PNI vs QQQ
PIMCO New York Municipal Income Fund II vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PNI offers more diversification with 148 holdings.
Side-by-Side Comparison
| Metric | PNI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.31% | 0.18% | |
| AUM | $190M | $496.3B | |
| Dividend Yield | 4.63% | 0.44% | |
| Holdings | 148 | 108 | |
| YTD Return | +2.22% | +16.64% | |
| 1Y Return | +9.52% | +27.27% | |
| 3Y Return (annualized) | +3.03% | +25.96% | |
| 5Y Return (annualized) | -6.05% | +14.54% | |
| Volatility (annualized) | 17.8% | 30.6% | |
| Max Drawdown | -64.2% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 28, 2002 | Mar 10, 1999 |
PNI vs QQQ Performance
PIMCO New York Municipal Income Fund II (PNI) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PNI returned +9.52% while QQQ returned +27.27%. Year to date, PNI is up 2.22% versus a gain of 16.64% for QQQ.
Over three years, PNI compounded at +3.03% per year against +25.96% for QQQ; over five years the annualized figures are -6.05% and +14.54% respectively. Across the full 24-year window we track, QQQ has the edge at +13.03% annualized vs -2.12%. 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 17.8% for PNI. 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 -64.2% for PNI 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PNI charges 1.31% per year while QQQ charges 0.18%. On a $10,000 position that is $131 vs $18 annually, a gap of $113 per year that compounds over a long holding period. On income, PNI currently yields 4.63% against 0.44% for QQQ.
Holdings Overlap
PNI and QQQ share 0 holdings out of 159 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, PNI or QQQ?
PNI has an expense ratio of 1.31% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $113 per year of difference.
Which performed better, PNI or QQQ?
Over the past year PNI returned +9.52% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), PNI annualized -2.12% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PNI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.8% for PNI. Worst drawdown: PNI -64.2% vs QQQ -83.0%.
Should I hold both PNI and QQQ?
PNI and QQQ have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PNI and QQQ?
PNI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 159 unique securities.
Which pays a higher dividend, PNI or QQQ?
PNI yields 4.63% while QQQ yields 0.44%, so PNI currently pays the higher dividend yield.
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