PZT vs QQQ
Invesco New York AMT-Free Municipal Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PZT offers more diversification with 1,230 holdings.
Side-by-Side Comparison
| Metric | PZT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.18% | |
| AUM | $141M | $496.3B | |
| Dividend Yield | 3.73% | 0.44% | |
| Holdings | 1,230 | 108 | |
| YTD Return | +1.11% | +16.64% | |
| 1Y Return | +7.53% | +27.27% | |
| 3Y Return (annualized) | +3.35% | +25.96% | |
| 5Y Return (annualized) | -0.44% | +14.54% | |
| Volatility (annualized) | 7.3% | 30.6% | |
| Max Drawdown | -25.4% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 11, 2007 | Mar 10, 1999 |
PZT vs QQQ Performance
Invesco New York AMT-Free Municipal Bond ETF (PZT) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PZT returned +7.53% while QQQ returned +27.27%. Year to date, PZT is up 1.11% versus a gain of 16.64% for QQQ.
Over three years, PZT compounded at +3.35% per year against +25.96% for QQQ; over five years the annualized figures are -0.44% and +14.54% respectively. Across the full 19-year window we track, QQQ has the edge at +13.03% annualized vs +0.22%. 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 7.3% for PZT. 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 -25.4% for PZT 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PZT charges 0.28% per year while QQQ charges 0.18%. On a $10,000 position that is $28 vs $18 annually, a gap of $10 per year that compounds over a long holding period. On income, PZT currently yields 3.73% against 0.44% for QQQ.
Holdings Overlap
PZT and QQQ share 0 holdings out of 356 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, PZT or QQQ?
PZT has an expense ratio of 0.28% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, PZT or QQQ?
Over the past year PZT returned +7.53% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), PZT annualized +0.22% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PZT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.3% for PZT. Worst drawdown: PZT -25.4% vs QQQ -83.0%.
Should I hold both PZT and QQQ?
PZT and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PZT and QQQ?
PZT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 356 unique securities.
Which pays a higher dividend, PZT or QQQ?
PZT yields 3.73% while QQQ yields 0.44%, so PZT currently pays the higher dividend yield.
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