PSQO vs QQQ
Palmer Square Credit Opportunities ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PSQO offers more diversification with 359 holdings.
Side-by-Side Comparison
| Metric | PSQO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.52% | 0.18% | |
| AUM | $283M | $496.3B | |
| Dividend Yield | 4.53% | 0.44% | |
| Holdings | 359 | 108 | |
| YTD Return | +2.81% | +16.64% | |
| 1Y Return | +5.34% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 1.1% | 30.6% | |
| Max Drawdown | -0.8% | -83.0% | |
| Fund Family | Palmer Square Capital Management | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 11, 2024 | Mar 10, 1999 |
PSQO vs QQQ Performance
Palmer Square Credit Opportunities ETF (PSQO) is a ETF from Palmer Square Capital Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSQO returned +5.34% while QQQ returned +27.27%. Year to date, PSQO is up 2.81% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 1.1% for PSQO. 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 -0.8% for PSQO 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSQO charges 0.52% per year while QQQ charges 0.18%. On a $10,000 position that is $52 vs $18 annually, a gap of $34 per year that compounds over a long holding period. On income, PSQO currently yields 4.53% against 0.44% for QQQ.
Holdings Overlap
PSQO and QQQ share 1 holdings out of 255 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PSQO | Weight in QQQ | Difference |
|---|---|---|---|
| KDP | 0.17% | 0.18% | 0.01% |
Frequently Asked Questions
Which is cheaper, PSQO or QQQ?
PSQO has an expense ratio of 0.52% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, PSQO or QQQ?
Over the past year PSQO returned +5.34% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), PSQO annualized +6.13% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSQO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 1.1% for PSQO. Worst drawdown: PSQO -0.8% vs QQQ -83.0%.
Should I hold both PSQO and QQQ?
PSQO and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSQO and QQQ?
PSQO and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 255 unique securities.
Which pays a higher dividend, PSQO or QQQ?
PSQO yields 4.53% while QQQ yields 0.44%, so PSQO currently pays the higher dividend yield.
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