PVAL vs QQQ
Putnam Focused Large Cap Value ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. PVAL delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PVAL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.18% | |
| AUM | $14.0B | $496.3B | |
| Dividend Yield | 0.90% | 0.44% | |
| Holdings | 48 | 108 | |
| YTD Return | +17.84% | +16.23% | |
| 1Y Return | +31.58% | +26.23% | |
| 3Y Return (annualized) | +23.99% | +25.75% | |
| 5Y Return (annualized) | +17.15% | +14.78% | |
| Volatility (annualized) | 14.7% | 30.6% | |
| Max Drawdown | -16.6% | -83.0% | |
| Fund Family | Putnam Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 25, 2021 | Mar 10, 1999 |
PVAL vs QQQ Performance
Putnam Focused Large Cap Value ETF (PVAL) is a ETF from Putnam Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PVAL returned +31.58% while QQQ returned +26.23%. Year to date, PVAL is up 17.84% versus a gain of 16.23% for QQQ.
Over three years, PVAL compounded at +23.99% per year against +25.75% for QQQ; over five years the annualized figures are +17.15% and +14.78% respectively. Across the full 5-year window we track, PVAL has the edge at +16.89% annualized vs +13.02%. 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 14.7% for PVAL. 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 -16.6% for PVAL 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PVAL charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, PVAL currently yields 0.90% against 0.44% for QQQ.
Holdings Overlap
PVAL and QQQ share 11 holdings out of 138 unique holdings combined, representing a 24.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PVAL or QQQ?
PVAL has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, PVAL or QQQ?
Over the past year PVAL returned +31.58% vs +26.23% for QQQ, so PVAL leads on 1-year performance. Over the longest common window we track (5 years), PVAL annualized +16.89% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, PVAL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.7% for PVAL. Worst drawdown: PVAL -16.6% vs QQQ -83.0%.
Should I hold both PVAL and QQQ?
PVAL and QQQ have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PVAL and QQQ?
PVAL and QQQ share 11 common holdings with a 24.7% weight overlap. Combined, they hold 138 unique securities.
Which pays a higher dividend, PVAL or QQQ?
PVAL yields 0.90% while QQQ yields 0.44%, so PVAL currently pays the higher dividend yield.
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