PRFD vs QQQ
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund vs Invesco QQQ Trust, Series 1
Which is better, PRFD or QQQ?
Municipal Bond against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PRFD | QQQ |
|---|---|---|
| Expense Ratio | 0.73% | 0.18%Best |
| AUM | $236M | $483.5B |
| Dividend Yield | 5.84% | 0.44% |
| Holdings | 242 | 107 |
| YTD Return | +0.42% | +15.21%Best |
| 1Y Return | +1.88% | +19.78%Best |
| 3Y Return (annualized) | +8.35% | +24.58%Best |
| 5Y Return (annualized) | - | +13.93% |
| Volatility (annualized) | 6.8%Best | 17.2% |
| Max Drawdown | -11.9%Best | -22.8% |
| $10,000 over 3.7 years | $12,238 | $26,429Best |
| Fund Family | PIMCO (US) | Invesco (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Growth |
| Inception | Jan 18, 2023 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3.7 years row, are measured over the window both funds cover: Jan 19, 2023 to Sep 16, 2026 (3.7 years).
PRFD vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3.7 years both funds cover.
PRFD vs QQQ Performance
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund (PRFD) is an ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PRFD returned +1.88% while QQQ returned +19.78%. Year to date, PRFD is up 0.42% versus a gain of 15.21% for QQQ.
Over three years, PRFD compounded at +8.35% per year against +24.58% for QQQ. Across the full 4-year window we track, QQQ has the edge at +30.04% annualized vs +5.61%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 6.8% for PRFD. 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 -11.9% for PRFD and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.37. They move together some of the time, and apart the rest.
Fees and Cost Over Time
PRFD charges 0.73% per year while QQQ charges 0.18%. On a $10,000 position that is $73 vs $18 annually, a gap of $55 per year that compounds over a long holding period. On income, PRFD currently yields 5.84% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 133 holdings in PRFD and 102 in QQQ, totalling 61.3% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 133 positions we hold weights for in PRFD and 102 in QQQ, against full books of 242 and 107.
You are not choosing between two funds in isolation.
Whichever of PRFD and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PRFD or QQQ?
PRFD has an expense ratio of 0.73% while QQQ charges 0.18%. QQQ is the cheaper option, by $55 a year on a $10,000 investment.
Which performed better, PRFD or QQQ?
Over the past year PRFD returned +1.88% vs +19.78% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), PRFD annualized +5.61% vs +30.04% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PRFD or QQQ?
QQQ has been the more volatile fund at 17.2% annualized versus 6.8% for PRFD. Worst drawdown: PRFD -11.9% vs QQQ -22.8%.
Should I hold both PRFD and QQQ?
PRFD and QQQ have a monthly-return correlation of 0.37, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, PRFD or QQQ?
PRFD yields 5.84% while QQQ yields 0.44%, so PRFD currently pays the higher dividend yield.
Is QQQ better than PRFD?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.