PRMTX vs. QQQ

Last updated Aug 1, 2026

PRMTX (T. Rowe Price Communications & Technology Fund) and QQQ (Invesco QQQ ETF) are both funds - PRMTX is a Communications Equities fund tracking the MSCI World IMI Communication Services 10/40 Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, PRMTX returned 13.94%/yr vs 20.44%/yr for QQQ. Their correlation of 0.86 means they have usually moved in the same direction. PRMTX charges 0.77%/yr vs 0.18%/yr for QQQ.

Performance

PRMTX vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Communications & Technology Fund (PRMTX) 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, PRMTX achieves a -5.92% return, which is significantly lower than QQQ's 12.26% return. Over the past 10 years, PRMTX has underperformed QQQ with an annualized return of 13.94%, while QQQ has yielded a comparatively higher 20.44% annualized return.

PRMTX

• 1D: 0.85%
• 1M: -5.00%
• 6M: -4.16%
• YTD: -5.92%
• 1Y: -6.58%
• 3Y*: 17.24%
• 5Y*: 3.71%
• 10Y*: 13.94%
• ALL TIME*: 14.50%

QQQ

• 1D: 0.65%
• 1M: -3.45%
• 6M: 10.89%
• YTD: 12.26%
• 1Y: 24.81%
• 3Y*: 22.29%
• 5Y*: 14.23%
• 10Y*: 20.44%
• ALL TIME*: 10.64%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
PRMTX T. Rowe Price Communications & Technology Fund	$0.00	$0.00	$0.00
QQQ Invesco QQQ ETF	$30.32B	$28.40B	$31.45B

PRMTX vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PRMTX T. Rowe Price Communications & Technology Fund	-5.92%	6.86%	48.75%	39.30%	-40.90%	9.81%	53.69%	35.69%	-1.85%	33.00%
QQQ Invesco QQQ ETF	12.26%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between PRMTX and QQQ is 0.81, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.81
Correlation (3Y) Balances recent behavior with more history.	0.85
Correlation (5Y) Shows whether the relationship held over a longer period.	0.90
Correlation (10Y) Provides a long-term view across more market conditions.	0.90
Correlation (All Time) Calculated using the full available price history since Mar 10, 1999	0.86

The correlation between PRMTX and QQQ has been stable across timeframes, ranging from 0.81 to 0.90 - a consistent structural relationship.

Return for Risk

PRMTX vs. QQQ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

PRMTX

PRMTX Risk / Return Rank: 1
PRMTX Sharpe Ratio Rank: 1
PRMTX Sortino Ratio Rank: 1
PRMTX Omega Ratio Rank: 2
PRMTX Calmar Ratio Rank: 1
PRMTX Martin Ratio Rank: 1

QQQ

QQQ Risk / Return Rank: 49
QQQ Sharpe Ratio Rank: 47
QQQ Sortino Ratio Rank: 46
QQQ Omega Ratio Rank: 45
QQQ Calmar Ratio Rank: 53
QQQ Martin Ratio Rank: 52

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

PRMTX vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Communications & Technology Fund (PRMTX) 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.

	PRMTX	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	-0.46	1.16	-1.62
Sortino ratio: Return per unit of downside risk	-0.53	1.65	-2.18
Omega ratio: Gain probability vs. loss probability	0.94	1.21	-0.27
Calmar ratio: Return relative to maximum drawdown	-0.43	1.88	-2.30
Martin ratio: Return relative to average drawdown	-0.92	6.00	-6.91

PRMTX vs. QQQ - Sharpe Ratio Comparison

The current PRMTX Sharpe Ratio is -0.46, which is lower than the QQQ Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of PRMTX 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

PRMTX vs. QQQ - Drawdown Comparison

The maximum PRMTX drawdown since its inception was -66.30%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for PRMTX and QQQ.

Drawdown Indicators

	PRMTX	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-66.30%	-82.97%	+16.67%
Max Drawdown (1Y) Largest decline over 1 year	-17.29%	-11.96%	-5.33%
Max Drawdown (3Y) Largest decline over 3 years	-20.69%	-22.77%	+2.08%
Max Drawdown (5Y) Largest decline over 5 years	-47.17%	-35.12%	-12.05%
Max Drawdown (10Y) Largest decline over 10 years	-47.17%	-35.12%	-12.05%
Current Drawdown Current decline from peak	-13.34%	-7.69%	-5.65%
Average Drawdown Average peak-to-trough decline	-13.92%	-32.62%	+18.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.03%	3.74%	+4.29%

Volatility

PRMTX vs. QQQ - Volatility Comparison

The current volatility for T. Rowe Price Communications & Technology Fund (PRMTX) is 5.73%, while Invesco QQQ ETF (QQQ) has a volatility of 6.87%. This indicates that PRMTX 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

	PRMTX	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	6.87%	-1.14%
Volatility (6M) Calculated over the trailing 6-month period	13.46%	16.08%	-2.62%
Volatility (1Y) Calculated over the trailing 1-year period	16.16%	19.38%	-3.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.79%	22.90%	-1.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.99%	22.50%	-1.51%

PRMTX vs. QQQ - Expense Ratio Comparison

PRMTX has a 0.77% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

PRMTX vs. QQQ - Dividend Comparison

PRMTX's dividend yield for the trailing twelve months is around 26.81%, more than QQQ's 0.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PRMTX T. Rowe Price Communications & Technology Fund	26.81%	25.23%	14.78%	7.74%	17.50%	8.35%	5.29%	2.45%	1.28%	2.35%	2.24%	3.20%
QQQ Invesco QQQ ETF	0.44%	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 PRMTX and QQQ in my portfolio?

PRMTX and QQQ have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PRMTX or QQQ?

QQQ has higher volatility (6.87%) compared to PRMTX (5.73%). In terms of maximum drawdown, PRMTX dropped -66.30% vs QQQ's -82.97%.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (1.16 vs -0.46), 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.