AVEM vs QQQ
Avantis Emerging Markets Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. AVEM delivered stronger 1-year returns. AVEM offers more diversification with 3,967 holdings.
Side-by-Side Comparison
| Metric | AVEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.33% | 0.18% | |
| AUM | $27.4B | $496.3B | |
| Dividend Yield | 1.98% | 0.44% | |
| Holdings | 3,967 | 108 | |
| YTD Return | +17.43% | +17.30% | |
| 1Y Return | +31.25% | +24.93% | |
| 3Y Return (annualized) | +23.80% | +26.19% | |
| 5Y Return (annualized) | +10.49% | +15.34% | |
| Volatility (annualized) | 18.8% | 30.6% | |
| Max Drawdown | -36.0% | -83.0% | |
| Fund Family | Avantis Investors | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 17, 2019 | Mar 10, 1999 |
AVEM vs QQQ Performance
Avantis Emerging Markets Equity ETF (AVEM) is a ETF from Avantis Investors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AVEM returned +31.25% while QQQ returned +24.93%. Year to date, AVEM is up 17.43% versus a gain of 17.30% for QQQ.
Over three years, AVEM compounded at +23.80% per year against +26.19% for QQQ; over five years the annualized figures are +10.49% and +15.34% respectively. Across the full 7-year window we track, QQQ has the edge at +13.06% annualized vs +11.69%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 18.8% for AVEM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -36.0% for AVEM and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AVEM charges 0.33% per year while QQQ charges 0.18%. On a $10,000 position that is $33 vs $18 annually, a gap of $15 per year that compounds over a long holding period. On income, AVEM currently yields 1.98% against 0.44% for QQQ.
Holdings Overlap
AVEM and QQQ share 1 holdings out of 1301 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in AVEM | Weight in QQQ | Difference |
|---|---|---|---|
| PDD:IE | 0.53% | 0.27% | 0.26% |
Frequently Asked Questions
Which is cheaper, AVEM or QQQ?
AVEM has an expense ratio of 0.33% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, AVEM or QQQ?
Over the past year AVEM returned +31.25% vs +24.93% for QQQ, so AVEM leads on 1-year performance. Over the longest common window we track (7 years), AVEM annualized +11.69% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, AVEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.8% for AVEM. Worst drawdown: AVEM -36.0% vs QQQ -83.0%.
Should I hold both AVEM and QQQ?
AVEM and QQQ have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVEM and QQQ?
AVEM and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 1301 unique securities.
Which pays a higher dividend, AVEM or QQQ?
AVEM yields 1.98% while QQQ yields 0.44%, so AVEM currently pays the higher dividend yield.
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