PMM vs QQQ
Putnam Managed Municipal Income Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PMM offers more diversification with 396 holdings.
Side-by-Side Comparison
| Metric | PMM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.18% | |
| AUM | $2,812.2 | $496.3B | |
| Dividend Yield | 5.04% | 0.44% | |
| Holdings | 396 | 108 | |
| YTD Return | +4.38% | +16.64% | |
| 1Y Return | +13.82% | +27.27% | |
| 3Y Return (annualized) | +8.39% | +25.96% | |
| 5Y Return (annualized) | -1.20% | +14.54% | |
| Volatility (annualized) | 13.4% | 30.6% | |
| Max Drawdown | -63.9% | -83.0% | |
| Fund Family | Putnam Investments | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 24, 1989 | Mar 10, 1999 |
PMM vs QQQ Performance
Putnam Managed Municipal Income Trust (PMM) is a ETF from Putnam Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PMM returned +13.82% while QQQ returned +27.27%. Year to date, PMM is up 4.38% versus a gain of 16.64% for QQQ.
Over three years, PMM compounded at +8.39% per year against +25.96% for QQQ; over five years the annualized figures are -1.20% and +14.54% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs -0.90%. 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 13.4% for PMM. 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 -63.9% for PMM 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PMM charges 0.98% per year while QQQ charges 0.18%. On a $10,000 position that is $98 vs $18 annually, a gap of $80 per year that compounds over a long holding period. On income, PMM currently yields 5.04% against 0.44% for QQQ.
Holdings Overlap
PMM and QQQ share 0 holdings out of 226 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, PMM or QQQ?
PMM has an expense ratio of 0.98% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $80 per year of difference.
Which performed better, PMM or QQQ?
Over the past year PMM returned +13.82% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), PMM annualized -0.90% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PMM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.4% for PMM. Worst drawdown: PMM -63.9% vs QQQ -83.0%.
Should I hold both PMM and QQQ?
PMM and QQQ have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PMM and QQQ?
PMM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 226 unique securities.
Which pays a higher dividend, PMM or QQQ?
PMM yields 5.04% while QQQ yields 0.44%, so PMM 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.