PFO vs QQQ

Quick Verdict

QQQ delivered stronger 1-year returns. PFO offers more diversification with 260 holdings.

Lower Fees: TiedHigher Returns: QQQMore Diversified: PFO

Side-by-Side Comparison

MetricPFOQQQWinner
Expense Ratio-0.18%
AUM$132M$455.8B
Dividend Yield6.60%0.41%
Holdings260108
YTD Return+0.72%+19.68%
1Y Return+5.75%+26.75%
3Y Return (annualized)+12.55%+26.25%
5Y Return (annualized)-0.34%+15.39%
Volatility (annualized)18.3%30.6%
Max Drawdown-83.2%-83.0%
Fund FamilyFlaherty & CrumrineInvesco (US)
CategoryAllocation/BalancedEquity
InceptionFeb 13, 1992Mar 10, 1999

PFO vs QQQ Performance

Flaherty & Crumrine Preferred Income Opportunity Fund Inc (PFO) is a ETF from Flaherty & Crumrine and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PFO returned +5.75% while QQQ returned +26.75%. Year to date, PFO is up 0.72% versus a gain of 19.68% for QQQ.

Over three years, PFO compounded at +12.55% per year against +26.25% for QQQ; over five years the annualized figures are -0.34% and +15.39% respectively. Across the full 27-year window we track, QQQ has the edge at +13.15% annualized vs +0.85%. 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 18.3% for PFO. 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 -83.2% for PFO 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.

Holdings Overlap

0.2%overlap

PFO and QQQ share 1 holdings out of 279 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PFOWeight in QQQDifference
XEL0.40%0.22%0.18%

Frequently Asked Questions

Which performed better, PFO or QQQ?

Over the past year PFO returned +5.75% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), PFO annualized +0.85% vs +13.15% for QQQ. Past performance does not guarantee future results.

Which is riskier, PFO or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 18.3% for PFO. Worst drawdown: PFO -83.2% vs QQQ -83.0%.

Should I hold both PFO and QQQ?

PFO and QQQ have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PFO and QQQ?

PFO and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 279 unique securities.

Which pays a higher dividend, PFO or QQQ?

PFO yields 6.60% while QQQ yields 0.41%, so PFO currently pays the higher dividend yield.

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