DEM vs QQQ
WisdomTree Emerging Markets High Dividend Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. DEM offers more diversification with 518 holdings.
Side-by-Side Comparison
| Metric | DEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.18% | |
| AUM | $4.1B | $496.3B | |
| Dividend Yield | 4.19% | 0.44% | |
| Holdings | 518 | 108 | |
| YTD Return | +17.52% | +16.23% | |
| 1Y Return | +23.92% | +26.23% | |
| 3Y Return (annualized) | +17.92% | +25.75% | |
| 5Y Return (annualized) | +10.46% | +14.78% | |
| Volatility (annualized) | 19.2% | 30.6% | |
| Max Drawdown | -57.0% | -83.0% | |
| Fund Family | WisdomTree Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2007 | Mar 10, 1999 |
DEM vs QQQ Performance
WisdomTree Emerging Markets High Dividend Fund (DEM) is a ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DEM returned +23.92% while QQQ returned +26.23%. Year to date, DEM is up 17.52% versus a gain of 16.23% for QQQ.
Over three years, DEM compounded at +17.92% per year against +25.75% for QQQ; over five years the annualized figures are +10.46% and +14.78% respectively. Across the full 19-year window we track, QQQ has the edge at +13.02% annualized vs +1.78%. 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 19.2% for DEM. 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 -57.0% for DEM 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DEM charges 0.63% per year while QQQ charges 0.18%. On a $10,000 position that is $63 vs $18 annually, a gap of $45 per year that compounds over a long holding period. On income, DEM currently yields 4.19% against 0.44% for QQQ.
Holdings Overlap
DEM and QQQ share 0 holdings out of 603 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, DEM or QQQ?
DEM has an expense ratio of 0.63% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, DEM or QQQ?
Over the past year DEM returned +23.92% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), DEM annualized +1.78% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, DEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.2% for DEM. Worst drawdown: DEM -57.0% vs QQQ -83.0%.
Should I hold both DEM and QQQ?
DEM and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DEM and QQQ?
DEM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 603 unique securities.
Which pays a higher dividend, DEM or QQQ?
DEM yields 4.19% while QQQ yields 0.44%, so DEM currently pays the higher dividend yield.
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