PTY vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricPTYQQQWinner
Expense Ratio3.70%0.18%
AUM$2.5B$455.8B
Dividend Yield12.40%0.41%
Holdings809108
YTD Return-1.75%+18.31%
1Y Return-5.77%+25.37%
3Y Return (annualized)+3.42%+25.79%
5Y Return (annualized)-1.65%+15.20%
Volatility (annualized)21.1%30.6%
Max Drawdown-69.7%-83.0%
Fund FamilyPIMCO (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionDec 27, 2002Mar 10, 1999

PTY vs QQQ Performance

PIMCO Corporate & Income Opportunity Fund (PTY) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PTY returned -5.77% while QQQ returned +25.37%. Year to date, PTY is down 1.75% versus a gain of 18.31% for QQQ.

Over three years, PTY compounded at +3.42% per year against +25.79% for QQQ; over five years the annualized figures are -1.65% and +15.20% respectively. Across the full 24-year window we track, QQQ has the edge at +13.10% annualized vs +1.38%. 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 21.1% for PTY. 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 -69.7% for PTY 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PTY charges 3.70% per year while QQQ charges 0.18%. On a $10,000 position that is $370 vs $18 annually, a gap of $352 per year that compounds over a long holding period. On income, PTY currently yields 12.40% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

PTY and QQQ share 0 holdings out of 126 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, PTY or QQQ?

PTY has an expense ratio of 3.70% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $352 per year of difference.

Which performed better, PTY or QQQ?

Over the past year PTY returned -5.77% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), PTY annualized +1.38% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, PTY or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 21.1% for PTY. Worst drawdown: PTY -69.7% vs QQQ -83.0%.

Should I hold both PTY and QQQ?

PTY and QQQ have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PTY and QQQ?

PTY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 126 unique securities.

Which pays a higher dividend, PTY or QQQ?

PTY yields 12.40% while QQQ yields 0.41%, so PTY currently pays the higher dividend yield.

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