PRFZ vs QQQ
Invesco RAFI US 1500 Small-Mid ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. PRFZ delivered stronger 1-year returns. PRFZ offers more diversification with 1314 holdings.
Side-by-Side Comparison
| Metric | PRFZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.18% | |
| AUM | $2.8B | $455.8B | |
| Dividend Yield | 0.77% | 0.41% | |
| Holdings | 1,554 | 108 | |
| YTD Return | +23.36% | +19.68% | |
| 1Y Return | +31.01% | +26.75% | |
| 3Y Return (annualized) | +18.46% | +26.25% | |
| 5Y Return (annualized) | +10.38% | +15.39% | |
| Volatility (annualized) | 21.3% | 30.6% | |
| Max Drawdown | -63.0% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2006 | Mar 10, 1999 |
PRFZ vs QQQ Performance
Invesco RAFI US 1500 Small-Mid ETF (PRFZ) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PRFZ returned +31.01% while QQQ returned +26.75%. Year to date, PRFZ is up 23.36% versus a gain of 19.68% for QQQ.
Over three years, PRFZ compounded at +18.46% per year against +26.25% for QQQ; over five years the annualized figures are +10.38% and +15.39% respectively. Across the full 20-year window we track, QQQ has the edge at +13.15% annualized vs +9.42%. 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 21.3% for PRFZ. 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 -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 0.77. 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 0.77% against 0.41% for QQQ.
Holdings Overlap
PRFZ and QQQ share 6 holdings out of 1411 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $16 per year of difference.
Which performed better, PRFZ or QQQ?
Over the past year PRFZ returned +31.01% vs +26.75% for QQQ, so PRFZ leads on 1-year performance. Over the longest common window we track (20 years), PRFZ annualized +9.42% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, PRFZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.3% for PRFZ. Worst drawdown: PRFZ -63.0% vs QQQ -83.0%.
Should I hold both PRFZ and QQQ?
PRFZ and QQQ have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PRFZ and QQQ?
PRFZ and QQQ share 6 common holdings with a 0.5% weight overlap. Combined, they hold 1411 unique securities.
Which pays a higher dividend, PRFZ or QQQ?
PRFZ yields 0.77% while QQQ yields 0.41%, so PRFZ currently pays the higher dividend yield.
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