PRFD vs QQQ
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PRFD offers more diversification with 116 holdings.
Side-by-Side Comparison
| Metric | PRFD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.18% | |
| AUM | $235M | $455.8B | |
| Dividend Yield | 5.72% | 0.41% | |
| Holdings | 223 | 108 | |
| YTD Return | +1.07% | +18.20% | |
| 1Y Return | +4.79% | +27.63% | |
| 3Y Return (annualized) | +8.39% | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 6.9% | 30.6% | |
| Max Drawdown | -11.9% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 18, 2023 | Mar 10, 1999 |
PRFD vs QQQ Performance
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund (PRFD) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PRFD returned +4.79% while QQQ returned +27.63%. Year to date, PRFD is up 1.07% versus a gain of 18.20% for QQQ.
Over three years, PRFD compounded at +8.39% per year against +25.54% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.11% annualized vs +5.98%. 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 6.9% 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 -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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
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 5.72% against 0.41% for QQQ.
Holdings Overlap
PRFD and QQQ share 0 holdings out of 219 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, PRFD or QQQ?
PRFD has an expense ratio of 0.73% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $55 per year of difference.
Which performed better, PRFD or QQQ?
Over the past year PRFD returned +4.79% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), PRFD annualized +5.98% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, PRFD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.9% for PRFD. Worst drawdown: PRFD -11.9% vs QQQ -83.0%.
Should I hold both PRFD and QQQ?
PRFD and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PRFD and QQQ?
PRFD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 219 unique securities.
Which pays a higher dividend, PRFD or QQQ?
PRFD yields 5.72% while QQQ yields 0.41%, so PRFD currently pays the higher dividend yield.
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