PSQO vs QQQ

PSQO vs QQQ

Which is better, PSQO or QQQ?

Investment Grade Bond against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y and the full window.

Lower Fees: QQQHigher Returns: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricPSQOQQQ
Expense Ratio0.52%0.18%Best
AUM$294M$483.5B
Dividend Yield4.50%0.44%
Holdings448107
YTD Return+2.96%+15.94%Best
1Y Return+4.93%+20.44%Best
3Y Return (annualized)-+24.86%
5Y Return (annualized)-+14.26%
Volatility (annualized)1.2%Best18.6%
Max Drawdown-0.8%Best-22.8%
$10,000 over 2 years$11,236$15,131Best
Fund FamilyPalmer Square Capital ManagementInvesco (US)
CategoryFixed IncomeEquity
StyleInvestment Grade BondLarge Cap Growth
InceptionSep 11, 2024Mar 10, 1999

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 2 years row, are measured over the window both funds cover: Sep 12, 2024 to Sep 14, 2026 (2 years).

PSQO vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2 years both funds cover.

PSQO vs QQQ Performance

Palmer Square Credit Opportunities ETF (PSQO) is an ETF from Palmer Square Capital Management and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PSQO returned +4.93% while QQQ returned +20.44%. Year to date, PSQO is up 2.96% versus a gain of 15.94% for QQQ.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 18.6% compared with 1.2% 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 -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.62. They move together some of the time, and apart the rest.

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 4.50% against 0.44% for QQQ.

Holdings Overlap

QQQ already in PSQO0.2%

At least 0.2% of QQQ's money is in holdings PSQO also owns.

Stated as a floor: for PSQO, our book for it covers 29.4% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 154 positions we hold weights for in PSQO and 102 in QQQ, against full books of 448 and 107.

Top Shared Holdings

StockWeight in PSQOWeight in QQQDifference
KDPKeurig Dr Pepper Inc (kdp Us)0.17%0.18%0.01%

You are not choosing between two funds in isolation.

Whichever of PSQO and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

PSQOQQQ

Free for up to 10 holdings. No account needed.

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, by $34 a year on a $10,000 investment.

Which performed better, PSQO or QQQ?

Over the past year PSQO returned +4.93% vs +20.44% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), PSQO annualized +6.00% vs +23.01% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PSQO or QQQ?

QQQ has been the more volatile fund at 18.6% annualized versus 1.2% for PSQO. Worst drawdown: PSQO -0.8% vs QQQ -22.8%.

Should I hold both PSQO and QQQ?

PSQO and QQQ have a monthly-return correlation of 0.62, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, PSQO or QQQ?

PSQO yields 4.50% while QQQ yields 0.44%, so PSQO currently pays the higher dividend yield.

Is QQQ better than PSQO?

QQQ has a lower expense ratio. QQQ led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.