PSET vs QQQ
Principal Quality ETF vs Invesco QQQ Trust, Series 1
Which is better, PSET or QQQ?
Large Cap Blend against Large Cap Growth.
PSET has a lower expense ratio. QQQ led over 1Y and the full window. PSET is less concentrated, with 34.2% of the fund in its ten largest positions against 46.9%.
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 | PSET | QQQ |
|---|---|---|
| Expense Ratio | 0.15%Best | 0.18% |
| AUM | $26M | $437.3B |
| Dividend Yield | 0.69% | 0.43% |
| Holdings | 150 | 208 |
| Volatility (annualized) | 15.0%Best | 18.8% |
| Max Drawdown | -34.8%Best | -35.1% |
| $10,000 over 10.6 years | $33,783 | $69,014Best |
| Top 10 Weight | 34.2%Best | 46.9% |
| Fund Family | Principal Funds | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Mar 21, 2016 | Mar 10, 1999 |
Not shown on this pair: YTD Return, 1Y Return, 3Y Return (annualized), 5Y Return (annualized).
The two price series end 18 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. PSET has data through Oct 19, 2026 and QQQ through Nov 6, 2026.
Volatility and max drawdown, and the $10,000 over 10.6 years row, are measured over the window both funds cover: Mar 22, 2016 to Oct 19, 2026 (10.6 years).
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 15.0% for PSET. 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 -34.8% for PSET 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSET charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, PSET currently yields 0.69% against 0.43% for QQQ.
Holdings Overlap
41.1% of PSET's money is in holdings QQQ also owns. 46.6% of QQQ's money is in holdings PSET also owns.
The two portfolios partly overlap.
20 positions in common, counted across the 73 positions we hold weights for in PSET and 101 in QQQ, against full books of 150 and 208.
What only one of them owns
Our book lists 74 positions for QQQ that do not appear in our book for PSET (50.6% of the fund), and 51 for PSET that do not appear in QQQ (56.8%).
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 PSET | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 7.13% | 8.05% | 0.92% |
| AAPLApple Inc | 6.11% | 7.68% | 1.57% |
| MSFTMicrosoft Corp | 4.38% | 6.16% | 1.78% |
| AMZNAmazon.Com Inc | 2.27% | 4.23% | 1.96% |
| GOOGAlphabet Inc. C | 2.88% | 2.93% | 0.05% |
| GOOGLAlphabet Inc | 1.28% | 3.15% | 1.87% |
| METAMeta Platforms Inc | 0.97% | 3.37% | 2.40% |
| PANWPalo Alto Networks Inc. | 2.98% | 1.28% | 1.70% |
| AMATApplied Material | 2.27% | 1.45% | 0.82% |
| AVGOBroadcom Inc | 1.19% | 2.52% | 1.33% |
46.6% of QQQ is already inside PSET.
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, PSET or QQQ?
PSET has an expense ratio of 0.15% while QQQ charges 0.18%. PSET is the cheaper option, by $3 a year on a $10,000 investment.
Which is riskier, PSET or QQQ?
QQQ has been the more volatile fund at 18.8% annualized versus 15.0% for PSET. Worst drawdown: PSET -34.8% vs QQQ -35.1%.
Should I hold both PSET and QQQ?
PSET and QQQ have a monthly-return correlation of 0.83, 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 PSET and QQQ?
46.6% of QQQ's money is in holdings PSET also owns. 46.6% of QQQ's is in holdings PSET also owns. They hold 20 positions in common, counted across the 73 positions we hold weights for in PSET and 101 in QQQ.
Which pays a higher dividend, PSET or QQQ?
PSET yields 0.69% while QQQ yields 0.43%, so PSET currently pays the higher dividend yield.
Is QQQ better than PSET?
PSET has a lower expense ratio. QQQ led over 1Y and the full window. PSET is less concentrated, with 34.2% of the fund in its ten largest positions against 46.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.