PY vs QQQ
PY vs QQQ
Principal Value ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
PY has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | PY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $235M | $455.8B | |
| Dividend Yield | 2.14% | 0.41% | |
| Holdings | 100 | 108 | |
| YTD Return | +10.28% | +16.83% | |
| 1Y Return | +16.52% | +26.58% | |
| 3Y Return (annualized) | +13.46% | +24.70% | |
| 5Y Return (annualized) | +8.82% | +14.88% | |
| Volatility (annualized) | 19.2% | 30.6% | |
| Max Drawdown | -45.5% | -83.0% | |
| Fund Family | Principal Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 21, 2016 | Mar 10, 1999 |
PY vs QQQ Performance
Principal Value ETF (PY) is a ETF from Principal Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PY returned +16.52% while QQQ returned +26.58%. Year to date, PY is up 10.28% versus a gain of 16.83% for QQQ.
Over three years, PY compounded at +13.46% per year against +24.70% for QQQ; over five years the annualized figures are +8.82% and +14.88% respectively. Across the full 10-year window we track, QQQ has the edge at +13.06% annualized vs +9.83%. 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 19.2% for PY. 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 -45.5% for PY 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PY charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, PY currently yields 2.14% against 0.41% for QQQ.
Holdings Overlap
PY and QQQ share 22 holdings out of 180 unique holdings combined, representing a 23.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PY | Weight in QQQ | Difference |
|---|---|---|---|
| AAPL | 8.97% | 7.46% | 1.51% |
| AMZN | 2.86% | 4.26% | 1.40% |
| WMT | 2.22% | 2.47% | 0.25% |
| TSLA | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
| INTC | Pro | Pro | Pro |
| COST | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
| TXN | Pro | Pro | Pro |
| TMUS | Pro | Pro | Pro |
See all 10 holdings PY shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, PY or QQQ?
PY has an expense ratio of 0.15% while QQQ charges 0.18%. PY is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, PY or QQQ?
Over the past year PY returned +16.52% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), PY annualized +9.83% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, PY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.2% for PY. Worst drawdown: PY -45.5% vs QQQ -83.0%.
Should I hold both PY and QQQ?
PY and QQQ have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PY and QQQ?
PY and QQQ share 22 common holdings with a 23.2% weight overlap. Combined, they hold 180 unique securities.
Which pays a higher dividend, PY or QQQ?
PY yields 2.14% while QQQ yields 0.41%, so PY currently pays the higher dividend yield.
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