PABD vs QQQ

Quick Verdict

PABD has a lower expense ratio. QQQ delivered stronger 1-year returns. PABD offers more diversification with 404 holdings.

Lower Fees: PABDHigher Returns: QQQMore Diversified: PABD

Side-by-Side Comparison

MetricPABDQQQWinner
Expense Ratio0.12%0.18%
AUM$327M$455.8B
Dividend Yield3.02%0.41%
Holdings432108
YTD Return+8.83%+14.45%
1Y Return+20.99%+24.70%
3Y Return (annualized)-+24.19%
5Y Return (annualized)-+14.49%
Volatility (annualized)12.0%30.6%
Max Drawdown-12.7%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryEquityEquity
InceptionJan 17, 2024Mar 10, 1999

PABD vs QQQ Performance

iShares Paris-Aligned Climate Optimized MSCI World ex USA ETF (PABD) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PABD returned +20.99% while QQQ returned +24.70%. Year to date, PABD is up 8.83% versus a gain of 14.45% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.0% for PABD. 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 -12.7% for PABD 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PABD charges 0.12% per year while QQQ charges 0.18%. On a $10,000 position that is $12 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, PABD currently yields 3.02% against 0.41% for QQQ.

Holdings Overlap

0.9%overlap

PABD and QQQ share 3 holdings out of 504 unique holdings combined, representing a 0.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PABDWeight in QQQDifference
ROP1.30%0.16%1.14%
SHOP:CA0.58%0.67%0.09%
FER:AS0.52%0.20%0.32%

Frequently Asked Questions

Which is cheaper, PABD or QQQ?

PABD has an expense ratio of 0.12% while QQQ charges 0.18%. PABD is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, PABD or QQQ?

Over the past year PABD returned +20.99% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), PABD annualized +19.18% vs +12.98% for QQQ. Past performance does not guarantee future results.

Which is riskier, PABD or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 12.0% for PABD. Worst drawdown: PABD -12.7% vs QQQ -83.0%.

Should I hold both PABD and QQQ?

PABD and QQQ have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PABD and QQQ?

PABD and QQQ share 3 common holdings with a 0.9% weight overlap. Combined, they hold 504 unique securities.

Which pays a higher dividend, PABD or QQQ?

PABD yields 3.02% while QQQ yields 0.41%, so PABD currently pays the higher dividend yield.

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