PFM vs QQQ
Invesco Dividend Achievers ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PFM offers more diversification with 434 holdings.
Side-by-Side Comparison
| Metric | PFM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.52% | 0.18% | |
| AUM | $814M | $496.3B | |
| Dividend Yield | 1.32% | 0.44% | |
| Holdings | 434 | 108 | |
| YTD Return | +11.41% | +16.23% | |
| 1Y Return | +17.26% | +26.23% | |
| 3Y Return (annualized) | +16.69% | +25.75% | |
| 5Y Return (annualized) | +10.62% | +14.78% | |
| Volatility (annualized) | 13.4% | 30.6% | |
| Max Drawdown | -54.7% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 15, 2005 | Mar 10, 1999 |
PFM vs QQQ Performance
Invesco Dividend Achievers ETF (PFM) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PFM returned +17.26% while QQQ returned +26.23%. Year to date, PFM is up 11.41% versus a gain of 16.23% for QQQ.
Over three years, PFM compounded at +16.69% per year against +25.75% for QQQ; over five years the annualized figures are +10.62% and +14.78% respectively. Across the full 21-year window we track, QQQ has the edge at +13.02% annualized vs +7.15%. 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 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 -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 0.75. 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
PFM and QQQ share 30 holdings out of 502 unique holdings combined, representing a 27.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $34 per year of difference.
Which performed better, PFM or QQQ?
Over the past year PFM returned +17.26% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), PFM annualized +7.15% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, PFM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.4% for PFM. Worst drawdown: PFM -54.7% vs QQQ -83.0%.
Should I hold both PFM and QQQ?
PFM and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFM and QQQ?
PFM and QQQ share 30 common holdings with a 27.5% weight overlap. Combined, they hold 502 unique securities.
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.
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