PHYL vs QQQ
PHYL vs QQQ
PGIM Active High Yield Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PHYL offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | PHYL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $1.4B | $455.8B | |
| Dividend Yield | 8.24% | 0.41% | |
| Holdings | 804 | 108 | |
| YTD Return | +2.05% | +17.27% | |
| 1Y Return | +5.30% | +28.64% | |
| 3Y Return (annualized) | +8.46% | +24.88% | |
| 5Y Return (annualized) | +3.90% | +14.86% | |
| Volatility (annualized) | 8.7% | 30.6% | |
| Max Drawdown | -23.5% | -83.0% | |
| Fund Family | PGIM Investments | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 24, 2018 | Mar 10, 1999 |
PHYL vs QQQ Performance
PGIM Active High Yield Bond ETF (PHYL) is a ETF from PGIM Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PHYL returned +5.30% while QQQ returned +28.64%. Year to date, PHYL is up 2.05% versus a gain of 17.27% for QQQ.
Over three years, PHYL compounded at +8.46% per year against +24.88% for QQQ; over five years the annualized figures are +3.90% and +14.86% respectively. Across the full 8-year window we track, QQQ has the edge at +13.08% annualized vs +3.06%. 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 8.7% for PHYL. 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 -23.5% for PHYL 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PHYL charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, PHYL currently yields 8.24% against 0.41% for QQQ.
Holdings Overlap
PHYL and QQQ share 0 holdings out of 719 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, PHYL or QQQ?
PHYL has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, PHYL or QQQ?
Over the past year PHYL returned +5.30% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), PHYL annualized +3.06% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, PHYL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.7% for PHYL. Worst drawdown: PHYL -23.5% vs QQQ -83.0%.
Should I hold both PHYL and QQQ?
PHYL and QQQ have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHYL and QQQ?
PHYL and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 719 unique securities.
Which pays a higher dividend, PHYL or QQQ?
PHYL yields 8.24% while QQQ yields 0.41%, so PHYL currently pays the higher dividend yield.
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