PMIO vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricPMIOQQQWinner
Expense Ratio0.25%0.18%
AUM$50M$455.8B
Dividend Yield4.56%0.41%
Holdings78108
YTD Return+1.05%+17.27%
1Y Return+4.93%+28.64%
3Y Return (annualized)-+24.88%
5Y Return (annualized)-+14.86%
Volatility (annualized)3.5%30.6%
Max Drawdown-3.4%-83.0%
Fund FamilyPGIM InvestmentsInvesco (US)
CategoryTax PreferredEquity
InceptionJun 14, 2024Mar 10, 1999

PMIO vs QQQ Performance

PGIM Municipal Income Opportunities ETF (PMIO) is a ETF from PGIM Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PMIO returned +4.93% while QQQ returned +28.64%. Year to date, PMIO is up 1.05% versus a gain of 17.27% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.5% for PMIO. 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 -3.4% for PMIO 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PMIO charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, PMIO currently yields 4.56% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

PMIO and QQQ share 0 holdings out of 123 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, PMIO or QQQ?

PMIO has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.

Which performed better, PMIO or QQQ?

Over the past year PMIO returned +4.93% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), PMIO annualized +4.21% vs +13.08% for QQQ. Past performance does not guarantee future results.

Which is riskier, PMIO or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 3.5% for PMIO. Worst drawdown: PMIO -3.4% vs QQQ -83.0%.

Should I hold both PMIO and QQQ?

PMIO and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PMIO and QQQ?

PMIO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 123 unique securities.

Which pays a higher dividend, PMIO or QQQ?

PMIO yields 4.56% while QQQ yields 0.41%, so PMIO currently pays the higher dividend yield.

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