PNQI vs QQQ
Invesco Nasdaq Internet ETF 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 108 holdings.
Side-by-Side Comparison
| Metric | PNQI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $543M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 80 | 108 | |
| YTD Return | -2.84% | +16.64% | |
| 1Y Return | -1.71% | +27.27% | |
| 3Y Return (annualized) | +18.94% | +25.96% | |
| 5Y Return (annualized) | +0.97% | +14.54% | |
| Volatility (annualized) | 22.9% | 30.6% | |
| Max Drawdown | -59.7% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2008 | Mar 10, 1999 |
PNQI vs QQQ Performance
Invesco Nasdaq Internet ETF (PNQI) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PNQI returned -1.71% while QQQ returned +27.27%. Year to date, PNQI is down 2.84% versus a gain of 16.64% for QQQ.
Over three years, PNQI compounded at +18.94% per year against +25.96% for QQQ; over five years the annualized figures are +0.97% and +14.54% respectively. Across the full 18-year window we track, PNQI has the edge at +13.86% annualized vs +13.03%. 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 22.9% for PNQI. 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 -59.7% for PNQI 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PNQI charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, PNQI currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
PNQI and QQQ share 14 holdings out of 166 unique holdings combined, representing a 28.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PNQI or QQQ?
PNQI has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, PNQI or QQQ?
Over the past year PNQI returned -1.71% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), PNQI annualized +13.86% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PNQI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.9% for PNQI. Worst drawdown: PNQI -59.7% vs QQQ -83.0%.
Should I hold both PNQI and QQQ?
PNQI and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PNQI and QQQ?
PNQI and QQQ share 14 common holdings with a 28.6% weight overlap. Combined, they hold 166 unique securities.
Which pays a higher dividend, PNQI or QQQ?
PNQI yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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