PQDI vs. USMC

Last updated Jun 3, 2026

PQDI (Principal Spectrum Preferred and Income ETF) and USMC (Principal U.S. Mega-Cap ETF) are both exchange-traded funds - PQDI is a Preferred Stock/Convertible Bonds fund tracking the ICE BofA 7% Constrained DRD Eligible Preferred Securities Index, while USMC is a Large Cap Growth Equities fund tracking the Nasdaq US Mega Cap Select Leaders Index. Both are passively managed. Over the past 5 years, PQDI returned 3.30%/yr vs 15.68%/yr for USMC. At a 0.50 correlation, their price movements are largely independent. PQDI charges 0.60%/yr vs 0.12%/yr for USMC.

Performance

PQDI vs. USMC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Spectrum Preferred and Income ETF (PQDI) and Principal U.S. Mega-Cap ETF (USMC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PQDI achieves a 1.32% return, which is significantly lower than USMC's 9.11% return.

PQDI

• 1D: -0.18%
• 1M: 0.02%
• YTD: 1.32%
• 6M: 1.97%
• 1Y: 7.46%
• 3Y*: 9.11%
• 5Y*: 3.30%
• 10Y*: —

USMC

• 1D: 0.11%
• 1M: 5.62%
• YTD: 9.11%
• 6M: 8.87%
• 1Y: 24.67%
• 3Y*: 22.12%
• 5Y*: 15.68%
• 10Y*: —

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

PQDI vs. USMC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
PQDI Principal Spectrum Preferred and Income ETF	1.32%	8.46%	9.99%	6.24%	-9.61%	3.10%	9.81%
USMC Principal U.S. Mega-Cap ETF	9.11%	14.99%	29.82%	31.57%	-17.17%	26.30%	20.14%

Correlation

The correlation between PQDI and USMC is 0.56, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (All Time) Calculated using the full available price history since Jun 18, 2020	0.50

The correlation between PQDI and USMC has been stable across timeframes, ranging from 0.46 to 0.56 - a consistent structural relationship.

PQDI vs. USMC - Sectors Allocation Comparison

Sectors	PQDI	USMC
Financial Services	10.5%	19.6%
Communication Services	0.7%	14.7%
Basic Materials	-	-
Consumer Cyclical	-	8.4%
Consumer Defensive	-	9.6%
Energy	-	4.8%
Healthcare	-	8.1%
Industrials	-	5.6%
Real Estate	-	-
Technology	-	29.1%
Utilities	-	-

Return for Risk

PQDI vs. USMC — Risk / Return Rank

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

PQDI

PQDI Risk / Return Rank: 65
PQDI Sharpe Ratio Rank: 70
PQDI Sortino Ratio Rank: 74
PQDI Omega Ratio Rank: 83
PQDI Calmar Ratio Rank: 44
PQDI Martin Ratio Rank: 56

USMC

USMC Risk / Return Rank: 57
USMC Sharpe Ratio Rank: 62
USMC Sortino Ratio Rank: 63
USMC Omega Ratio Rank: 59
USMC Calmar Ratio Rank: 49
USMC Martin Ratio Rank: 54

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.

PQDI vs. USMC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Spectrum Preferred and Income ETF (PQDI) and Principal U.S. Mega-Cap ETF (USMC). 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.

	PQDI	USMC	Difference
Sharpe ratio Return per unit of total volatility	2.33	2.10	+0.23
Sortino ratio Return per unit of downside risk	3.40	2.95	+0.44
Omega ratio Gain probability vs. loss probability	1.51	1.37	+0.14
Calmar ratio Return relative to maximum drawdown	2.23	2.45	-0.22
Martin ratio Return relative to average drawdown	10.03	9.38	+0.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PQDI vs. USMC - Sharpe Ratio Comparison

The current PQDI Sharpe Ratio is 2.33, which is comparable to the USMC Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of PQDI and USMC, 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

	PQDI	USMC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.33	2.10	+0.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.71	0.96	-0.26
Sharpe Ratio (All Time) Calculated using the full available price history	1.03	0.84	+0.19

Drawdowns

PQDI vs. USMC - Drawdown Comparison

The maximum PQDI drawdown since its inception was -17.41%, smaller than the maximum USMC drawdown of -29.97%. Use the drawdown chart below to compare losses from any high point for PQDI and USMC.

Drawdown Indicators

	PQDI	USMC	Difference
Max Drawdown Largest peak-to-trough decline	-17.41%	-29.97%	+12.56%
Max Drawdown (1Y) Largest decline over 1 year	-3.31%	-10.30%	+6.99%
Max Drawdown (3Y) Largest decline over 3 years	-3.31%	-19.12%	+15.81%
Max Drawdown (5Y) Largest decline over 5 years	-17.41%	-24.09%	+6.68%
Current Drawdown Current decline from peak	-0.50%	0.00%	-0.50%
Average Drawdown Average peak-to-trough decline	-3.51%	-4.41%	+0.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.74%	2.69%	-1.95%

Volatility

PQDI vs. USMC - Volatility Comparison

The current volatility for Principal Spectrum Preferred and Income ETF (PQDI) is 1.16%, while Principal U.S. Mega-Cap ETF (USMC) has a volatility of 2.49%. This indicates that PQDI experiences smaller price fluctuations and is considered to be less risky than USMC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PQDI	USMC	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.16%	2.49%	-1.33%
Volatility (6M) Calculated over the trailing 6-month period	2.81%	8.69%	-5.88%
Volatility (1Y) Calculated over the trailing 1-year period	3.22%	11.81%	-8.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.69%	16.36%	-11.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.56%	18.25%	-13.69%

PQDI vs. USMC - Expense Ratio Comparison

PQDI has a 0.60% expense ratio, which is higher than USMC's 0.12% expense ratio.

Dividends

PQDI vs. USMC - Dividend Comparison

PQDI's dividend yield for the trailing twelve months is around 5.46%, more than USMC's 0.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
PQDI Principal Spectrum Preferred and Income ETF	5.46%	5.02%	4.93%	5.35%	5.60%	5.21%	2.69%	0.00%	0.00%	0.00%
USMC Principal U.S. Mega-Cap ETF	0.74%	0.79%	1.04%	1.35%	1.78%	1.53%	1.55%	2.01%	2.28%	0.24%

Frequently Asked Questions

Can I hold both PQDI and USMC in my portfolio?

PQDI and USMC have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PQDI or USMC?

USMC has higher volatility (2.49%) compared to PQDI (1.16%). In terms of maximum drawdown, PQDI dropped -17.41% vs USMC's -29.97%.

Which ETF is better, PQDI or USMC?

On 5-year performance, USMC leads with 15.68% vs 3.30% for PQDI. On fees, USMC is cheaper at 0.12% per year. On volatility, PQDI has been the lower-risk option at 1.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PQDI or USMC?

Over the 5-year period, USMC has performed better with a 15.68% return vs 3.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PQDI or USMC?

USMC is cheaper with a 0.12% expense ratio, compared with 0.60% for PQDI.

Which ETF pays a higher dividend yield, PQDI or USMC?

PQDI has the higher dividend yield at 5.46%, compared with 0.74% for USMC.

What is the main difference between PQDI and USMC?

PQDI is categorized as Preferred Stock/Convertible Bonds, while USMC is Large Cap Growth Equities. PQDI tracks ICE BofA 7% Constrained DRD Eligible Preferred Securities Index, while USMC tracks Nasdaq US Mega Cap Select Leaders Index. Their fees differ too: 0.60% for PQDI and 0.12% for USMC.

Which has better risk-adjusted returns?

PQDI currently has the higher Sharpe Ratio (2.33 vs 2.10), 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.