PHEQ vs QQQ
Parametric Hedged Equity ETF vs Invesco QQQ Trust, Series 1
Which is better, PHEQ or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. PHEQ is less concentrated, with 38.8% of the fund in its ten largest positions against 46.5%.
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
| Metric | PHEQ | QQQ |
|---|---|---|
| Expense Ratio | 0.29% | 0.18%Best |
| AUM | $144M | $486.1B |
| Dividend Yield | 0.94% | 0.44% |
| Holdings | 184 | 107 |
| YTD Return | +8.60% | +17.54%Best |
| 1Y Return | +12.78% | +25.59%Best |
| 3Y Return (annualized) | +15.16% | +24.63%Best |
| 5Y Return (annualized) | - | +14.18% |
| Volatility (annualized) | 6.8%Best | 17.4% |
| Max Drawdown | -12.6%Best | -22.8% |
| $10,000 over 2.9 years | $15,058 | $20,405Best |
| Top 10 Weight | 38.8%Best | 46.5% |
| Fund Family | Parametric | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Oct 16, 2023 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Oct 19, 2023 to Sep 4, 2026 (2.9 years).
PHEQ 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 covers the 2.9 years both funds cover.
PHEQ vs QQQ Performance
Parametric Hedged Equity ETF (PHEQ) is an ETF from Parametric and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PHEQ returned +12.78% while QQQ returned +25.59%. Year to date, PHEQ is up 8.60% versus a gain of 17.54% for QQQ.
Over three years, PHEQ compounded at +15.16% per year against +24.63% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.4% compared with 6.8% for PHEQ. 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 -12.6% for PHEQ and -22.8% 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PHEQ charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, PHEQ currently yields 0.94% against 0.44% for QQQ.
Holdings Overlap
51.8% of PHEQ's money is in holdings QQQ also owns. 74.9% of QQQ's money is in holdings PHEQ also owns.
Most of QQQ is already inside PHEQ. Owning both mostly buys the same companies twice.
40 positions in common, counted across the 171 positions we hold weights for in PHEQ and 102 in QQQ, against full books of 184 and 107.
What only one of them owns
Our book lists 54 positions for QQQ that do not appear in our book for PHEQ (21.9% of the fund), and 122 for PHEQ that do not appear in QQQ (48.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PHEQ | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 7.32% | 8.44% | 1.12% |
| AAPLApple Inc Ord | 8.25% | 7.27% | 0.98% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 4.70% | 5.76% | 1.06% |
| AMZNAmazon.Com Inc | 3.70% | 4.67% | 0.97% |
| GOOGL Alphabet Inc. Class A | 3.27% | 3.36% | 0.09% |
| AVGOBroadcom Inc | 2.91% | 3.16% | 0.25% |
| GOOGAlphabet, Inc., Class C | 2.85% | 3.13% | 0.28% |
| MUMicron Technology, Inc. | 1.39% | 4.43% | 3.04% |
| METAMeta Platform Inc | 2.07% | 2.78% | 0.71% |
| AMDAdvanced Micro Devices Inc | 0.82% | 3.45% | 2.63% |
74.9% of QQQ is already inside PHEQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PHEQ or QQQ?
PHEQ has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option, by $11 a year on a $10,000 investment.
Which performed better, PHEQ or QQQ?
Over the past year PHEQ returned +12.78% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PHEQ or QQQ?
QQQ has been the more volatile fund at 17.4% annualized versus 6.8% for PHEQ. Worst drawdown: PHEQ -12.6% vs QQQ -22.8%.
Should I hold both PHEQ and QQQ?
PHEQ and QQQ have a monthly-return correlation of 0.88, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PHEQ and QQQ?
74.9% of QQQ's money is in holdings PHEQ also owns. 74.9% of QQQ's is in holdings PHEQ also owns. They hold 40 positions in common, counted across the 171 positions we hold weights for in PHEQ and 102 in QQQ.
Which pays a higher dividend, PHEQ or QQQ?
PHEQ yields 0.94% while QQQ yields 0.44%, so PHEQ currently pays the higher dividend yield.
Is QQQ better than PHEQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. PHEQ is less concentrated, with 38.8% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.