PALC vs QQQ
Pacer Lunt Large Cap Multi-Factor Alternator ETF vs Invesco QQQ Trust, Series 1
Which is better, PALC or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. PALC is less concentrated, with 28.6% of the fund in its ten largest positions against 46.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PALC | QQQ |
|---|---|---|
| Expense Ratio | 0.60% | 0.18%Best |
| AUM | $197M | $506.1B |
| Dividend Yield | 1.29% | 0.42% |
| Holdings | 361 | 321 |
| YTD Return | +2.16% | +19.30%Best |
| 1Y Return | +5.40% | +22.47%Best |
| 3Y Return (annualized) | +13.64% | +26.18%Best |
| 5Y Return (annualized) | +7.16% | +15.42%Best |
| Volatility (annualized) | 17.3%Best | 20.3% |
| Max Drawdown | -24.4%Best | -35.1% |
| $10,000 over 5 years | $14,131 | $20,484Best |
| Top 10 Weight | 28.6%Best | 46.7% |
| Fund Family | Pacer ETFs | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Jun 24, 2020 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jun 25, 2020 to Oct 14, 2026 (6.3 years).
PALC vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.3 years both funds cover.
PALC vs QQQ Performance
Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) is an ETF from Pacer ETFs and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PALC returned +5.40% while QQQ returned +22.47%. Year to date, PALC is up 2.16% versus a gain of 19.30% for QQQ.
Over three years, PALC compounded at +13.64% per year against +26.18% for QQQ; over five years the annualized figures are +7.16% and +15.42% respectively. Across the full 6-year window we track, QQQ has the edge at +19.44% annualized vs +14.08%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 17.3% for PALC. 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 -24.4% for PALC and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PALC charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, PALC currently yields 1.29% against 0.42% for QQQ.
Holdings Overlap
23.1% of PALC's money is in holdings QQQ also owns. 11.3% of QQQ's money is in holdings PALC also owns.
PALC and QQQ share little of their money.
20 positions in common, counted across the 180 positions we hold weights for in PALC and 101 in QQQ, against full books of 361 and 321.
What only one of them owns
Our book lists 73 positions for QQQ that do not appear in our book for PALC (84.9% of the fund), and 159 for PALC that do not appear in QQQ (76.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PALC | Weight in QQQ | Difference |
|---|---|---|---|
| METAMeta Platform Inc | 5.98% | 3.26% | 2.72% |
| PLTRPalantir Technologies Inc | 3.28% | 1.80% | 1.48% |
| NFLXNetflix, Inc. | 2.65% | 1.21% | 1.44% |
| CMCSAComcast Corp. Class A | 2.04% | 0.32% | 1.72% |
| ISRGIntuitive Surgical Inc | 1.19% | 0.60% | 0.59% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.69% | 0.73% | 0.04% |
| ADPAutomatic Data Processing, Inc. | 0.79% | 0.43% | 0.36% |
| ADBEAdobe Inc | 0.81% | 0.40% | 0.41% |
| SNPSSynopsys Inc. | 0.77% | 0.35% | 0.42% |
| INTUIntuit, Inc. | 0.76% | 0.32% | 0.44% |
23.1% of PALC is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PALC or QQQ?
PALC has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option, by $42 a year on a $10,000 investment.
Which performed better, PALC or QQQ?
Over the past year PALC returned +5.40% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), PALC annualized +14.08% vs +19.44% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PALC or QQQ?
QQQ has been the more volatile fund at 20.3% annualized versus 17.3% for PALC. Worst drawdown: PALC -24.4% vs QQQ -35.1%.
Should I hold both PALC and QQQ?
PALC and QQQ have a monthly-return correlation of 0.73, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PALC and QQQ?
23.1% of PALC's money is in holdings QQQ also owns. 11.3% of QQQ's is in holdings PALC also owns. They hold 20 positions in common, counted across the 180 positions we hold weights for in PALC and 101 in QQQ.
Which pays a higher dividend, PALC or QQQ?
PALC yields 1.29% while QQQ yields 0.42%, so PALC currently pays the higher dividend yield.
Is QQQ better than PALC?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. PALC is less concentrated, with 28.6% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.