PSI vs QQQ
Invesco Semiconductors ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. PSI delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PSI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.18% | |
| AUM | $2.7B | $496.3B | |
| Dividend Yield | 0.04% | 0.44% | |
| Holdings | 32 | 108 | |
| YTD Return | +68.36% | +17.07% | |
| 1Y Return | +131.01% | +26.39% | |
| 3Y Return (annualized) | +46.80% | +26.08% | |
| 5Y Return (annualized) | +28.18% | +15.18% | |
| Volatility (annualized) | 28.8% | 30.6% | |
| Max Drawdown | -99.6% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Mar 10, 1999 |
PSI vs QQQ Performance
Invesco Semiconductors ETF (PSI) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSI returned +131.01% while QQQ returned +26.39%. Year to date, PSI is up 68.36% versus a gain of 17.07% for QQQ.
Over three years, PSI compounded at +46.80% per year against +26.08% for QQQ; over five years the annualized figures are +28.18% and +15.18% respectively. Across the full 21-year window we track, PSI has the edge at +17.13% annualized vs +13.05%. 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 28.8% for PSI. 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 -99.6% for PSI 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSI charges 0.56% per year while QQQ charges 0.18%. On a $10,000 position that is $56 vs $18 annually, a gap of $38 per year that compounds over a long holding period. On income, PSI currently yields 0.04% against 0.44% for QQQ.
Holdings Overlap
PSI and QQQ share 9 holdings out of 124 unique holdings combined, representing a 16.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PSI or QQQ?
PSI has an expense ratio of 0.56% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, PSI or QQQ?
Over the past year PSI returned +131.01% vs +26.39% for QQQ, so PSI leads on 1-year performance. Over the longest common window we track (21 years), PSI annualized +17.13% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 28.8% for PSI. Worst drawdown: PSI -99.6% vs QQQ -83.0%.
Should I hold both PSI and QQQ?
PSI and QQQ have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSI and QQQ?
PSI and QQQ share 9 common holdings with a 16.8% weight overlap. Combined, they hold 124 unique securities.
Which pays a higher dividend, PSI or QQQ?
PSI yields 0.04% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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