BBEM vs QQQ
BBEM vs QQQ
JPMorgan BetaBuilders Emerging Markets Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
BBEM has a lower expense ratio. BBEM delivered stronger 1-year returns. BBEM offers more diversification with 889 holdings.
Side-by-Side Comparison
| Metric | BBEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $748M | $455.8B | |
| Dividend Yield | 2.52% | 0.41% | |
| Holdings | 1,132 | 108 | |
| YTD Return | +15.82% | +18.20% | |
| 1Y Return | +32.69% | +27.63% | |
| 3Y Return (annualized) | +19.42% | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 15.1% | 30.6% | |
| Max Drawdown | -17.4% | -83.0% | |
| Fund Family | J.P. Morgan Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 10, 2023 | Mar 10, 1999 |
BBEM vs QQQ Performance
JPMorgan BetaBuilders Emerging Markets Equity ETF (BBEM) is a ETF from J.P. Morgan Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BBEM returned +32.69% while QQQ returned +27.63%. Year to date, BBEM is up 15.82% versus a gain of 18.20% for QQQ.
Over three years, BBEM compounded at +19.42% per year against +25.54% for QQQ. Across the full 3-year window we track, BBEM has the edge at +19.55% annualized vs +13.11%. 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 15.1% for BBEM. 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 -17.4% for BBEM 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BBEM charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, BBEM currently yields 2.52% against 0.41% for QQQ.
Holdings Overlap
BBEM and QQQ share 1 holdings out of 991 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 BBEM | Weight in QQQ | Difference |
|---|---|---|---|
| PDD | 0.71% | 0.25% | 0.46% |
Frequently Asked Questions
Which is cheaper, BBEM or QQQ?
BBEM has an expense ratio of 0.15% while QQQ charges 0.18%. BBEM is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, BBEM or QQQ?
Over the past year BBEM returned +32.69% vs +27.63% for QQQ, so BBEM leads on 1-year performance. Over the longest common window we track (3 years), BBEM annualized +19.55% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, BBEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.1% for BBEM. Worst drawdown: BBEM -17.4% vs QQQ -83.0%.
Should I hold both BBEM and QQQ?
BBEM and QQQ have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BBEM and QQQ?
BBEM and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 991 unique securities.
Which pays a higher dividend, BBEM or QQQ?
BBEM yields 2.52% while QQQ yields 0.41%, so BBEM currently pays the higher dividend yield.
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