PSTP vs QQQ

PSTP vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricPSTPQQQWinner
Expense Ratio0.89%0.18%
AUM$133M$496.3B
Dividend Yield0.00%0.44%
Holdings6108
YTD Return+5.80%+16.64%
1Y Return+10.08%+27.27%
3Y Return (annualized)+11.58%+25.96%
5Y Return (annualized)-+14.54%
Volatility (annualized)8.3%30.6%
Max Drawdown-12.5%-83.0%
Fund FamilyInnovator ETFs TrustInvesco (US)
CategoryAlternativeEquity
InceptionMar 7, 2022Mar 10, 1999

PSTP vs QQQ Performance

Innovator Power Buffer Step Up Strategy ETF (PSTP) is a ETF from Innovator ETFs Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSTP returned +10.08% while QQQ returned +27.27%. Year to date, PSTP is up 5.80% versus a gain of 16.64% for QQQ.

Over three years, PSTP compounded at +11.58% per year against +25.96% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs +8.96%. 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 8.3% for PSTP. 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 -12.5% for PSTP 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

PSTP charges 0.89% per year while QQQ charges 0.18%. On a $10,000 position that is $89 vs $18 annually, a gap of $71 per year that compounds over a long holding period. On income, PSTP currently yields 0.00% against 0.44% for QQQ.

Frequently Asked Questions

Which is cheaper, PSTP or QQQ?

PSTP has an expense ratio of 0.89% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $71 per year of difference.

Which performed better, PSTP or QQQ?

Over the past year PSTP returned +10.08% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), PSTP annualized +8.96% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, PSTP or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 8.3% for PSTP. Worst drawdown: PSTP -12.5% vs QQQ -83.0%.

Should I hold both PSTP and QQQ?

PSTP and QQQ have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

Which pays a higher dividend, PSTP or QQQ?

PSTP yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.

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