PSET vs QQQ
PSET vs QQQ
Principal Quality ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
PSET has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | PSET | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $28M | $455.8B | |
| Dividend Yield | 0.63% | 0.41% | |
| Holdings | 73 | 108 | |
| YTD Return | +7.34% | +18.20% | |
| 1Y Return | +10.43% | +27.63% | |
| 3Y Return (annualized) | +13.38% | +25.54% | |
| 5Y Return (annualized) | +8.92% | +15.12% | |
| Volatility (annualized) | 15.1% | 30.6% | |
| Max Drawdown | -34.8% | -83.0% | |
| Fund Family | Principal Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 21, 2016 | Mar 10, 1999 |
PSET vs QQQ Performance
Principal Quality ETF (PSET) is a ETF from Principal Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSET returned +10.43% while QQQ returned +27.63%. Year to date, PSET is up 7.34% versus a gain of 18.20% for QQQ.
Over three years, PSET compounded at +13.38% per year against +25.54% for QQQ; over five years the annualized figures are +8.92% and +15.12% respectively. Across the full 10-year window we track, QQQ has the edge at +13.11% annualized vs +12.60%. 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 15.1% 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 -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 0.84. 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 0.63% against 0.41% for QQQ.
Holdings Overlap
PSET and QQQ share 20 holdings out of 156 unique holdings combined, representing a 30.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PSET | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 6.19% | 7.88% | 1.69% |
| AAPL | 6.28% | 7.46% | 1.18% |
| MSFT | 3.38% | 4.65% | 1.27% |
| AMZN | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| AMAT | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| PANW | Pro | Pro | Pro |
See all 10 holdings PSET shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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. On a $10,000 investment, that is $3 per year of difference.
Which performed better, PSET or QQQ?
Over the past year PSET returned +10.43% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), PSET annualized +12.60% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSET or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.1% for PSET. Worst drawdown: PSET -34.8% vs QQQ -83.0%.
Should I hold both PSET and QQQ?
PSET and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSET and QQQ?
PSET and QQQ share 20 common holdings with a 30.6% weight overlap. Combined, they hold 156 unique securities.
Which pays a higher dividend, PSET or QQQ?
PSET yields 0.63% while QQQ yields 0.41%, so PSET currently pays the higher dividend yield.
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