PAI vs QQQ
PAI vs QQQ
Western Asset Investment Grade Income Fund Inc. vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PAI offers more diversification with 321 holdings.
Side-by-Side Comparison
| Metric | PAI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.18% | |
| AUM | $123M | $455.8B | |
| Dividend Yield | 4.81% | 0.41% | |
| Holdings | 476 | 108 | |
| YTD Return | -1.82% | +18.34% | |
| 1Y Return | -2.63% | +28.94% | |
| 3Y Return (annualized) | +6.27% | +25.28% | |
| 5Y Return (annualized) | -1.06% | +15.22% | |
| Volatility (annualized) | 12.6% | 30.6% | |
| Max Drawdown | -49.6% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 22, 1973 | Mar 10, 1999 |
PAI vs QQQ Performance
Western Asset Investment Grade Income Fund Inc. (PAI) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PAI returned -2.63% while QQQ returned +28.94%. Year to date, PAI is down 1.82% versus a gain of 18.34% for QQQ.
Over three years, PAI compounded at +6.27% per year against +25.28% for QQQ; over five years the annualized figures are -1.06% and +15.22% respectively. Across the full 27-year window we track, QQQ has the edge at +13.12% annualized vs +0.09%. 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 12.6% for PAI. 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 -49.6% for PAI 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PAI charges 0.73% per year while QQQ charges 0.18%. On a $10,000 position that is $73 vs $18 annually, a gap of $55 per year that compounds over a long holding period. On income, PAI currently yields 4.81% against 0.41% for QQQ.
Holdings Overlap
PAI and QQQ share 0 holdings out of 424 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, PAI or QQQ?
PAI has an expense ratio of 0.73% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $55 per year of difference.
Which performed better, PAI or QQQ?
Over the past year PAI returned -2.63% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), PAI annualized +0.09% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, PAI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.6% for PAI. Worst drawdown: PAI -49.6% vs QQQ -83.0%.
Should I hold both PAI and QQQ?
PAI and QQQ have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAI and QQQ?
PAI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 424 unique securities.
Which pays a higher dividend, PAI or QQQ?
PAI yields 4.81% while QQQ yields 0.41%, so PAI currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.