PGZ vs QQQ
Principal Real Estate Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PGZ offers more diversification with 110 holdings.
Side-by-Side Comparison
| Metric | PGZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.16% | 0.18% | |
| AUM | $74M | $496.3B | |
| Dividend Yield | 11.39% | 0.44% | |
| Holdings | 110 | 108 | |
| YTD Return | +7.59% | +17.07% | |
| 1Y Return | +7.09% | +26.39% | |
| 3Y Return (annualized) | +14.79% | +26.08% | |
| 5Y Return (annualized) | +2.53% | +15.18% | |
| Volatility (annualized) | 21.2% | 30.6% | |
| Max Drawdown | -68.8% | -83.0% | |
| Fund Family | Principal Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 26, 2013 | Mar 10, 1999 |
PGZ vs QQQ Performance
Principal Real Estate Income Fund (PGZ) is a ETF from Principal Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PGZ returned +7.09% while QQQ returned +26.39%. Year to date, PGZ is up 7.59% versus a gain of 17.07% for QQQ.
Over three years, PGZ compounded at +14.79% per year against +26.08% for QQQ; over five years the annualized figures are +2.53% and +15.18% respectively. Across the full 20-year window we track, QQQ has the edge at +13.05% annualized vs -1.66%. 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 21.2% for PGZ. 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 -68.8% for PGZ 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PGZ charges 2.16% per year while QQQ charges 0.18%. On a $10,000 position that is $216 vs $18 annually, a gap of $198 per year that compounds over a long holding period. On income, PGZ currently yields 11.39% against 0.44% for QQQ.
Holdings Overlap
PGZ and QQQ share 0 holdings out of 163 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, PGZ or QQQ?
PGZ has an expense ratio of 2.16% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $198 per year of difference.
Which performed better, PGZ or QQQ?
Over the past year PGZ returned +7.09% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), PGZ annualized -1.66% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, PGZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.2% for PGZ. Worst drawdown: PGZ -68.8% vs QQQ -83.0%.
Should I hold both PGZ and QQQ?
PGZ and QQQ have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PGZ and QQQ?
PGZ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 163 unique securities.
Which pays a higher dividend, PGZ or QQQ?
PGZ yields 11.39% while QQQ yields 0.44%, so PGZ currently pays the higher dividend yield.
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