PHK vs QQQ
PIMCO High Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | PHK | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.92% | 0.18% | |
| AUM | $845M | $455.8B | |
| Dividend Yield | 12.72% | 0.41% | |
| Holdings | 468 | 108 | |
| YTD Return | +3.21% | +18.31% | |
| 1Y Return | +7.56% | +25.37% | |
| 3Y Return (annualized) | +10.04% | +25.79% | |
| 5Y Return (annualized) | +3.61% | +15.20% | |
| Volatility (annualized) | 26.4% | 30.6% | |
| Max Drawdown | -80.9% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 30, 2003 | Mar 10, 1999 |
PHK vs QQQ Performance
PIMCO High Income Fund (PHK) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PHK returned +7.56% while QQQ returned +25.37%. Year to date, PHK is up 3.21% versus a gain of 18.31% for QQQ.
Over three years, PHK compounded at +10.04% per year against +25.79% for QQQ; over five years the annualized figures are +3.61% and +15.20% respectively. Across the full 23-year window we track, QQQ has the edge at +13.10% annualized vs -2.33%. 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 26.4% for PHK. 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 -80.9% for PHK 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PHK charges 2.92% per year while QQQ charges 0.18%. On a $10,000 position that is $292 vs $18 annually, a gap of $274 per year that compounds over a long holding period. On income, PHK currently yields 12.72% against 0.41% for QQQ.
Holdings Overlap
PHK and QQQ share 0 holdings out of 125 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, PHK or QQQ?
PHK has an expense ratio of 2.92% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $274 per year of difference.
Which performed better, PHK or QQQ?
Over the past year PHK returned +7.56% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), PHK annualized -2.33% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, PHK or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 26.4% for PHK. Worst drawdown: PHK -80.9% vs QQQ -83.0%.
Should I hold both PHK and QQQ?
PHK and QQQ have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHK and QQQ?
PHK and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 125 unique securities.
Which pays a higher dividend, PHK or QQQ?
PHK yields 12.72% while QQQ yields 0.41%, so PHK currently pays the higher dividend yield.
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