PSL 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

MetricPSLQQQWinner
Expense Ratio0.60%0.18%
AUM$84M$455.8B
Dividend Yield0.75%0.41%
Holdings50108
YTD Return+14.31%+18.31%
1Y Return+3.08%+25.37%
3Y Return (annualized)+10.17%+25.79%
5Y Return (annualized)+5.69%+15.20%
Volatility (annualized)13.9%30.6%
Max Drawdown-42.0%-83.0%
Fund FamilyInvesco (US)Invesco (US)
CategoryEquityEquity
InceptionOct 12, 2006Mar 10, 1999

PSL vs QQQ Performance

Invesco Dorsey Wright Consumer Staples Momentum ETF (PSL) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSL returned +3.08% while QQQ returned +25.37%. Year to date, PSL is up 14.31% versus a gain of 18.31% for QQQ.

Over three years, PSL compounded at +10.17% per year against +25.79% for QQQ; over five years the annualized figures are +5.69% and +15.20% respectively. Across the full 20-year window we track, QQQ has the edge at +13.10% annualized vs +8.27%. 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 13.9% for PSL. 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 -42.0% for PSL 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PSL charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, PSL currently yields 0.75% against 0.41% for QQQ.

Holdings Overlap

2.2%overlap

PSL and QQQ share 2 holdings out of 149 unique holdings combined, representing a 2.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PSLWeight in QQQDifference
COST4.99%1.82%3.17%
MNST3.95%0.42%3.53%

Frequently Asked Questions

Which is cheaper, PSL or QQQ?

PSL has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.

Which performed better, PSL or QQQ?

Over the past year PSL returned +3.08% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), PSL annualized +8.27% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, PSL or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 13.9% for PSL. Worst drawdown: PSL -42.0% vs QQQ -83.0%.

Should I hold both PSL and QQQ?

PSL and QQQ have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PSL and QQQ?

PSL and QQQ share 2 common holdings with a 2.2% weight overlap. Combined, they hold 149 unique securities.

Which pays a higher dividend, PSL or QQQ?

PSL yields 0.75% while QQQ yields 0.41%, so PSL currently pays the higher dividend yield.

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