PEJ vs QQQ
Invesco Leisure and Entertainment ETF vs Invesco QQQ Trust, Series 1
Which is better, PEJ or QQQ?
QQQ has been ahead.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. PEJ is less concentrated, with 45.9% 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 | PEJ | QQQ |
|---|---|---|
| Expense Ratio | 0.58% | 0.18%Best |
| AUM | $344M | $506.1B |
| Dividend Yield | 0.54% | 0.42% |
| Holdings | 66 | 321 |
| YTD Return | +3.94% | +19.30%Best |
| 1Y Return | +8.79% | +22.47%Best |
| 3Y Return (annualized) | +20.18% | +26.18%Best |
| 5Y Return (annualized) | +4.34% | +15.42%Best |
| Volatility (annualized) | 22.1% | 18.4%Best |
| Max Drawdown | -67.3% | -53.5%Best |
| $10,000 over 5 years | $12,367 | $20,484Best |
| Top 10 Weight | 45.9%Best | 46.7% |
| Fund Family | Invesco (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Jun 23, 2005 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jun 23, 2005 to Oct 14, 2026 (21.3 years).
PEJ 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 21.3 years both funds cover.
PEJ vs QQQ Performance
Invesco Leisure and Entertainment ETF (PEJ) is an ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PEJ returned +8.79% while QQQ returned +22.47%. Year to date, PEJ is up 3.94% versus a gain of 19.30% for QQQ.
Over three years, PEJ compounded at +20.18% per year against +26.18% for QQQ; over five years the annualized figures are +4.34% and +15.42% respectively. Across the full 21-year window we track, QQQ has the edge at +15.14% annualized vs +7.18%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PEJ has been the more volatile fund, with annualized monthly volatility of 22.1% compared with 18.4% for QQQ. 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 -67.3% for PEJ and -53.5% 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PEJ charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, PEJ currently yields 0.54% against 0.42% for QQQ.
Holdings Overlap
15.0% of PEJ's money is in holdings QQQ also owns. 1.1% of QQQ's money is in holdings PEJ also owns.
PEJ and QQQ share little of their money.
3 positions in common, counted across the 30 positions we hold weights for in PEJ and 101 in QQQ, against full books of 66 and 321.
What only one of them owns
Our book lists 90 positions for QQQ that do not appear in our book for PEJ (95.2% of the fund), and 26 for PEJ that do not appear in QQQ (79.2%).
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.
You are not choosing between two funds in isolation.
Whichever of PEJ 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, PEJ or QQQ?
PEJ has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option, by $40 a year on a $10,000 investment.
Which performed better, PEJ or QQQ?
Over the past year PEJ returned +8.79% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), PEJ annualized +7.18% vs +15.14% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PEJ or QQQ?
PEJ has been the more volatile fund at 22.1% annualized versus 18.4% for QQQ. Worst drawdown: PEJ -67.3% vs QQQ -53.5%.
Should I hold both PEJ and QQQ?
PEJ and QQQ have a monthly-return correlation of 0.72, 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 PEJ and QQQ?
15.0% of PEJ's money is in holdings QQQ also owns. 1.1% of QQQ's is in holdings PEJ also owns. They hold 3 positions in common, counted across the 30 positions we hold weights for in PEJ and 101 in QQQ.
Which pays a higher dividend, PEJ or QQQ?
PEJ yields 0.54% while QQQ yields 0.42%, so PEJ currently pays the higher dividend yield.
Is QQQ better than PEJ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. PEJ is less concentrated, with 45.9% 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.