PYPY vs QQQ
YieldMax PYPL Option Income Strategy ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PYPY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.46% | 0.18% | |
| AUM | $16M | $496.3B | |
| Dividend Yield | 56.79% | 0.44% | |
| Holdings | 8 | 108 | |
| YTD Return | +2.62% | +16.64% | |
| 1Y Return | -11.90% | +27.27% | |
| 3Y Return (annualized) | +3.06% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 31.0% | 30.6% | |
| Max Drawdown | -53.6% | -83.0% | |
| Fund Family | YieldMax ETF | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 25, 2023 | Mar 10, 1999 |
PYPY vs QQQ Performance
YieldMax PYPL Option Income Strategy ETF (PYPY) is a ETF from YieldMax ETF and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PYPY returned -11.90% while QQQ returned +27.27%. Year to date, PYPY is up 2.62% versus a gain of 16.64% for QQQ.
Over three years, PYPY compounded at +3.06% per year against +25.96% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.03% annualized vs +3.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PYPY has been the more volatile fund, with annualized monthly volatility of 31.0% compared with 30.6% 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 -53.6% for PYPY 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 0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PYPY charges 1.46% per year while QQQ charges 0.18%. On a $10,000 position that is $146 vs $18 annually, a gap of $128 per year that compounds over a long holding period. On income, PYPY currently yields 56.79% against 0.44% for QQQ.
Holdings Overlap
PYPY and QQQ share 0 holdings out of 103 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, PYPY or QQQ?
PYPY has an expense ratio of 1.46% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $128 per year of difference.
Which performed better, PYPY or QQQ?
Over the past year PYPY returned -11.90% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), PYPY annualized +3.06% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PYPY or QQQ?
PYPY has been the more volatile fund at 31.0% annualized versus 30.6% for QQQ. Worst drawdown: PYPY -53.6% vs QQQ -83.0%.
Should I hold both PYPY and QQQ?
PYPY and QQQ have a monthly-return correlation of 0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PYPY and QQQ?
PYPY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, PYPY or QQQ?
PYPY yields 56.79% while QQQ yields 0.44%, so PYPY currently pays the higher dividend yield.
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