PMBS vs QQQ
PMBS vs QQQ
PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PMBS offers more diversification with 143 holdings.
Side-by-Side Comparison
| Metric | PMBS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.18% | |
| AUM | $1.4B | $455.8B | |
| Dividend Yield | 4.97% | 0.41% | |
| Holdings | 1,126 | 108 | |
| YTD Return | -0.04% | +12.48% | |
| 1Y Return | +4.49% | +22.35% | |
| 3Y Return (annualized) | - | +22.30% | |
| 5Y Return (annualized) | - | +14.24% | |
| Volatility (annualized) | 4.5% | 30.6% | |
| Max Drawdown | -3.1% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 20, 2024 | Mar 10, 1999 |
PMBS vs QQQ Performance
PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PMBS returned +4.49% while QQQ returned +22.35%. Year to date, PMBS is down 0.04% versus a gain of 12.48% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.5% for PMBS. 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 -3.1% for PMBS 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PMBS charges 0.71% per year while QQQ charges 0.18%. On a $10,000 position that is $71 vs $18 annually, a gap of $53 per year that compounds over a long holding period. On income, PMBS currently yields 4.97% against 0.41% for QQQ.
Holdings Overlap
PMBS and QQQ share 0 holdings out of 246 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, PMBS or QQQ?
PMBS has an expense ratio of 0.71% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, PMBS or QQQ?
Over the past year PMBS returned +4.49% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), PMBS annualized +5.02% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, PMBS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.5% for PMBS. Worst drawdown: PMBS -3.1% vs QQQ -83.0%.
Should I hold both PMBS and QQQ?
PMBS and QQQ have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PMBS and QQQ?
PMBS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 246 unique securities.
Which pays a higher dividend, PMBS or QQQ?
PMBS yields 4.97% while QQQ yields 0.41%, so PMBS currently pays the higher dividend yield.
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