PRFZ vs QQQ
Invesco RAFI US 1500 Small-Mid ETF vs Invesco QQQ Trust, Series 1
Which is better, PRFZ or QQQ?
Small Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y 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 | PRFZ | QQQ |
|---|---|---|
| Expense Ratio | 0.34% | 0.18%Best |
| AUM | $2.8B | $483.5B |
| Dividend Yield | 0.80% | 0.44% |
| Holdings | 1,522 | 107 |
| YTD Return | +16.60% | +16.87%Best |
| 1Y Return | +18.07% | +22.98%Best |
| 3Y Return (annualized) | +17.65% | +24.98%Best |
| 5Y Return (annualized) | +9.23% | +14.39%Best |
| Volatility (annualized) | 21.3% | 18.6%Best |
| Max Drawdown | -63.0% | -53.5%Best |
| $10,000 over 5 years | $15,549 | $19,586Best |
| Fund Family | Invesco (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Growth |
| Inception | Sep 20, 2006 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2006 to Sep 11, 2026 (20 years).
PRFZ 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 20 years both funds cover.
PRFZ vs QQQ Performance
Invesco RAFI US 1500 Small-Mid ETF (PRFZ) is an ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PRFZ returned +18.07% while QQQ returned +22.98%. Year to date, PRFZ is up 16.60% versus a gain of 16.87% for QQQ.
Over three years, PRFZ compounded at +17.65% per year against +24.98% for QQQ; over five years the annualized figures are +9.23% and +14.39% respectively. Across the full 20-year window we track, QQQ has the edge at +15.65% annualized vs +9.08%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PRFZ has been the more volatile fund, with annualized monthly volatility of 21.3% compared with 18.6% for QQQ. 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 -63.0% for PRFZ and -53.5% 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PRFZ charges 0.34% per year while QQQ charges 0.18%. On a $10,000 position that is $34 vs $18 annually, a gap of $16 per year that compounds over a long holding period. On income, PRFZ currently yields 0.80% against 0.44% for QQQ.
Holdings Overlap
At least 1.4% of QQQ's money is in holdings PRFZ also owns.
Stated as a floor: for PRFZ, our book for it covers 94.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
QQQ and PRFZ share little of their money.
5 positions in common, counted across the 1,301 positions we hold weights for in PRFZ and 102 in QQQ, against full books of 1,522 and 107.
You are not choosing between two funds in isolation.
Whichever of PRFZ 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, PRFZ or QQQ?
PRFZ has an expense ratio of 0.34% while QQQ charges 0.18%. QQQ is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, PRFZ or QQQ?
Over the past year PRFZ returned +18.07% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), PRFZ annualized +9.08% vs +15.65% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PRFZ or QQQ?
PRFZ has been the more volatile fund at 21.3% annualized versus 18.6% for QQQ. Worst drawdown: PRFZ -63.0% vs QQQ -53.5%.
Should I hold both PRFZ and QQQ?
PRFZ and QQQ have a monthly-return correlation of 0.77, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PRFZ and QQQ?
At least 1.4% of QQQ's money is in holdings PRFZ also owns. Our book for PRFZ is partial, so the real figure is this or higher. They hold 5 positions in common, counted across the 1,301 positions we hold weights for in PRFZ and 102 in QQQ.
Which pays a higher dividend, PRFZ or QQQ?
PRFZ yields 0.80% while QQQ yields 0.44%, so PRFZ currently pays the higher dividend yield.
Is QQQ better than PRFZ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.