PSF vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PSF offers more diversification with 187 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: PSF

Side-by-Side Comparison

MetricPSFQQQWinner
Expense Ratio1.59%0.18%
AUM$2,687.94$455.8B
Dividend Yield6.91%0.41%
Holdings332108
YTD Return+0.05%+14.45%
1Y Return+1.96%+24.70%
3Y Return (annualized)+9.11%+24.19%
5Y Return (annualized)-1.67%+14.49%
Volatility (annualized)16.6%30.6%
Max Drawdown-55.4%-83.0%
Fund FamilyCohen & Steers FundsInvesco (US)
CategoryAllocation/BalancedEquity
InceptionNov 24, 2010Mar 10, 1999

PSF vs QQQ Performance

Cohen & Steers Select Preferred and Income Fund Inc. (PSF) is a ETF from Cohen & Steers Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSF returned +1.96% while QQQ returned +24.70%. Year to date, PSF is up 0.05% versus a gain of 14.45% for QQQ.

Over three years, PSF compounded at +9.11% per year against +24.19% for QQQ; over five years the annualized figures are -1.67% and +14.49% respectively. Across the full 16-year window we track, QQQ has the edge at +12.98% annualized vs +1.18%. 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 16.6% for PSF. 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 -55.4% for PSF 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PSF charges 1.59% per year while QQQ charges 0.18%. On a $10,000 position that is $159 vs $18 annually, a gap of $141 per year that compounds over a long holding period. On income, PSF currently yields 6.91% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

PSF and QQQ share 0 holdings out of 290 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, PSF or QQQ?

PSF has an expense ratio of 1.59% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $141 per year of difference.

Which performed better, PSF or QQQ?

Over the past year PSF returned +1.96% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), PSF annualized +1.18% vs +12.98% for QQQ. Past performance does not guarantee future results.

Which is riskier, PSF or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 16.6% for PSF. Worst drawdown: PSF -55.4% vs QQQ -83.0%.

Should I hold both PSF and QQQ?

PSF and QQQ have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PSF and QQQ?

PSF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 290 unique securities.

Which pays a higher dividend, PSF or QQQ?

PSF yields 6.91% while QQQ yields 0.41%, so PSF currently pays the higher dividend yield.

Get Full ETF Analytics

Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.

See inside every ETF you own
$29/moCancel anytime.
Try FundXLS →