PMFB vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricPMFBQQQWinner
Expense Ratio0.50%0.18%
AUM$6M$455.8B
Dividend Yield0.00%0.41%
Holdings6108
YTD Return+3.57%+17.46%
1Y Return+6.87%+26.02%
3Y Return (annualized)-+25.51%
5Y Return (annualized)-+15.12%
Volatility (annualized)2.5%30.6%
Max Drawdown-2.9%-83.0%
Fund FamilyPGIM InvestmentsInvesco (US)
CategoryAlternativeEquity
InceptionJan 31, 2025Mar 10, 1999

PMFB vs QQQ Performance

PGIM S&P 500 Max Buffer ETF - February (PMFB) is a ETF from PGIM Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PMFB returned +6.87% while QQQ returned +26.02%. Year to date, PMFB is up 3.57% versus a gain of 17.46% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 2.5% for PMFB. 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 -2.9% for PMFB 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PMFB charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, PMFB currently yields 0.00% against 0.41% for QQQ.

Frequently Asked Questions

Which is cheaper, PMFB or QQQ?

PMFB has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.

Which performed better, PMFB or QQQ?

Over the past year PMFB returned +6.87% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), PMFB annualized +6.59% vs +13.08% for QQQ. Past performance does not guarantee future results.

Which is riskier, PMFB or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 2.5% for PMFB. Worst drawdown: PMFB -2.9% vs QQQ -83.0%.

Should I hold both PMFB and QQQ?

PMFB and QQQ have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, PMFB or QQQ?

PMFB yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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