PHDG vs QQQ
Invesco S&P 500 Downside Hedged ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PHDG offers more diversification with 494 holdings.
Side-by-Side Comparison
| Metric | PHDG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $61M | $455.8B | |
| Dividend Yield | 1.68% | 0.41% | |
| Holdings | 514 | 108 | |
| YTD Return | +12.47% | +18.31% | |
| 1Y Return | +16.44% | +25.37% | |
| 3Y Return (annualized) | +9.60% | +25.79% | |
| 5Y Return (annualized) | +4.60% | +15.20% | |
| Volatility (annualized) | 9.9% | 30.6% | |
| Max Drawdown | -23.6% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 5, 2012 | Mar 10, 1999 |
PHDG vs QQQ Performance
Invesco S&P 500 Downside Hedged ETF (PHDG) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PHDG returned +16.44% while QQQ returned +25.37%. Year to date, PHDG is up 12.47% versus a gain of 18.31% for QQQ.
Over three years, PHDG compounded at +9.60% per year against +25.79% for QQQ; over five years the annualized figures are +4.60% and +15.20% respectively. Across the full 14-year window we track, QQQ has the edge at +13.10% annualized vs +4.41%. 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 9.9% for PHDG. 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 -23.6% for PHDG 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PHDG charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, PHDG currently yields 1.68% against 0.41% for QQQ.
Holdings Overlap
PHDG and QQQ share 85 holdings out of 512 unique holdings combined, representing a 40.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PHDG or QQQ?
PHDG has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, PHDG or QQQ?
Over the past year PHDG returned +16.44% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), PHDG annualized +4.41% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, PHDG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.9% for PHDG. Worst drawdown: PHDG -23.6% vs QQQ -83.0%.
Should I hold both PHDG and QQQ?
PHDG and QQQ have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHDG and QQQ?
PHDG and QQQ share 85 common holdings with a 40.5% weight overlap. Combined, they hold 512 unique securities.
Which pays a higher dividend, PHDG or QQQ?
PHDG yields 1.68% while QQQ yields 0.41%, so PHDG currently pays the higher dividend yield.
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