PSEP vs QQQ
PSEP vs QQQ
Innovator U.S. Equity Power Buffer ETF - September 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 103 holdings.
Side-by-Side Comparison
| Metric | PSEP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.18% | |
| AUM | $843M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 6 | 108 | |
| YTD Return | +6.68% | +18.20% | |
| 1Y Return | +12.16% | +27.63% | |
| 3Y Return (annualized) | +12.10% | +25.54% | |
| 5Y Return (annualized) | +9.54% | +15.12% | |
| Volatility (annualized) | 8.4% | 30.6% | |
| Max Drawdown | -17.9% | -83.0% | |
| Fund Family | Innovator ETFs Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 30, 2019 | Mar 10, 1999 |
PSEP vs QQQ Performance
Innovator U.S. Equity Power Buffer ETF - September (PSEP) is a ETF from Innovator ETFs Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSEP returned +12.16% while QQQ returned +27.63%. Year to date, PSEP is up 6.68% versus a gain of 18.20% for QQQ.
Over three years, PSEP compounded at +12.10% per year against +25.54% for QQQ; over five years the annualized figures are +9.54% and +15.12% respectively. Across the full 7-year window we track, QQQ has the edge at +13.11% annualized vs +9.68%. 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 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 -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 0.85. 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 0.41% for QQQ.
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. On a $10,000 investment, that is $61 per year of difference.
Which performed better, PSEP or QQQ?
Over the past year PSEP returned +12.16% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), PSEP annualized +9.68% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSEP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.4% for PSEP. Worst drawdown: PSEP -17.9% vs QQQ -83.0%.
Should I hold both PSEP and QQQ?
PSEP and QQQ have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, PSEP or QQQ?
PSEP yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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