BEMB vs QQQ
iShares J.P. Morgan Broad USD Emerging Markets Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
BEMB has a lower expense ratio. QQQ delivered stronger 1-year returns. BEMB offers more diversification with 109 holdings.
Side-by-Side Comparison
| Metric | BEMB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $42M | $455.8B | |
| Dividend Yield | 6.07% | 0.41% | |
| Holdings | 259 | 108 | |
| YTD Return | -0.69% | +17.85% | |
| 1Y Return | +3.70% | +26.45% | |
| 3Y Return (annualized) | +7.45% | +26.07% | |
| 5Y Return (annualized) | - | +15.16% | |
| Volatility (annualized) | 6.0% | 30.6% | |
| Max Drawdown | -6.2% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 22, 2023 | Mar 10, 1999 |
BEMB vs QQQ Performance
iShares J.P. Morgan Broad USD Emerging Markets Bond ETF (BEMB) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BEMB returned +3.70% while QQQ returned +26.45%. Year to date, BEMB is down 0.69% versus a gain of 17.85% for QQQ.
Over three years, BEMB compounded at +7.45% per year against +26.07% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.09% annualized vs +7.35%. 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 6.0% for BEMB. 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 -6.2% for BEMB 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BEMB 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, BEMB currently yields 6.07% against 0.41% for QQQ.
Holdings Overlap
BEMB and QQQ share 0 holdings out of 212 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BEMB or QQQ?
BEMB has an expense ratio of 0.15% while QQQ charges 0.18%. BEMB is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, BEMB or QQQ?
Over the past year BEMB returned +3.70% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), BEMB annualized +7.35% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, BEMB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.0% for BEMB. Worst drawdown: BEMB -6.2% vs QQQ -83.0%.
Should I hold both BEMB and QQQ?
BEMB and QQQ have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BEMB and QQQ?
BEMB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 212 unique securities.
Which pays a higher dividend, BEMB or QQQ?
BEMB yields 6.07% while QQQ yields 0.41%, so BEMB currently pays the higher dividend yield.
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