PDEC vs. QQQ

Last updated Jun 24, 2026

PDEC (Innovator U.S. Equity Power Buffer ETF - December) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - PDEC is a Defined Outcome fund tracking the S&P 500, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 5 years, PDEC returned 8.33%/yr vs 16.01%/yr for QQQ. Their correlation of 0.84 suggests significant overlap in exposure. PDEC charges 0.79%/yr vs 0.18%/yr for QQQ.

Performance

PDEC vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator U.S. Equity Power Buffer ETF - December (PDEC) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PDEC achieves a 4.91% return, which is significantly lower than QQQ's 16.45% return.

PDEC

• 1D: -0.61%
• 1M: -0.15%
• YTD: 4.91%
• 6M: 4.48%
• 1Y: 15.68%
• 3Y*: 11.56%
• 5Y*: 8.33%
• 10Y*: —

QQQ

• 1D: -3.29%
• 1M: -0.43%
• YTD: 16.45%
• 6M: 14.99%
• 1Y: 34.88%
• 3Y*: 26.05%
• 5Y*: 16.01%
• 10Y*: 22.07%

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

PDEC vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
PDEC Innovator U.S. Equity Power Buffer ETF - December	4.91%	12.91%	9.46%	17.43%	-5.95%	9.59%	8.45%	0.91%
QQQ Invesco QQQ ETF	16.45%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	3.89%

Correlation

The correlation between PDEC and QQQ is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Dec 2, 2019	0.84

The correlation between PDEC and QQQ has been stable across timeframes, ranging from 0.84 to 0.89 - a consistent structural relationship.

PDEC vs. QQQ - Sectors Allocation Comparison

Sectors	PDEC	QQQ
Technology	38.4%	58.7%
Financial Services	11.0%	0.2%
Communication Services	10.8%	14.3%
Consumer Cyclical	10.0%	11.4%
Healthcare	8.4%	3.7%
Industrials	7.9%	2.6%
Consumer Defensive	4.6%	6.4%
Energy	3.2%	0.5%
Utilities	2.1%	1.2%
Real Estate	1.8%	0.1%
Basic Materials	1.7%	1.0%

Return for Risk

PDEC vs. QQQ — Risk / Return Rank

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

PDEC

PDEC Risk / Return Rank: 80
PDEC Sharpe Ratio Rank: 78
PDEC Sortino Ratio Rank: 83
PDEC Omega Ratio Rank: 82
PDEC Calmar Ratio Rank: 71
PDEC Martin Ratio Rank: 86

QQQ

QQQ Risk / Return Rank: 59
QQQ Sharpe Ratio Rank: 61
QQQ Sortino Ratio Rank: 55
QQQ Omega Ratio Rank: 58
QQQ Calmar Ratio Rank: 61
QQQ Martin Ratio Rank: 62

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.

PDEC vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Equity Power Buffer ETF - December (PDEC) and Invesco QQQ ETF (QQQ). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	PDEC	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.30	1.95	+0.35
Sortino ratio: Return per unit of downside risk	3.36	2.57	+0.79
Omega ratio: Gain probability vs. loss probability	1.45	1.35	+0.10
Calmar ratio: Return relative to maximum drawdown	3.30	2.93	+0.37
Martin ratio: Return relative to average drawdown	16.77	10.86	+5.91

PDEC vs. QQQ - Sharpe Ratio Comparison

The current PDEC Sharpe Ratio is 2.30, which is comparable to the QQQ Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of PDEC and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

PDEC vs. QQQ - Drawdown Comparison

The maximum PDEC drawdown since its inception was -19.31%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for PDEC and QQQ.

Drawdown Indicators

	PDEC	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-19.31%	-82.97%	+63.66%
Max Drawdown (1Y) Largest decline over 1 year	-4.78%	-11.96%	+7.18%
Max Drawdown (3Y) Largest decline over 3 years	-10.77%	-22.77%	+12.00%
Max Drawdown (5Y) Largest decline over 5 years	-11.53%	-35.12%	+23.59%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.12%	—
Current Drawdown Current decline from peak	-0.96%	-4.25%	+3.29%
Average Drawdown Average peak-to-trough decline	-2.01%	-32.73%	+30.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.94%	3.22%	-2.28%

Volatility

PDEC vs. QQQ - Volatility Comparison

The current volatility for Innovator U.S. Equity Power Buffer ETF - December (PDEC) is 2.05%, while Invesco QQQ ETF (QQQ) has a volatility of 9.17%. This indicates that PDEC experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PDEC	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.05%	9.17%	-7.12%
Volatility (6M) Calculated over the trailing 6-month period	5.21%	14.57%	-9.36%
Volatility (1Y) Calculated over the trailing 1-year period	6.87%	17.96%	-11.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.94%	22.69%	-13.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.95%	22.42%	-11.47%

PDEC vs. QQQ - Expense Ratio Comparison

PDEC has a 0.79% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

PDEC vs. QQQ - Dividend Comparison

PDEC has not paid dividends to shareholders, while QQQ's dividend yield for the trailing twelve months is around 0.43%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PDEC Innovator U.S. Equity Power Buffer ETF - December	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
QQQ Invesco QQQ ETF	0.43%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both PDEC and QQQ in my portfolio?

PDEC and QQQ have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PDEC or QQQ?

QQQ has higher volatility (9.17%) compared to PDEC (2.05%). In terms of maximum drawdown, PDEC dropped -19.31% vs QQQ's -82.97%.

Which ETF is better, PDEC or QQQ?

On 5-year performance, QQQ leads with 16.01% vs 8.33% for PDEC. On fees, QQQ is cheaper at 0.18% per year. On volatility, PDEC has been the lower-risk option at 2.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PDEC or QQQ?

Over the 5-year period, QQQ has performed better with a 16.01% return vs 8.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PDEC or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.79% for PDEC.

Which ETF pays a higher dividend yield, PDEC or QQQ?

QQQ has the higher dividend yield at 0.43%, compared with 0.00% for PDEC.

What is the main difference between PDEC and QQQ?

PDEC is categorized as Defined Outcome, while QQQ is Nasdaq-100. PDEC tracks S&P 500, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: Innovator and Invesco. Their fees differ too: 0.79% for PDEC and 0.18% for QQQ.

Which has better risk-adjusted returns?

PDEC currently has the higher Sharpe Ratio (2.30 vs 1.95), 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.