PSMO vs QQQ
Pacer Swan SOS Moderate October 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 103 holdings.
Side-by-Side Comparison
| Metric | PSMO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.18% | |
| AUM | $99M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 6 | 108 | |
| YTD Return | +7.64% | +17.85% | |
| 1Y Return | +12.48% | +26.45% | |
| 3Y Return (annualized) | +12.19% | +26.07% | |
| 5Y Return (annualized) | - | +15.16% | |
| Volatility (annualized) | 6.8% | 30.6% | |
| Max Drawdown | -9.8% | -83.0% | |
| Fund Family | Pacer ETFs | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 30, 2021 | Mar 10, 1999 |
PSMO vs QQQ Performance
Pacer Swan SOS Moderate October ETF (PSMO) is a ETF from Pacer ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSMO returned +12.48% while QQQ returned +26.45%. Year to date, PSMO is up 7.64% versus a gain of 17.85% for QQQ.
Over three years, PSMO compounded at +12.19% per year against +26.07% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.09% annualized vs +10.26%. 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 6.8% for PSMO. 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 -9.8% for PSMO 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSMO 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, PSMO currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
PSMO 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, PSMO or QQQ?
PSMO 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, PSMO or QQQ?
Over the past year PSMO returned +12.48% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), PSMO annualized +10.26% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSMO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.8% for PSMO. Worst drawdown: PSMO -9.8% vs QQQ -83.0%.
Should I hold both PSMO and QQQ?
PSMO and QQQ have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSMO and QQQ?
PSMO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, PSMO or QQQ?
PSMO yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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