DBEM vs QQQ

DBEM vs QQQ

Which is better, DBEM or QQQ?

Large Cap Blend against Large Cap Growth.

QQQ has a lower expense ratio. DBEM led over 1Y, QQQ over 3Y, 5Y and the full window. DBEM is less concentrated, with 36.9% of the fund in its ten largest positions against 46.5%.

Lower Fees: QQQHigher Returns: splitLess Concentrated: DBEM

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricDBEMQQQ
Expense Ratio0.66%0.18%Best
AUM$110M$483.5B
Dividend Yield2.13%0.44%
Holdings1,174107
YTD Return+20.12%Best+15.86%
1Y Return+34.31%Best+22.63%
3Y Return (annualized)+22.78%+24.15%Best
5Y Return (annualized)+9.35%+14.16%Best
Volatility (annualized)21.7%17.5%Best
Max Drawdown-51.7%-35.1%Best
$10,000 over 5 years$15,635$19,390Best
Top 10 Weight36.9%Best46.5%
Fund FamilyXtrackers ETFsInvesco (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Growth
InceptionJun 9, 2011Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: Jun 9, 2011 to Sep 10, 2026 (15.3 years).

DBEM vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

DBEM vs QQQ Performance

Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM) is an ETF from Xtrackers ETFs and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DBEM returned +34.31% while QQQ returned +22.63%. Year to date, DBEM is up 20.12% versus a gain of 15.86% for QQQ.

Over three years, DBEM compounded at +22.78% per year against +24.15% for QQQ; over five years the annualized figures are +9.35% and +14.16% respectively. Across the full 15-year window we track, QQQ has the edge at +18.42% annualized vs +3.72%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DBEM has been the more volatile fund, with annualized monthly volatility of 21.7% compared with 17.5% 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 -51.7% for DBEM and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.37. They move together some of the time, and apart the rest.

Fees and Cost Over Time

DBEM charges 0.66% per year while QQQ charges 0.18%. On a $10,000 position that is $66 vs $18 annually, a gap of $48 per year that compounds over a long holding period. On income, DBEM currently yields 2.13% against 0.44% for QQQ.

Holdings Overlap

DBEM already in QQQ0.4%
QQQ already in DBEM0.5%

0.4% of DBEM's money is in holdings QQQ also owns. 0.5% of QQQ's money is in holdings DBEM also owns.

We cannot see either book well enough to say how much of this pair is duplicated.

2 positions in common, counted across the 1,153 positions we hold weights for in DBEM and 102 in QQQ, against full books of 1,174 and 107.

What only one of them owns

Our book lists 94 positions for QQQ that do not appear in our book for DBEM (96.8% of the fund), and 14 for DBEM that do not appear in QQQ (0.7%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in DBEMWeight in QQQDifference
PDD:IEPdd Holdings Inc0.40%0.27%0.13%
YNDXYandex Nv Ord Eur.01 Cl A Nasdaq Stock Exchange0.00%0.21%0.21%

You are not choosing between two funds in isolation.

Whichever of DBEM and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

DBEMQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, DBEM or QQQ?

DBEM has an expense ratio of 0.66% while QQQ charges 0.18%. QQQ is the cheaper option, by $48 a year on a $10,000 investment.

Which performed better, DBEM or QQQ?

Over the past year DBEM returned +34.31% vs +22.63% for QQQ, so DBEM leads on 1-year performance. Over the longest common window we track (15 years), DBEM annualized +3.72% vs +18.42% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, DBEM or QQQ?

DBEM has been the more volatile fund at 21.7% annualized versus 17.5% for QQQ. Worst drawdown: DBEM -51.7% vs QQQ -35.1%.

Should I hold both DBEM and QQQ?

DBEM and QQQ have a monthly-return correlation of 0.37, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, DBEM or QQQ?

DBEM yields 2.13% while QQQ yields 0.44%, so DBEM currently pays the higher dividend yield.

Is QQQ better than DBEM?

QQQ has a lower expense ratio. DBEM led over 1Y, QQQ over 3Y, 5Y and the full window. DBEM is less concentrated, with 36.9% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.