PSMD vs QQQ
Pacer Swan SOS Moderate (January) ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PSMD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.18% | |
| AUM | $93M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 6 | 108 | |
| YTD Return | +7.79% | +19.68% | |
| 1Y Return | +12.40% | +26.75% | |
| 3Y Return (annualized) | +12.40% | +26.25% | |
| 5Y Return (annualized) | +9.37% | +15.39% | |
| Volatility (annualized) | 7.5% | 30.6% | |
| Max Drawdown | -12.0% | -83.0% | |
| Fund Family | Pacer ETFs | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Dec 22, 2020 | Mar 10, 1999 |
PSMD vs QQQ Performance
Pacer Swan SOS Moderate (January) ETF (PSMD) is a ETF from Pacer ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSMD returned +12.40% while QQQ returned +26.75%. Year to date, PSMD is up 7.79% versus a gain of 19.68% for QQQ.
Over three years, PSMD compounded at +12.40% per year against +26.25% for QQQ; over five years the annualized figures are +9.37% and +15.39% respectively. Across the full 6-year window we track, QQQ has the edge at +13.15% annualized vs +9.95%. 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 7.5% for PSMD. 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 -12.0% for PSMD 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSMD 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, PSMD currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
PSMD 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, PSMD or QQQ?
PSMD 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, PSMD or QQQ?
Over the past year PSMD returned +12.40% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), PSMD annualized +9.95% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSMD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.5% for PSMD. Worst drawdown: PSMD -12.0% vs QQQ -83.0%.
Should I hold both PSMD and QQQ?
PSMD and QQQ have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSMD and QQQ?
PSMD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, PSMD or QQQ?
PSMD yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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