBroadcom Inc | 3.61% | 3.16% | 0.45% |
| WMTWalmart, Inc. | 3.16% | 2.41% | 0.75% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.71% | 2.10% | 0.39% |
| COSTCostco Wholesale Corp. | 1.50% | 1.84% | 0.34% |
| LRCXLam Research Corp 3.125 06/15/2060 | 1.41% | 1.69% | 0.28% |
| TXNTexas Instruments, Inc | 0.92% | 1.12% | 0.20% |
| KLACKla Corp. | 0.91% | 1.11% | 0.20% |
| LINLinde Plc Ordinary Shares | 0.80% | 1.00% | 0.20% |
36.1% of QQQ is already inside PFM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PFM or QQQ?
PFM has an expense ratio of 0.52% while QQQ charges 0.18%. QQQ is the cheaper option, by $34 a year on a $10,000 investment.
Which performed better, PFM or QQQ?
Over the past year PFM returned +12.66% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), PFM annualized +7.07% vs +15.02% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PFM or QQQ?
QQQ has been the more volatile fund at 18.4% annualized versus 13.4% for PFM. Worst drawdown: PFM -54.7% vs QQQ -53.5%.
Should I hold both PFM and QQQ?
PFM and QQQ have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PFM and QQQ?
36.1% of QQQ's money is in holdings PFM also owns. 36.1% of QQQ's is in holdings PFM also owns. They hold 29 positions in common, counted across the 430 positions we hold weights for in PFM and 102 in QQQ.
Which pays a higher dividend, PFM or QQQ?
PFM yields 1.32% while QQQ yields 0.44%, so PFM currently pays the higher dividend yield.
Is QQQ better than PFM?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. PFM is less concentrated, with 30.4% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.