PPT vs QQQ
PPT vs QQQ
Putnam Premier Income Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | PPT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.93% | 0.18% | |
| AUM | $1,660.6 | $455.8B | |
| Dividend Yield | 8.41% | 0.41% | |
| Holdings | 766 | 108 | |
| YTD Return | +1.77% | +18.34% | |
| 1Y Return | +2.31% | +28.94% | |
| 3Y Return (annualized) | +7.04% | +25.28% | |
| 5Y Return (annualized) | +2.57% | +15.22% | |
| Volatility (annualized) | 11.5% | 30.6% | |
| Max Drawdown | -65.9% | -83.0% | |
| Fund Family | Putnam Investments | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 29, 1988 | Mar 10, 1999 |
PPT vs QQQ Performance
Putnam Premier Income Trust (PPT) is a ETF from Putnam Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PPT returned +2.31% while QQQ returned +28.94%. Year to date, PPT is up 1.77% versus a gain of 18.34% for QQQ.
Over three years, PPT compounded at +7.04% per year against +25.28% for QQQ; over five years the annualized figures are +2.57% and +15.22% respectively. Across the full 27-year window we track, QQQ has the edge at +13.12% annualized vs -1.14%. 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 11.5% for PPT. 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 -65.9% for PPT 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 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PPT charges 0.93% per year while QQQ charges 0.18%. On a $10,000 position that is $93 vs $18 annually, a gap of $75 per year that compounds over a long holding period. On income, PPT currently yields 8.41% against 0.41% for QQQ.
Holdings Overlap
PPT and QQQ share 0 holdings out of 107 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, PPT or QQQ?
PPT has an expense ratio of 0.93% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $75 per year of difference.
Which performed better, PPT or QQQ?
Over the past year PPT returned +2.31% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), PPT annualized -1.14% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, PPT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.5% for PPT. Worst drawdown: PPT -65.9% vs QQQ -83.0%.
Should I hold both PPT and QQQ?
PPT and QQQ have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PPT and QQQ?
PPT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.
Which pays a higher dividend, PPT or QQQ?
PPT yields 8.41% while QQQ yields 0.41%, so PPT currently pays the higher dividend yield.
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