PEPS vs. QQA

Last updated Jun 3, 2026

PEPS (Parametric Equity Plus ETF) and QQA (Invesco QQQ Income Advantage ETF) are both Derivative Income funds. Both are actively managed. Over the past year, PEPS returned 33.38% vs 33.20% for QQA. Their correlation of 0.91 suggests significant overlap in exposure. PEPS charges 0.10%/yr vs 0.29%/yr for QQA.

Performance

PEPS vs. QQA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Parametric Equity Plus ETF (PEPS) and Invesco QQQ Income Advantage ETF (QQA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PEPS achieves a 11.24% return, which is significantly lower than QQA's 14.68% return.

PEPS

• 1D: 0.14%
• 1M: 6.48%
• YTD: 11.24%
• 6M: 11.73%
• 1Y: 33.38%
• 3Y*: —
• 5Y*: —
• 10Y*: —

QQA

• 1D: 0.33%
• 1M: 7.02%
• YTD: 14.68%
• 6M: 14.53%
• 1Y: 33.20%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PEPS vs. QQA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PEPS Parametric Equity Plus ETF	11.24%	20.32%	-1.45%
QQA Invesco QQQ Income Advantage ETF	14.68%	17.24%	0.10%

Correlation

The correlation between PEPS and QQA is 0.93, 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	0.93
Correlation (All Time) Calculated using the full available price history since Nov 11, 2024	0.91

The correlation between PEPS and QQA has been stable across timeframes, ranging from 0.91 to 0.93 - a consistent structural relationship.

Return for Risk

PEPS vs. QQA — Risk / Return Rank

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

PEPS

PEPS Risk / Return Rank: 75
PEPS Sharpe Ratio Rank: 77
PEPS Sortino Ratio Rank: 73
PEPS Omega Ratio Rank: 77
PEPS Calmar Ratio Rank: 68
PEPS Martin Ratio Rank: 81

QQA

QQA Risk / Return Rank: 80
QQA Sharpe Ratio Rank: 81
QQA Sortino Ratio Rank: 78
QQA Omega Ratio Rank: 79
QQA Calmar Ratio Rank: 76
QQA Martin Ratio Rank: 84

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.

PEPS vs. QQA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Parametric Equity Plus ETF (PEPS) and Invesco QQQ Income Advantage ETF (QQA). 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.

	PEPS	QQA	Difference
Sharpe ratio Return per unit of total volatility	2.57	2.65	-0.08
Sortino ratio Return per unit of downside risk	3.36	3.56	-0.20
Omega ratio Gain probability vs. loss probability	1.47	1.48	-0.01
Calmar ratio Return relative to maximum drawdown	3.46	3.91	-0.44
Martin ratio Return relative to average drawdown	16.23	17.57	-1.33
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PEPS vs. QQA - Sharpe Ratio Comparison

The current PEPS Sharpe Ratio is 2.57, which is comparable to the QQA Sharpe Ratio of 2.65. The chart below compares the historical Sharpe Ratios of PEPS and QQA, 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

	PEPS	QQA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.57	2.65	-0.08
Sharpe Ratio (All Time) Calculated using the full available price history	1.07	1.18	-0.11

Drawdowns

PEPS vs. QQA - Drawdown Comparison

The maximum PEPS drawdown since its inception was -21.26%, which is greater than QQA's maximum drawdown of -19.73%. Use the drawdown chart below to compare losses from any high point for PEPS and QQA.

Drawdown Indicators

	PEPS	QQA	Difference
Max Drawdown Largest peak-to-trough decline	-21.26%	-19.73%	-1.53%
Max Drawdown (1Y) Largest decline over 1 year	-9.80%	-8.76%	-1.04%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-2.78%	-2.45%	-0.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.09%	1.95%	+0.14%

Volatility

PEPS vs. QQA - Volatility Comparison

The current volatility for Parametric Equity Plus ETF (PEPS) is 2.75%, while Invesco QQQ Income Advantage ETF (QQA) has a volatility of 2.91%. This indicates that PEPS experiences smaller price fluctuations and is considered to be less risky than QQA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PEPS	QQA	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.75%	2.91%	-0.16%
Volatility (6M) Calculated over the trailing 6-month period	9.82%	9.68%	+0.14%
Volatility (1Y) Calculated over the trailing 1-year period	13.05%	12.61%	+0.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.32%	18.29%	+0.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.32%	18.29%	+0.03%

PEPS vs. QQA - Expense Ratio Comparison

PEPS has a 0.10% expense ratio, which is lower than QQA's 0.29% expense ratio.

Dividends

PEPS vs. QQA - Dividend Comparison

PEPS's dividend yield for the trailing twelve months is around 0.88%, less than QQA's 9.28% yield.

Position	TTM	2025	2024
PEPS Parametric Equity Plus ETF	0.88%	1.00%	0.17%
QQA Invesco QQQ Income Advantage ETF	9.28%	9.78%	4.29%

Frequently Asked Questions

Can I hold both PEPS and QQA in my portfolio?

With a correlation of 0.93, PEPS and QQA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, PEPS or QQA?

QQA has higher volatility (2.91%) compared to PEPS (2.75%). In terms of maximum drawdown, PEPS dropped -21.26% vs QQA's -19.73%.

Which ETF is better, PEPS or QQA?

On 1-year performance, PEPS leads with 33.38% vs 33.20% for QQA. On fees, PEPS is cheaper at 0.10% per year. On volatility, PEPS has been the lower-risk option at 2.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PEPS or QQA?

Over the 1-year period, PEPS has performed better with a 33.38% return vs 33.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PEPS or QQA?

PEPS is cheaper with a 0.10% expense ratio, compared with 0.29% for QQA.

Which ETF pays a higher dividend yield, PEPS or QQA?

QQA has the higher dividend yield at 9.28%, compared with 0.88% for PEPS.

What is the main difference between PEPS and QQA?

They also come from different issuers: Parametric and Invesco. Their fees differ too: 0.10% for PEPS and 0.29% for QQA.

Which has better risk-adjusted returns?

QQA currently has the higher Sharpe Ratio (2.65 vs 2.57), 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.