PML vs QQQ
PIMCO Municipal Income Fund II vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PML offers more diversification with 148 holdings.
Side-by-Side Comparison
| Metric | PML | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 4.81% | 0.18% | |
| AUM | $1.0B | $455.8B | |
| Dividend Yield | 5.83% | 0.41% | |
| Holdings | 364 | 108 | |
| YTD Return | +2.19% | +18.31% | |
| 1Y Return | +10.41% | +25.37% | |
| 3Y Return (annualized) | -0.39% | +25.79% | |
| 5Y Return (annualized) | -7.80% | +15.20% | |
| Volatility (annualized) | 15.5% | 30.6% | |
| Max Drawdown | -67.4% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 28, 2002 | Mar 10, 1999 |
PML vs QQQ Performance
PIMCO Municipal Income Fund II (PML) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PML returned +10.41% while QQQ returned +25.37%. Year to date, PML is up 2.19% versus a gain of 18.31% for QQQ.
Over three years, PML compounded at -0.39% per year against +25.79% for QQQ; over five years the annualized figures are -7.80% and +15.20% respectively. Across the full 24-year window we track, QQQ has the edge at +13.10% annualized vs -1.58%. 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 15.5% for PML. 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 -67.4% for PML 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PML charges 4.81% per year while QQQ charges 0.18%. On a $10,000 position that is $481 vs $18 annually, a gap of $463 per year that compounds over a long holding period. On income, PML currently yields 5.83% against 0.41% for QQQ.
Holdings Overlap
PML and QQQ share 0 holdings out of 251 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, PML or QQQ?
PML has an expense ratio of 4.81% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $463 per year of difference.
Which performed better, PML or QQQ?
Over the past year PML returned +10.41% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), PML annualized -1.58% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, PML or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.5% for PML. Worst drawdown: PML -67.4% vs QQQ -83.0%.
Should I hold both PML and QQQ?
PML and QQQ have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PML and QQQ?
PML and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 251 unique securities.
Which pays a higher dividend, PML or QQQ?
PML yields 5.83% while QQQ yields 0.41%, so PML currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.