PHEQ vs QQQ
PHEQ vs QQQ
Parametric Hedged Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PHEQ offers more diversification with 173 holdings.
Side-by-Side Comparison
| Metric | PHEQ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $137M | $455.8B | |
| Dividend Yield | 0.94% | 0.41% | |
| Holdings | 186 | 108 | |
| YTD Return | +7.07% | +16.83% | |
| 1Y Return | +12.93% | +26.58% | |
| 3Y Return (annualized) | - | +24.70% | |
| 5Y Return (annualized) | - | +14.88% | |
| Volatility (annualized) | 6.8% | 30.6% | |
| Max Drawdown | -12.6% | -83.0% | |
| Fund Family | Parametric | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 16, 2023 | Mar 10, 1999 |
PHEQ vs QQQ Performance
Parametric Hedged Equity ETF (PHEQ) is a ETF from Parametric and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PHEQ returned +12.93% while QQQ returned +26.58%. Year to date, PHEQ is up 7.07% versus a gain of 16.83% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 6.8% for PHEQ. 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 -12.6% for PHEQ 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PHEQ charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, PHEQ currently yields 0.94% against 0.41% for QQQ.
Holdings Overlap
PHEQ and QQQ share 40 holdings out of 236 unique holdings combined, representing a 53.1% weight overlap.
High overlap means holding both may not provide much additional diversification.
Top Shared Holdings
| Stock | Weight in PHEQ | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 8.66% | 7.88% | 0.78% |
| AAPL | 7.30% | 7.46% | 0.16% |
| MSFT | 5.09% | 4.65% | 0.44% |
| AMZN | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
See all 10 holdings PHEQ shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, PHEQ or QQQ?
PHEQ has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, PHEQ or QQQ?
Over the past year PHEQ returned +12.93% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), PHEQ annualized +15.03% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, PHEQ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.8% for PHEQ. Worst drawdown: PHEQ -12.6% vs QQQ -83.0%.
Should I hold both PHEQ and QQQ?
PHEQ and QQQ have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHEQ and QQQ?
PHEQ and QQQ share 40 common holdings with a 53.1% weight overlap. Combined, they hold 236 unique securities.
Which pays a higher dividend, PHEQ or QQQ?
PHEQ yields 0.94% while QQQ yields 0.41%, so PHEQ currently pays the higher dividend yield.
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