PSQA vs QQQ
PSQA vs QQQ
Palmer Square CLO Senior Debt ETF 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 | PSQA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.21% | 0.18% | |
| AUM | $147M | $455.8B | |
| Dividend Yield | 4.77% | 0.41% | |
| Holdings | 90 | 108 | |
| YTD Return | +3.14% | +17.27% | |
| 1Y Return | +5.63% | +28.64% | |
| 3Y Return (annualized) | - | +24.88% | |
| 5Y Return (annualized) | - | +14.86% | |
| Volatility (annualized) | 1.2% | 30.6% | |
| Max Drawdown | -1.3% | -83.0% | |
| Fund Family | Palmer Square Capital Management | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 11, 2024 | Mar 10, 1999 |
PSQA vs QQQ Performance
Palmer Square CLO Senior Debt ETF (PSQA) is a ETF from Palmer Square Capital Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSQA returned +5.63% while QQQ returned +28.64%. Year to date, PSQA is up 3.14% 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 1.2% for PSQA. 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 -1.3% for PSQA 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSQA charges 0.21% per year while QQQ charges 0.18%. On a $10,000 position that is $21 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, PSQA currently yields 4.77% against 0.41% for QQQ.
Holdings Overlap
PSQA and QQQ share 0 holdings out of 120 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, PSQA or QQQ?
PSQA has an expense ratio of 0.21% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, PSQA or QQQ?
Over the past year PSQA returned +5.63% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), PSQA annualized +5.75% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSQA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 1.2% for PSQA. Worst drawdown: PSQA -1.3% vs QQQ -83.0%.
Should I hold both PSQA and QQQ?
PSQA and QQQ have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSQA and QQQ?
PSQA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 120 unique securities.
Which pays a higher dividend, PSQA or QQQ?
PSQA yields 4.77% while QQQ yields 0.41%, so PSQA currently pays the higher dividend yield.
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