PSC vs QQQ
Principal U.S. Small-Cap Multi-Factor ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. PSC delivered stronger 1-year returns. PSC offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | PSC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $2.2B | $455.8B | |
| Dividend Yield | 0.55% | 0.41% | |
| Holdings | 513 | 108 | |
| YTD Return | +20.69% | +18.20% | |
| 1Y Return | +33.12% | +27.63% | |
| 3Y Return (annualized) | +17.87% | +25.54% | |
| 5Y Return (annualized) | +9.84% | +15.12% | |
| Volatility (annualized) | 20.9% | 30.6% | |
| Max Drawdown | -47.9% | -83.0% | |
| Fund Family | Principal Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 21, 2016 | Mar 10, 1999 |
PSC vs QQQ Performance
Principal U.S. Small-Cap Multi-Factor ETF (PSC) is a ETF from Principal Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSC returned +33.12% while QQQ returned +27.63%. Year to date, PSC is up 20.69% versus a gain of 18.20% for QQQ.
Over three years, PSC compounded at +17.87% per year against +25.54% for QQQ; over five years the annualized figures are +9.84% and +15.12% respectively. Across the full 10-year window we track, QQQ has the edge at +13.11% annualized vs +11.49%. 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 20.9% for PSC. 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 -47.9% for PSC 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSC charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, PSC currently yields 0.55% against 0.41% for QQQ.
Holdings Overlap
PSC and QQQ share 0 holdings out of 612 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, PSC or QQQ?
PSC has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, PSC or QQQ?
Over the past year PSC returned +33.12% vs +27.63% for QQQ, so PSC leads on 1-year performance. Over the longest common window we track (10 years), PSC annualized +11.49% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.9% for PSC. Worst drawdown: PSC -47.9% vs QQQ -83.0%.
Should I hold both PSC and QQQ?
PSC and QQQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSC and QQQ?
PSC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 612 unique securities.
Which pays a higher dividend, PSC or QQQ?
PSC yields 0.55% while QQQ yields 0.41%, so PSC currently pays the higher dividend yield.
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