PSF vs QQQ
PSF vs QQQ
Cohen & Steers Select Preferred and Income Fund Inc. vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PSF offers more diversification with 187 holdings.
Side-by-Side Comparison
| Metric | PSF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.59% | 0.18% | |
| AUM | $2,687.94 | $455.8B | |
| Dividend Yield | 6.91% | 0.41% | |
| Holdings | 332 | 108 | |
| 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 Family | Cohen & Steers Funds | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Nov 24, 2010 | Mar 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
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.
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