PSEP vs QQQ
Innovator U.S. Equity Power Buffer ETF - September vs Invesco QQQ Trust, Series 1
Which is better, PSEP or QQQ?
Option Writing against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. PSEP is less concentrated, with 37.8% 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 | PSEP | QQQ |
|---|---|---|
| Expense Ratio | 0.79% | 0.18%Best |
| AUM | $815M | $483.5B |
| Dividend Yield | 0.00% | 0.44% |
| Holdings | 12 | 107 |
| YTD Return | +6.33% | +15.21%Best |
| 1Y Return | +9.03% | +19.78%Best |
| 3Y Return (annualized) | +12.00% | +24.58%Best |
| 5Y Return (annualized) | +9.52% | +13.93%Best |
| Volatility (annualized) | 8.4%Best | 20.6% |
| Max Drawdown | -17.9%Best | -35.1% |
| $10,000 over 5 years | $15,757 | $19,195Best |
| Top 10 Weight | 37.8%Best | 46.5% |
| Fund Family | Innovator ETFs Trust | Invesco (US) |
| Category | Alternative | Equity |
| Style | Option Writing | Large Cap Growth |
| Inception | Aug 30, 2019 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Sep 3, 2019 to Sep 16, 2026 (7 years).
PSEP 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 7 years both funds cover.
PSEP vs QQQ Performance
Innovator U.S. Equity Power Buffer ETF - September (PSEP) is an ETF from Innovator ETFs Trust and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PSEP returned +9.03% while QQQ returned +19.78%. Year to date, PSEP is up 6.33% versus a gain of 15.21% for QQQ.
Over three years, PSEP compounded at +12.00% per year against +24.58% for QQQ; over five years the annualized figures are +9.52% and +13.93% respectively. Across the full 7-year window we track, QQQ has the edge at +21.43% annualized vs +9.47%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.6% compared with 8.4% for PSEP. 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 -17.9% for PSEP 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSEP charges 0.79% per year while QQQ charges 0.18%. On a $10,000 position that is $79 vs $18 annually, a gap of $61 per year that compounds over a long holding period. On income, PSEP currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
53.3% of PSEP's money is in holdings QQQ also owns. 94.2% of QQQ's money is in holdings PSEP also owns.
Most of QQQ is already inside PSEP. Owning both mostly buys the same companies twice.
85 positions in common, counted across the 491 positions we hold weights for in PSEP and 102 in QQQ, against full books of 12 and 107.
What only one of them owns
Our book lists 11 positions for QQQ that do not appear in our book for PSEP (3.4% of the fund), and 402 for PSEP that do not appear in QQQ (44.9%).
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.
Top Shared Holdings
| Stock | Weight in PSEP | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.21% | 8.44% | 0.23% |
| AAPLApple, Inc | 7.15% | 7.27% | 0.12% |
| MSFTMicrosoft Corp | 5.62% | 5.76% | 0.14% |
| AMZNAmazon.Com Inc | 3.76% | 4.67% | 0.91% |
| GOOGLAlphabet Inc,class A | 2.98% | 3.36% | 0.38% |
| MUMicron Technology, Inc. | 1.60% | 4.43% | 2.83% |
| AVGOBroadcom Inc | 2.51% | 3.16% | 0.65% |
| GOOGAlphabet Inc | 2.38% | 3.13% | 0.75% |
| METAMeta Platforms Inc | 1.99% | 2.78% | 0.79% |
| AMDAdvanced Micro Devices Inc | 1.10% | 3.45% | 2.35% |
94.2% of QQQ is already inside PSEP.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PSEP or QQQ?
PSEP has an expense ratio of 0.79% while QQQ charges 0.18%. QQQ is the cheaper option, by $61 a year on a $10,000 investment.
Which performed better, PSEP or QQQ?
Over the past year PSEP returned +9.03% vs +19.78% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), PSEP annualized +9.47% vs +21.43% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PSEP or QQQ?
QQQ has been the more volatile fund at 20.6% annualized versus 8.4% for PSEP. Worst drawdown: PSEP -17.9% vs QQQ -35.1%.
Should I hold both PSEP and QQQ?
PSEP and QQQ have a monthly-return correlation of 0.86, 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 PSEP and QQQ?
94.2% of QQQ's money is in holdings PSEP also owns. 94.2% of QQQ's is in holdings PSEP also owns. They hold 85 positions in common, counted across the 491 positions we hold weights for in PSEP and 102 in QQQ.
Which pays a higher dividend, PSEP or QQQ?
PSEP yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than PSEP?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. PSEP is less concentrated, with 37.8% 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.