PQDI vs QQQ
Principal Spectrum Preferred and Income 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 | PQDI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $70M | $496.3B | |
| Dividend Yield | 5.61% | 0.44% | |
| Holdings | 95 | 108 | |
| YTD Return | +1.62% | +16.19% | |
| 1Y Return | +4.83% | +25.22% | |
| 3Y Return (annualized) | +8.57% | +25.47% | |
| 5Y Return (annualized) | +3.01% | +14.34% | |
| Volatility (annualized) | 6.3% | 30.6% | |
| Max Drawdown | -17.4% | -83.0% | |
| Fund Family | Principal Funds | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 16, 2020 | Mar 10, 1999 |
PQDI vs QQQ Performance
Principal Spectrum Preferred and Income ETF (PQDI) is a ETF from Principal Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PQDI returned +4.83% while QQQ returned +25.22%. Year to date, PQDI is up 1.62% versus a gain of 16.19% for QQQ.
Over three years, PQDI compounded at +8.57% per year against +25.47% for QQQ; over five years the annualized figures are +3.01% and +14.34% respectively. Across the full 6-year window we track, QQQ has the edge at +13.01% annualized vs +4.01%. 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 6.3% for PQDI. 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 -17.4% for PQDI 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PQDI 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, PQDI currently yields 5.61% against 0.44% for QQQ.
Holdings Overlap
PQDI and QQQ share 0 holdings out of 174 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, PQDI or QQQ?
PQDI 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, PQDI or QQQ?
Over the past year PQDI returned +4.83% vs +25.22% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), PQDI annualized +4.01% vs +13.01% for QQQ. Past performance does not guarantee future results.
Which is riskier, PQDI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.3% for PQDI. Worst drawdown: PQDI -17.4% vs QQQ -83.0%.
Should I hold both PQDI and QQQ?
PQDI and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PQDI and QQQ?
PQDI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 174 unique securities.
Which pays a higher dividend, PQDI or QQQ?
PQDI yields 5.61% while QQQ yields 0.44%, so PQDI currently pays the higher dividend yield.
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