PFUT vs QQQ
Putnam Sustainable Future ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PFUT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.64% | 0.18% | |
| AUM | $4M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 72 | 108 | |
| YTD Return | +1.20% | +16.23% | |
| 1Y Return | +4.40% | +26.23% | |
| 3Y Return (annualized) | +10.99% | +25.75% | |
| 5Y Return (annualized) | +0.47% | +14.78% | |
| Volatility (annualized) | 20.0% | 30.6% | |
| Max Drawdown | -44.9% | -83.0% | |
| Fund Family | Putnam Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 25, 2021 | Mar 10, 1999 |
PFUT vs QQQ Performance
Putnam Sustainable Future ETF (PFUT) is a ETF from Putnam Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PFUT returned +4.40% while QQQ returned +26.23%. Year to date, PFUT is up 1.20% versus a gain of 16.23% for QQQ.
Over three years, PFUT compounded at +10.99% per year against +25.75% for QQQ; over five years the annualized figures are +0.47% and +14.78% respectively. Across the full 5-year window we track, QQQ has the edge at +13.02% annualized vs +0.61%. 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 20.0% for PFUT. 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 -44.9% for PFUT 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PFUT charges 0.64% per year while QQQ charges 0.18%. On a $10,000 position that is $64 vs $18 annually, a gap of $46 per year that compounds over a long holding period. On income, PFUT currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
PFUT and QQQ share 11 holdings out of 159 unique holdings combined, representing a 4.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PFUT or QQQ?
PFUT has an expense ratio of 0.64% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, PFUT or QQQ?
Over the past year PFUT returned +4.40% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), PFUT annualized +0.61% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, PFUT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.0% for PFUT. Worst drawdown: PFUT -44.9% vs QQQ -83.0%.
Should I hold both PFUT and QQQ?
PFUT and QQQ have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFUT and QQQ?
PFUT and QQQ share 11 common holdings with a 4.4% weight overlap. Combined, they hold 159 unique securities.
Which pays a higher dividend, PFUT or QQQ?
PFUT yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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