DBEM vs QQQ
Xtrackers MSCI Emerging Markets Hedged Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DBEM delivered stronger 1-year returns. DBEM offers more diversification with 1,175 holdings.
Side-by-Side Comparison
| Metric | DBEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.66% | 0.18% | |
| AUM | $109M | $496.3B | |
| Dividend Yield | 2.31% | 0.44% | |
| Holdings | 1,175 | 108 | |
| YTD Return | +19.40% | +17.07% | |
| 1Y Return | +37.58% | +26.39% | |
| 3Y Return (annualized) | +23.32% | +26.08% | |
| 5Y Return (annualized) | +10.19% | +15.18% | |
| Volatility (annualized) | 21.7% | 30.6% | |
| Max Drawdown | -51.7% | -83.0% | |
| Fund Family | Xtrackers ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 9, 2011 | Mar 10, 1999 |
DBEM vs QQQ Performance
Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM) is a ETF from Xtrackers ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DBEM returned +37.58% while QQQ returned +26.39%. Year to date, DBEM is up 19.40% versus a gain of 17.07% for QQQ.
Over three years, DBEM compounded at +23.32% per year against +26.08% for QQQ; over five years the annualized figures are +10.19% and +15.18% respectively. Across the full 15-year window we track, QQQ has the edge at +13.05% annualized vs +3.69%. 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 21.7% for DBEM. 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 -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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
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 2.31% against 0.44% for QQQ.
Holdings Overlap
DBEM and QQQ share 2 holdings out of 1254 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $48 per year of difference.
Which performed better, DBEM or QQQ?
Over the past year DBEM returned +37.58% vs +26.39% for QQQ, so DBEM leads on 1-year performance. Over the longest common window we track (15 years), DBEM annualized +3.69% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, DBEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.7% for DBEM. Worst drawdown: DBEM -51.7% vs QQQ -83.0%.
Should I hold both DBEM and QQQ?
DBEM and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DBEM and QQQ?
DBEM and QQQ share 2 common holdings with a 0.3% weight overlap. Combined, they hold 1254 unique securities.
Which pays a higher dividend, DBEM or QQQ?
DBEM yields 2.31% while QQQ yields 0.44%, so DBEM currently pays the higher dividend yield.
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