PFRL vs QQQ
PGIM Floating Rate Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PFRL offers more diversification with 429 holdings.
Side-by-Side Comparison
| Metric | PFRL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.18% | |
| AUM | $125M | $496.3B | |
| Dividend Yield | 7.67% | 0.44% | |
| Holdings | 429 | 108 | |
| YTD Return | +3.72% | +16.64% | |
| 1Y Return | +5.75% | +27.27% | |
| 3Y Return (annualized) | +8.00% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 3.5% | 30.6% | |
| Max Drawdown | -8.8% | -83.0% | |
| Fund Family | PGIM Investments | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 17, 2022 | Mar 10, 1999 |
PFRL vs QQQ Performance
PGIM Floating Rate Income ETF (PFRL) is a ETF from PGIM Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PFRL returned +5.75% while QQQ returned +27.27%. Year to date, PFRL is up 3.72% versus a gain of 16.64% for QQQ.
Over three years, PFRL compounded at +8.00% per year against +25.96% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +8.03%. 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 3.5% for PFRL. 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 -8.8% for PFRL 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PFRL charges 0.72% per year while QQQ charges 0.18%. On a $10,000 position that is $72 vs $18 annually, a gap of $54 per year that compounds over a long holding period. On income, PFRL currently yields 7.67% against 0.44% for QQQ.
Holdings Overlap
PFRL and QQQ share 0 holdings out of 137 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, PFRL or QQQ?
PFRL has an expense ratio of 0.72% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, PFRL or QQQ?
Over the past year PFRL returned +5.75% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), PFRL annualized +8.03% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PFRL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.5% for PFRL. Worst drawdown: PFRL -8.8% vs QQQ -83.0%.
Should I hold both PFRL and QQQ?
PFRL and QQQ have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFRL and QQQ?
PFRL and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 137 unique securities.
Which pays a higher dividend, PFRL or QQQ?
PFRL yields 7.67% while QQQ yields 0.44%, so PFRL currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.