PFXF vs QQQ
VanEck Preferred Securities ex Financials ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PFXF offers more diversification with 122 holdings.
Side-by-Side Comparison
| Metric | PFXF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $2.4B | $496.3B | |
| Dividend Yield | 6.64% | 0.44% | |
| Holdings | 122 | 108 | |
| YTD Return | +3.26% | +16.23% | |
| 1Y Return | +8.10% | +26.23% | |
| 3Y Return (annualized) | +9.41% | +25.75% | |
| 5Y Return (annualized) | +3.20% | +14.78% | |
| Volatility (annualized) | 10.2% | 30.6% | |
| Max Drawdown | -37.3% | -83.0% | |
| Fund Family | VanEck | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jul 16, 2012 | Mar 10, 1999 |
PFXF vs QQQ Performance
VanEck Preferred Securities ex Financials ETF (PFXF) is a ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PFXF returned +8.10% while QQQ returned +26.23%. Year to date, PFXF is up 3.26% versus a gain of 16.23% for QQQ.
Over three years, PFXF compounded at +9.41% per year against +25.75% for QQQ; over five years the annualized figures are +3.20% and +14.78% respectively. Across the full 14-year window we track, QQQ has the edge at +13.02% annualized vs +1.76%. 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 10.2% for PFXF. 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 -37.3% for PFXF 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PFXF charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, PFXF currently yields 6.64% against 0.44% for QQQ.
Holdings Overlap
PFXF and QQQ share 1 holdings out of 135 unique holdings combined, representing a 3.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PFXF | Weight in QQQ | Difference |
|---|---|---|---|
| GOOG | 4.83% | 3.13% | 1.70% |
Frequently Asked Questions
Which is cheaper, PFXF or QQQ?
PFXF has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, PFXF or QQQ?
Over the past year PFXF returned +8.10% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), PFXF annualized +1.76% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, PFXF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.2% for PFXF. Worst drawdown: PFXF -37.3% vs QQQ -83.0%.
Should I hold both PFXF and QQQ?
PFXF and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFXF and QQQ?
PFXF and QQQ share 1 common holdings with a 3.1% weight overlap. Combined, they hold 135 unique securities.
Which pays a higher dividend, PFXF or QQQ?
PFXF yields 6.64% while QQQ yields 0.44%, so PFXF currently pays the higher dividend yield.
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