PSFO vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricPSFOQQQWinner
Expense Ratio0.49%0.18%
AUM$38M$455.8B
Dividend Yield0.00%0.41%
Holdings7108
YTD Return+9.21%+18.31%
1Y Return+14.21%+25.37%
3Y Return (annualized)+12.64%+25.79%
5Y Return (annualized)-+15.20%
Volatility (annualized)8.5%30.6%
Max Drawdown-12.1%-83.0%
Fund FamilyPacer ETFsInvesco (US)
CategoryAlternativeEquity
InceptionSep 30, 2021Mar 10, 1999

PSFO vs QQQ Performance

Pacer Swan SOS Flex October ETF (PSFO) is a ETF from Pacer ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSFO returned +14.21% while QQQ returned +25.37%. Year to date, PSFO is up 9.21% versus a gain of 18.31% for QQQ.

Over three years, PSFO compounded at +12.64% per year against +25.79% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.10% annualized vs +11.70%. 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 8.5% for PSFO. 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 -12.1% for PSFO 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

PSFO charges 0.49% per year while QQQ charges 0.18%. On a $10,000 position that is $49 vs $18 annually, a gap of $31 per year that compounds over a long holding period. On income, PSFO currently yields 0.00% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

PSFO and QQQ share 0 holdings out of 104 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, PSFO or QQQ?

PSFO has an expense ratio of 0.49% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $31 per year of difference.

Which performed better, PSFO or QQQ?

Over the past year PSFO returned +14.21% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), PSFO annualized +11.70% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, PSFO or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 8.5% for PSFO. Worst drawdown: PSFO -12.1% vs QQQ -83.0%.

Should I hold both PSFO and QQQ?

PSFO and QQQ have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PSFO and QQQ?

PSFO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, PSFO or QQQ?

PSFO yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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