PSET vs. QQQ

Last updated Aug 2, 2026

PSET (Principal Quality ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - PSET is a Quality Factor fund tracking the NASDAQ US Price Setters, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, PSET returned 12.71%/yr vs 20.44%/yr for QQQ. Their 0.64 correlation means they have sometimes moved together and sometimes differently. PSET charges 0.15%/yr vs 0.18%/yr for QQQ.

Performance

PSET vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Quality ETF (PSET) 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, PSET achieves a 3.11% return, which is significantly lower than QQQ's 12.26% return. Over the past 10 years, PSET has underperformed QQQ with an annualized return of 12.71%, while QQQ has yielded a comparatively higher 20.44% annualized return.

PSET

• 1D: 0.66%
• 1M: 2.60%
• 6M: 3.83%
• YTD: 3.11%
• 1Y: 7.37%
• 3Y*: 11.34%
• 5Y*: 8.16%
• 10Y*: 12.71%
• ALL TIME*: 12.92%

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)
PSET Principal Quality ETF	$114.12K	$93.60K	$180.40K
QQQ Invesco QQQ ETF	$30.32B	$28.40B	$31.45B

PSET vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSET Principal Quality ETF	3.11%	7.27%	17.65%	24.07%	-16.52%	29.59%	16.20%	34.85%	-2.29%	24.63%
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 PSET and QQQ is 0.73, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.73
Correlation (3Y) Balances recent behavior with more history.	0.85
Correlation (5Y) Shows whether the relationship held over a longer period.	0.85
Correlation (10Y) Provides a long-term view across more market conditions.	0.66
Correlation (All Time) Calculated using the full available price history since Mar 22, 2016	0.64

The correlation between PSET and QQQ shifts across timeframes, from 0.64 (all time) to 0.85 (5 years), reflecting how their relationship changes across market environments.

PSET vs. QQQ - Sectors Allocation Comparison

Sectors	PSET	QQQ
Technology	37.4%	60.9%
Industrials	20.5%	2.7%
Financial Services	13.9%	0.2%
Healthcare	10.9%	3.6%
Communication Services	6.2%	13.1%
Consumer Cyclical	5.0%	10.7%
Basic Materials	3.7%	1.0%
Energy	1.2%	0.5%
Consumer Defensive	1.1%	6.3%
Real Estate	-	0.1%
Utilities	-	1.1%

Return for Risk

PSET vs. QQQ — Risk / Return Rank

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

PSET

PSET Risk / Return Rank: 19
PSET Sharpe Ratio Rank: 20
PSET Sortino Ratio Rank: 19
PSET Omega Ratio Rank: 19
PSET Calmar Ratio Rank: 18
PSET Martin Ratio Rank: 21

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.

PSET vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Quality ETF (PSET) 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.

	PSET	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	0.41	1.16	-0.75
Sortino ratio: Return per unit of downside risk	0.66	1.65	-0.99
Omega ratio: Gain probability vs. loss probability	1.08	1.21	-0.13
Calmar ratio: Return relative to maximum drawdown	0.42	1.88	-1.46
Martin ratio: Return relative to average drawdown	1.36	6.00	-4.64

PSET vs. QQQ - Sharpe Ratio Comparison

The current PSET Sharpe Ratio is 0.41, which is lower than the QQQ Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of PSET 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

PSET vs. QQQ - Drawdown Comparison

The maximum PSET drawdown since its inception was -34.74%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for PSET and QQQ.

Drawdown Indicators

	PSET	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-34.74%	-82.97%	+48.23%
Max Drawdown (1Y) Largest decline over 1 year	-12.94%	-11.96%	-0.98%
Max Drawdown (3Y) Largest decline over 3 years	-21.96%	-22.77%	+0.81%
Max Drawdown (5Y) Largest decline over 5 years	-25.61%	-35.12%	+9.51%
Max Drawdown (10Y) Largest decline over 10 years	-34.74%	-35.12%	+0.38%
Current Drawdown Current decline from peak	0.00%	-7.69%	+7.69%
Average Drawdown Average peak-to-trough decline	-4.55%	-32.62%	+28.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.95%	3.74%	+0.21%

Volatility

PSET vs. QQQ - Volatility Comparison

The current volatility for Principal Quality ETF (PSET) is 3.22%, while Invesco QQQ ETF (QQQ) has a volatility of 6.87%. This indicates that PSET 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

	PSET	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.22%	6.87%	-3.65%
Volatility (6M) Calculated over the trailing 6-month period	10.10%	16.08%	-5.98%
Volatility (1Y) Calculated over the trailing 1-year period	13.09%	19.38%	-6.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.60%	22.90%	-5.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.11%	22.50%	-4.39%

PSET vs. QQQ - Expense Ratio Comparison

PSET has a 0.15% expense ratio, which is lower than QQQ's 0.18% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

PSET vs. QQQ - Dividend Comparison

PSET's dividend yield for the trailing twelve months is around 0.69%, more than QQQ's 0.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSET Principal Quality ETF	0.69%	0.59%	0.69%	0.85%	1.47%	0.89%	1.09%	1.52%	1.33%	1.02%	1.26%	0.00%
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 PSET and QQQ in my portfolio?

PSET and QQQ have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSET or QQQ?

QQQ has higher volatility (6.87%) compared to PSET (3.22%). In terms of maximum drawdown, PSET dropped -34.74% vs QQQ's -82.97%.

Which ETF is better, PSET or QQQ?

On 10-year performance, QQQ leads with 20.44% vs 12.71% for PSET. On fees, PSET is cheaper at 0.15% per year. On volatility, PSET has been the lower-risk option at 3.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSET or QQQ?

Over the 10-year period, QQQ has performed better with a 20.44% return vs 12.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSET or QQQ?

PSET is cheaper with a 0.15% expense ratio, compared with 0.18% for QQQ.

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

PSET has the higher dividend yield at 0.69%, compared with 0.44% for QQQ.

What is the main difference between PSET and QQQ?

PSET is categorized as Quality Factor, while QQQ is Nasdaq-100. PSET tracks NASDAQ US Price Setters, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: Principal and Invesco. Their fees differ too: 0.15% for PSET and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (1.16 vs 0.41), 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.