PRFZ vs. QQQ

Last updated Jun 24, 2026

PRFZ (Invesco FTSE RAFI US 1500 Small-Mid ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - PRFZ is a Small Cap Blend Equities fund tracking the FTSE RAFI US 1500 Small-Mid Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, PRFZ returned 12.16%/yr vs 22.07%/yr for QQQ. A 0.74 correlation means they provide meaningful diversification when combined. PRFZ charges 0.39%/yr vs 0.18%/yr for QQQ.

Performance

PRFZ vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco FTSE RAFI US 1500 Small-Mid ETF (PRFZ) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with PRFZ having a 16.06% return and QQQ slightly higher at 16.45%. Over the past 10 years, PRFZ has underperformed QQQ with an annualized return of 12.16%, while QQQ has yielded a comparatively higher 22.07% annualized return.

PRFZ

• 1D: -0.43%
• 1M: 3.82%
• YTD: 16.06%
• 6M: 13.71%
• 1Y: 34.11%
• 3Y*: 18.53%
• 5Y*: 8.31%
• 10Y*: 12.16%

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)

PRFZ vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PRFZ Invesco FTSE RAFI US 1500 Small-Mid ETF	16.06%	11.26%	12.68%	20.21%	-16.29%	28.26%	11.84%	21.91%	-11.43%	13.82%
QQQ Invesco QQQ ETF	16.45%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between PRFZ and QQQ is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Sep 20, 2006	0.74

The correlation between PRFZ and QQQ has been stable across timeframes, ranging from 0.64 to 0.74 - a consistent structural relationship.

PRFZ vs. QQQ - Sectors Allocation Comparison

Sectors	PRFZ	QQQ
Technology	19.6%	58.7%
Healthcare	16.8%	3.7%
Industrials	16.6%	2.6%
Financial Services	13.2%	0.2%
Consumer Cyclical	10.8%	11.4%
Real Estate	7.2%	0.1%
Energy	5.0%	0.5%
Basic Materials	3.5%	1.0%
Communication Services	2.9%	14.3%
Consumer Defensive	2.8%	6.4%
Utilities	1.5%	1.2%

Return for Risk

PRFZ vs. QQQ — Risk / Return Rank

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

PRFZ

PRFZ Risk / Return Rank: 62
PRFZ Sharpe Ratio Rank: 59
PRFZ Sortino Ratio Rank: 61
PRFZ Omega Ratio Rank: 54
PRFZ Calmar Ratio Rank: 70
PRFZ Martin Ratio Rank: 66

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.

PRFZ vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco FTSE RAFI US 1500 Small-Mid ETF (PRFZ) 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.

	PRFZ	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.88	1.95	-0.08
Sortino ratio: Return per unit of downside risk	2.68	2.57	+0.11
Omega ratio: Gain probability vs. loss probability	1.32	1.35	-0.03
Calmar ratio: Return relative to maximum drawdown	3.30	2.93	+0.37
Martin ratio: Return relative to average drawdown	11.37	10.86	+0.51

PRFZ vs. QQQ - Sharpe Ratio Comparison

The current PRFZ Sharpe Ratio is 1.88, which is comparable to the QQQ Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of PRFZ 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

PRFZ vs. QQQ - Drawdown Comparison

The maximum PRFZ drawdown since its inception was -62.41%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for PRFZ and QQQ.

Drawdown Indicators

	PRFZ	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-62.41%	-82.97%	+20.56%
Max Drawdown (1Y) Largest decline over 1 year	-10.38%	-11.96%	+1.58%
Max Drawdown (3Y) Largest decline over 3 years	-26.54%	-22.77%	-3.77%
Max Drawdown (5Y) Largest decline over 5 years	-26.58%	-35.12%	+8.54%
Max Drawdown (10Y) Largest decline over 10 years	-44.28%	-35.12%	-9.16%
Current Drawdown Current decline from peak	-0.43%	-4.25%	+3.82%
Average Drawdown Average peak-to-trough decline	-9.40%	-32.73%	+23.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.01%	3.22%	-0.21%

Volatility

PRFZ vs. QQQ - Volatility Comparison

The current volatility for Invesco FTSE RAFI US 1500 Small-Mid ETF (PRFZ) is 5.54%, while Invesco QQQ ETF (QQQ) has a volatility of 9.17%. This indicates that PRFZ 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

	PRFZ	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.54%	9.17%	-3.63%
Volatility (6M) Calculated over the trailing 6-month period	12.96%	14.57%	-1.61%
Volatility (1Y) Calculated over the trailing 1-year period	18.30%	17.96%	+0.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.35%	22.69%	-1.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.44%	22.42%	+0.02%

PRFZ vs. QQQ - Expense Ratio Comparison

PRFZ has a 0.39% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

PRFZ vs. QQQ - Dividend Comparison

PRFZ's dividend yield for the trailing twelve months is around 0.81%, more than QQQ's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PRFZ Invesco FTSE RAFI US 1500 Small-Mid ETF	0.81%	0.82%	1.45%	1.42%	1.33%	0.93%	0.91%	1.29%	1.37%	0.97%	1.31%	1.39%
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 PRFZ and QQQ in my portfolio?

PRFZ and QQQ have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PRFZ or QQQ?

QQQ has higher volatility (9.17%) compared to PRFZ (5.54%). In terms of maximum drawdown, PRFZ dropped -62.41% vs QQQ's -82.97%.

Which ETF is better, PRFZ or QQQ?

On 10-year performance, QQQ leads with 22.07% vs 12.16% for PRFZ. On fees, QQQ is cheaper at 0.18% per year. On volatility, PRFZ has been the lower-risk option at 5.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PRFZ or QQQ?

Over the 10-year period, QQQ has performed better with a 22.07% return vs 12.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PRFZ or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.39% for PRFZ.

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

PRFZ has the higher dividend yield at 0.81%, compared with 0.43% for QQQ.

What is the main difference between PRFZ and QQQ?

PRFZ is categorized as Small Cap Blend Equities, while QQQ is Nasdaq-100. PRFZ tracks FTSE RAFI US 1500 Small-Mid Index, while QQQ tracks NASDAQ-100 Index. Their fees differ too: 0.39% for PRFZ and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (1.95 vs 1.88), 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.