BKEM vs QQQ
BNY Mellon Emerging Markets Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
BKEM has a lower expense ratio. QQQ delivered stronger 1-year returns. BKEM offers more diversification with 1,795 holdings.
Side-by-Side Comparison
| Metric | BKEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.11% | 0.18% | |
| AUM | $91M | $496.3B | |
| Dividend Yield | 3.85% | 0.44% | |
| Holdings | 1,795 | 108 | |
| YTD Return | -59.73% | +16.64% | |
| 1Y Return | -54.32% | +27.27% | |
| 3Y Return (annualized) | -14.96% | +25.96% | |
| 5Y Return (annualized) | -12.75% | +14.54% | |
| Volatility (annualized) | 32.3% | 30.6% | |
| Max Drawdown | -71.3% | -83.0% | |
| Fund Family | BNY Mellon Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 22, 2020 | Mar 10, 1999 |
BKEM vs QQQ Performance
BNY Mellon Emerging Markets Equity ETF (BKEM) is a ETF from BNY Mellon Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BKEM returned -54.32% while QQQ returned +27.27%. Year to date, BKEM is down 59.73% versus a gain of 16.64% for QQQ.
Over three years, BKEM compounded at -14.96% per year against +25.96% for QQQ; over five years the annualized figures are -12.75% and +14.54% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs -5.36%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BKEM has been the more volatile fund, with annualized monthly volatility of 32.3% compared with 30.6% for QQQ. 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 -71.3% for BKEM 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BKEM charges 0.11% per year while QQQ charges 0.18%. On a $10,000 position that is $11 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, BKEM currently yields 3.85% against 0.44% for QQQ.
Holdings Overlap
BKEM and QQQ share 1 holdings out of 1388 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 BKEM | Weight in QQQ | Difference |
|---|---|---|---|
| PDD:IE | 0.68% | 0.27% | 0.41% |
Frequently Asked Questions
Which is cheaper, BKEM or QQQ?
BKEM has an expense ratio of 0.11% while QQQ charges 0.18%. BKEM is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, BKEM or QQQ?
Over the past year BKEM returned -54.32% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), BKEM annualized -5.36% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, BKEM or QQQ?
BKEM has been the more volatile fund at 32.3% annualized versus 30.6% for QQQ. Worst drawdown: BKEM -71.3% vs QQQ -83.0%.
Should I hold both BKEM and QQQ?
BKEM and QQQ have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BKEM and QQQ?
BKEM and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 1388 unique securities.
Which pays a higher dividend, BKEM or QQQ?
BKEM yields 3.85% while QQQ yields 0.44%, so BKEM currently pays the higher dividend yield.
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