PARFX vs. QQQM

Last updated Jun 4, 2026

PARFX (T. Rowe Price Retirement 2050 Fund) and QQQM (Invesco NASDAQ 100 ETF) are both funds - PARFX is a Target Retirement Date fund managed by T. Rowe Price, while QQQM is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Over the past 5 years, PARFX returned 9.06%/yr vs 18.07%/yr for QQQM. Their correlation of 0.84 suggests significant overlap in exposure. PARFX charges 0.89%/yr vs 0.15%/yr for QQQM.

Performance

PARFX vs. QQQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Retirement 2050 Fund (PARFX) and Invesco NASDAQ 100 ETF (QQQM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PARFX achieves a 11.60% return, which is significantly lower than QQQM's 21.39% return.

PARFX

• 1D: 0.46%
• 1M: 4.62%
• YTD: 11.60%
• 6M: 12.22%
• 1Y: 25.77%
• 3Y*: 18.43%
• 5Y*: 9.06%
• 10Y*: 11.38%

QQQM

• 1D: -0.20%
• 1M: 10.67%
• YTD: 21.39%
• 6M: 19.75%
• 1Y: 41.98%
• 3Y*: 28.89%
• 5Y*: 18.07%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

PARFX vs. QQQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
PARFX T. Rowe Price Retirement 2050 Fund	11.60%	18.56%	13.90%	20.55%	-19.31%	17.22%	10.15%
QQQM Invesco NASDAQ 100 ETF	21.39%	20.85%	25.68%	55.01%	-32.52%	27.45%	6.67%

Correlation

The correlation between PARFX and QQQM is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (All Time) Calculated using the full available price history since Oct 14, 2020	0.84

The correlation between PARFX and QQQM has been stable across timeframes, ranging from 0.83 to 0.86 - a consistent structural relationship.

Return for Risk

PARFX vs. QQQM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PARFX

PARFX Risk / Return Rank: 55
PARFX Sharpe Ratio Rank: 56
PARFX Sortino Ratio Rank: 53
PARFX Omega Ratio Rank: 56
PARFX Calmar Ratio Rank: 49
PARFX Martin Ratio Rank: 59

QQQM

QQQM Risk / Return Rank: 74
QQQM Sharpe Ratio Rank: 80
QQQM Sortino Ratio Rank: 75
QQQM Omega Ratio Rank: 75
QQQM Calmar Ratio Rank: 69
QQQM Martin Ratio Rank: 71

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PARFX vs. QQQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Retirement 2050 Fund (PARFX) and Invesco NASDAQ 100 ETF (QQQM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	PARFX	QQQM	Difference
Sharpe ratio: Return per unit of total volatility	2.21	2.65	-0.45
Sortino ratio: Return per unit of downside risk	3.07	3.46	-0.39
Omega ratio: Gain probability vs. loss probability	1.41	1.45	-0.04
Calmar ratio: Return relative to maximum drawdown	2.68	3.53	-0.85
Martin ratio: Return relative to average drawdown	11.85	13.52	-1.67
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PARFX vs. QQQM - Sharpe Ratio Comparison

The current PARFX Sharpe Ratio is 2.21, which is comparable to the QQQM Sharpe Ratio of 2.65. The chart below compares the historical Sharpe Ratios of PARFX and QQQM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PARFX	QQQM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.21	2.65	-0.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.60	0.82	-0.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.74	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.47	0.85	-0.38

Drawdowns

PARFX vs. QQQM - Drawdown Comparison

The maximum PARFX drawdown since its inception was -53.67%, which is greater than QQQM's maximum drawdown of -35.04%. Use the drawdown chart below to compare losses from any high point for PARFX and QQQM.

Drawdown Indicators

	PARFX	QQQM	Difference
Max Drawdown Largest peak-to-trough decline	-53.67%	-35.04%	-18.63%
Max Drawdown (1Y) Largest decline over 1 year	-9.77%	-11.96%	+2.19%
Max Drawdown (3Y) Largest decline over 3 years	-15.48%	-22.70%	+7.22%
Max Drawdown (5Y) Largest decline over 5 years	-28.08%	-35.04%	+6.96%
Max Drawdown (10Y) Largest decline over 10 years	-32.52%	—	—
Current Drawdown Current decline from peak	0.00%	-0.20%	+0.20%
Average Drawdown Average peak-to-trough decline	-7.65%	-8.25%	+0.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.20%	3.11%	-0.91%

Volatility

PARFX vs. QQQM - Volatility Comparison

The current volatility for T. Rowe Price Retirement 2050 Fund (PARFX) is 3.52%, while Invesco NASDAQ 100 ETF (QQQM) has a volatility of 4.48%. This indicates that PARFX experiences smaller price fluctuations and is considered to be less risky than QQQM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PARFX	QQQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.52%	4.48%	-0.96%
Volatility (6M) Calculated over the trailing 6-month period	9.57%	12.05%	-2.48%
Volatility (1Y) Calculated over the trailing 1-year period	11.85%	15.91%	-4.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.06%	22.24%	-7.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.42%	22.12%	-6.70%

PARFX vs. QQQM - Expense Ratio Comparison

PARFX has a 0.89% expense ratio, which is higher than QQQM's 0.15% expense ratio.

Dividends

PARFX vs. QQQM - Dividend Comparison

PARFX's dividend yield for the trailing twelve months is around 3.42%, more than QQQM's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PARFX T. Rowe Price Retirement 2050 Fund	3.42%	3.82%	1.69%	4.32%	7.60%	6.77%	4.27%	5.55%	8.33%	2.34%	3.11%	4.00%
QQQM Invesco NASDAQ 100 ETF	0.41%	0.50%	0.61%	0.65%	0.83%	0.40%	0.16%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PARFX and QQQM in my portfolio?

PARFX and QQQM have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PARFX or QQQM?

QQQM has higher volatility (4.48%) compared to PARFX (3.52%). In terms of maximum drawdown, PARFX dropped -53.67% vs QQQM's -35.04%.

Which has better risk-adjusted returns?

QQQM currently has the higher Sharpe Ratio (2.65 vs 2.21), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.