PFXF vs QQQ

PFXF vs QQQ

Which is better, PFXF or QQQ?

Preferred Stock against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.

Lower Fees: QQQHigher Returns: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricPFXFQQQ
Expense Ratio0.40%0.18%Best
AUM$2.4B$483.5B
Dividend Yield6.52%0.44%
Holdings122107
YTD Return+2.63%+21.71%Best
1Y Return+5.69%+25.89%Best
3Y Return (annualized)+9.42%+28.80%Best
5Y Return (annualized)+3.10%+15.67%Best
Volatility (annualized)10.1%Best17.5%
Max Drawdown-37.3%-35.1%Best
$10,000 over 5 years$11,649$20,706Best
Fund FamilyVanEckInvesco (US)
CategoryAllocation/BalancedEquity
StylePreferred StockLarge Cap Growth
InceptionJul 16, 2012Mar 10, 1999

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jul 17, 2012 to Sep 25, 2026 (14.2 years).

PFXF vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

PFXF vs QQQ Performance

VanEck Preferred Securities ex Financials ETF (PFXF) is an ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PFXF returned +5.69% while QQQ returned +25.89%. Year to date, PFXF is up 2.63% versus a gain of 21.71% for QQQ.

Over three years, PFXF compounded at +9.42% per year against +28.80% for QQQ; over five years the annualized figures are +3.10% and +15.67% respectively. Across the full 14-year window we track, QQQ has the edge at +19.21% annualized vs +1.71%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 10.1% 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 -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.

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 6.52% against 0.44% for QQQ.

Holdings Overlap

QQQ already in PFXF0.1%

At least 0.1% of QQQ's money is in holdings PFXF also owns.

Stated as a floor: for PFXF, our book for it covers 87.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 113 positions we hold weights for in PFXF and 102 in QQQ, against full books of 122 and 107.

Top Shared Holdings

StockWeight in PFXFWeight in QQQDifference
MSTRMicrostrategy Inc0.77%0.14%0.63%

You are not choosing between two funds in isolation.

Whichever of PFXF and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

PFXFQQQ

Free for up to 10 holdings. No account needed.

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, by $22 a year on a $10,000 investment.

Which performed better, PFXF or QQQ?

Over the past year PFXF returned +5.69% vs +25.89% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), PFXF annualized +1.71% vs +19.21% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PFXF or QQQ?

QQQ has been the more volatile fund at 17.5% annualized versus 10.1% for PFXF. Worst drawdown: PFXF -37.3% vs QQQ -35.1%.

Should I hold both PFXF and QQQ?

PFXF and QQQ have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, PFXF or QQQ?

PFXF yields 6.52% while QQQ yields 0.44%, so PFXF currently pays the higher dividend yield.

Is QQQ better than PFXF?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.