PSCI vs QQQ
Invesco S&P SmallCap Industrials ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PSCI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $193M | $496.3B | |
| Dividend Yield | 1.21% | 0.44% | |
| Holdings | 90 | 108 | |
| YTD Return | +15.95% | +16.23% | |
| 1Y Return | +23.84% | +26.23% | |
| 3Y Return (annualized) | +21.33% | +25.75% | |
| 5Y Return (annualized) | +14.95% | +14.78% | |
| Volatility (annualized) | 21.6% | 30.6% | |
| Max Drawdown | -46.3% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2010 | Mar 10, 1999 |
PSCI vs QQQ Performance
Invesco S&P SmallCap Industrials ETF (PSCI) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSCI returned +23.84% while QQQ returned +26.23%. Year to date, PSCI is up 15.95% versus a gain of 16.23% for QQQ.
Over three years, PSCI compounded at +21.33% per year against +25.75% for QQQ; over five years the annualized figures are +14.95% and +14.78% respectively. Across the full 16-year window we track, QQQ has the edge at +13.02% annualized vs +12.90%. 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 21.6% for PSCI. 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 -46.3% for PSCI 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
PSCI charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, PSCI currently yields 1.21% against 0.44% for QQQ.
Holdings Overlap
PSCI and QQQ share 0 holdings out of 190 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, PSCI or QQQ?
PSCI has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, PSCI or QQQ?
Over the past year PSCI returned +23.84% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), PSCI annualized +12.90% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSCI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.6% for PSCI. Worst drawdown: PSCI -46.3% vs QQQ -83.0%.
Should I hold both PSCI and QQQ?
PSCI 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 PSCI and QQQ?
PSCI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 190 unique securities.
Which pays a higher dividend, PSCI or QQQ?
PSCI yields 1.21% while QQQ yields 0.44%, so PSCI currently pays the higher dividend yield.
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