PSWD vs QQQ

PSWD vs QQQ

Which is better, PSWD or QQQ?

Large Cap Blend against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 48.2%.

Lower Fees: QQQHigher Returns: QQQLess Concentrated: 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

MetricPSWDQQQ
Expense Ratio0.20%0.18%Best
AUM$5M$483.5B
Dividend Yield0.56%0.44%
Holdings53107
YTD Return+33.51%Best+16.87%
1Y Return+19.62%+22.98%Best
3Y Return (annualized)-+24.98%
5Y Return (annualized)-+14.39%
Volatility (annualized)21.7%17.4%Best
Max Drawdown-23.7%-22.8%Best
$10,000 over 2.6 years$14,146$16,795Best
Top 10 Weight48.2%46.5%Best
Fund FamilyXtrackers ETFsInvesco (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Growth
InceptionJul 13, 2023Mar 10, 1999

Volatility and max drawdown, and the $10,000 over 2.6 years row, are measured over the window both funds cover: Feb 7, 2024 to Sep 11, 2026 (2.6 years).

PSWD 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 2.6 years both funds cover.

PSWD vs QQQ Performance

Xtrackers Cybersecurity Select Equity ETF (PSWD) is an ETF from Xtrackers ETFs and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PSWD returned +19.62% while QQQ returned +22.98%. Year to date, PSWD is up 33.51% versus a gain of 16.87% for QQQ.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PSWD has been the more volatile fund, with annualized monthly volatility of 21.7% compared with 17.4% for QQQ. 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 -23.7% for PSWD 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 0.61. They move together some of the time, and apart the rest.

Fees and Cost Over Time

PSWD charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, PSWD currently yields 0.56% against 0.44% for QQQ.

Holdings Overlap

PSWD already in QQQ18.1%
QQQ already in PSWD3.0%

18.1% of PSWD's money is in holdings QQQ also owns. 3.0% of QQQ's money is in holdings PSWD also owns.

PSWD and QQQ share little of their money.

4 positions in common, counted across the 53 positions we hold weights for in PSWD and 102 in QQQ, against full books of 53 and 107.

What only one of them owns

Our book lists 91 positions for QQQ that do not appear in our book for PSWD (94.1% of the fund), and 25 for PSWD that do not appear in QQQ (54.1%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in PSWDWeight in QQQDifference
PANWPalo Alto Networks Inc.4.79%1.30%3.49%
CRWDCrowdstrike Holdings Inc. Class A4.55%0.94%3.61%
CRWVCoreweave4.69%0.18%4.51%
FTNTFortinet Inc.4.09%0.53%3.56%

You are not choosing between two funds in isolation.

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

PSWDQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, PSWD or QQQ?

PSWD has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option, by $2 a year on a $10,000 investment.

Which performed better, PSWD or QQQ?

Over the past year PSWD returned +19.62% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PSWD or QQQ?

PSWD has been the more volatile fund at 21.7% annualized versus 17.4% for QQQ. Worst drawdown: PSWD -23.7% vs QQQ -22.8%.

Should I hold both PSWD and QQQ?

PSWD and QQQ have a monthly-return correlation of 0.61, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between PSWD and QQQ?

18.1% of PSWD's money is in holdings QQQ also owns. 3.0% of QQQ's is in holdings PSWD also owns. They hold 4 positions in common, counted across the 53 positions we hold weights for in PSWD and 102 in QQQ.

Which pays a higher dividend, PSWD or QQQ?

PSWD yields 0.56% while QQQ yields 0.44%, so PSWD currently pays the higher dividend yield.

Is QQQ better than PSWD?

QQQ has a lower expense ratio. QQQ led over 1Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 48.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.