PBDC vs QQQ
Putnam BDC Income ETF vs Invesco QQQ Trust, Series 1
Which is better, PBDC or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.7% of the fund in its ten largest positions against 69.8%.
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 | PBDC | QQQ |
|---|---|---|
| Expense Ratio | 11.77% | 0.18%Best |
| AUM | $269M | $506.1B |
| Dividend Yield | 11.33% | 0.42% |
| Holdings | 28 | 321 |
| YTD Return | -13.78% | +19.30%Best |
| 1Y Return | -10.37% | +22.47%Best |
| 3Y Return (annualized) | +2.54% | +26.18%Best |
| 5Y Return (annualized) | - | +15.42% |
| Volatility (annualized) | 15.2%Best | 17.9% |
| Max Drawdown | -20.5%Best | -22.8% |
| $10,000 over 4 years | $14,662 | $27,658Best |
| Top 10 Weight | 69.8% | 46.7%Best |
| Fund Family | Putnam Investments | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Sep 29, 2022 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: Sep 30, 2022 to Oct 14, 2026 (4 years).
PBDC 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 4 years both funds cover.
PBDC vs QQQ Performance
Putnam BDC Income ETF (PBDC) is an ETF from Putnam Investments and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PBDC returned -10.37% while QQQ returned +22.47%. Year to date, PBDC is down 13.78% versus a gain of 19.30% for QQQ.
Over three years, PBDC compounded at +2.54% per year against +26.18% for QQQ. Across the full 4-year window we track, QQQ has the edge at +28.96% annualized vs +10.04%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.9% compared with 15.2% for PBDC. 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 -20.5% for PBDC and -22.8% 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 0.37. They move together some of the time, and apart the rest.
Fees and Cost Over Time
PBDC charges 11.77% per year while QQQ charges 0.18%. On a $10,000 position that is $1177 vs $18 annually, a gap of $1159 per year that compounds over a long holding period. On income, PBDC currently yields 11.33% against 0.42% for QQQ.
Holdings Overlap
We hold position weights for 27 holdings in PBDC and 101 in QQQ, totalling 100.0% and 99.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 27 positions we hold weights for in PBDC and 101 in QQQ, against full books of 28 and 321.
What only one of them owns
Measured across the 27 and 101 positions we hold weights for.
QQQ holds 93 positions PBDC does not, 96.3% of the fund.
Largest: NVDA 8.33%, AAPL 7.35%, MSFT 5.76%, MU 5.02%, AMD 4.17%
You are not choosing between two funds in isolation.
Whichever of PBDC and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PBDC or QQQ?
PBDC has an expense ratio of 11.77% while QQQ charges 0.18%. QQQ is the cheaper option, by $1159 a year on a $10,000 investment.
Which performed better, PBDC or QQQ?
Over the past year PBDC returned -10.37% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), PBDC annualized +10.04% vs +28.96% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PBDC or QQQ?
QQQ has been the more volatile fund at 17.9% annualized versus 15.2% for PBDC. Worst drawdown: PBDC -20.5% vs QQQ -22.8%.
Should I hold both PBDC and QQQ?
PBDC and QQQ have a monthly-return correlation of 0.37, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, PBDC or QQQ?
PBDC yields 11.33% while QQQ yields 0.42%, so PBDC currently pays the higher dividend yield.
Is QQQ better than PBDC?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.7% of the fund in its ten largest positions against 69.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.