PSC vs QQQ
Principal U.S. Small-Cap Multi-Factor ETF vs Invesco QQQ Trust, Series 1
Which is better, PSC 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. PSC is less concentrated, with 8.0% of the fund in its ten largest positions against 46.5%.
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 | PSC | QQQ |
|---|---|---|
| Expense Ratio | 0.38% | 0.18%Best |
| AUM | $2.8B | $486.1B |
| Dividend Yield | 0.53% | 0.44% |
| Holdings | 495 | 107 |
| YTD Return | +19.53%Best | +17.54% |
| 1Y Return | +24.09% | +25.59%Best |
| 3Y Return (annualized) | +18.59% | +24.63%Best |
| 5Y Return (annualized) | +9.57% | +14.18%Best |
| Volatility (annualized) | 20.8% | 19.0%Best |
| Max Drawdown | -47.9% | -35.1%Best |
| $10,000 over 5 years | $15,793 | $19,407Best |
| Top 10 Weight | 8.0%Best | 46.5% |
| Fund Family | Principal Funds | Invesco (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Growth |
| Inception | Sep 21, 2016 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2016 to Sep 4, 2026 (9.9 years).
PSC 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 9.9 years both funds cover.
PSC vs QQQ Performance
Principal U.S. Small-Cap Multi-Factor ETF (PSC) is an ETF from Principal Funds and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PSC returned +24.09% while QQQ returned +25.59%. Year to date, PSC is up 19.53% versus a gain of 17.54% for QQQ.
Over three years, PSC compounded at +18.59% per year against +24.63% for QQQ; over five years the annualized figures are +9.57% and +14.18% respectively. Across the full 10-year window we track, QQQ has the edge at +20.20% annualized vs +11.29%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PSC has been the more volatile fund, with annualized monthly volatility of 20.8% compared with 19.0% 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 -47.9% for PSC and -35.1% 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 0.70. 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 0.53% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 490 holdings in PSC and 102 in QQQ, totalling 100.0% 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 490 positions we hold weights for in PSC and 102 in QQQ, against full books of 495 and 107.
What only one of them owns
Our book lists 94 positions for QQQ that do not appear in our book for PSC (96.8% of the fund), and 466 for PSC that do not appear in QQQ (94.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of PSC 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, PSC or QQQ?
PSC has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option, by $20 a year on a $10,000 investment.
Which performed better, PSC or QQQ?
Over the past year PSC returned +24.09% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), PSC annualized +11.29% vs +20.20% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PSC or QQQ?
PSC has been the more volatile fund at 20.8% annualized versus 19.0% for QQQ. Worst drawdown: PSC -47.9% vs QQQ -35.1%.
Should I hold both PSC and QQQ?
PSC and QQQ have a monthly-return correlation of 0.70, 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, PSC or QQQ?
PSC yields 0.53% while QQQ yields 0.44%, so PSC currently pays the higher dividend yield.
Is QQQ better than PSC?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. PSC is less concentrated, with 8.0% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.