DIEM vs QQQ
Franklin Emerging Market Core Dividend Tilt Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DIEM delivered stronger 1-year returns. DIEM offers more diversification with 604 holdings.
Side-by-Side Comparison
| Metric | DIEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.18% | |
| AUM | $93M | $496.3B | |
| Dividend Yield | 2.96% | 0.44% | |
| Holdings | 604 | 108 | |
| YTD Return | +24.87% | +15.47% | |
| 1Y Return | +39.17% | +24.44% | |
| 3Y Return (annualized) | +26.52% | +25.47% | |
| 5Y Return (annualized) | +11.80% | +14.22% | |
| Volatility (annualized) | 15.7% | 30.6% | |
| Max Drawdown | -44.4% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 1, 2016 | Mar 10, 1999 |
DIEM vs QQQ Performance
Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DIEM returned +39.17% while QQQ returned +24.44%. Year to date, DIEM is up 24.87% versus a gain of 15.47% for QQQ.
Over three years, DIEM compounded at +26.52% per year against +25.47% for QQQ; over five years the annualized figures are +11.80% and +14.22% respectively. Across the full 10-year window we track, QQQ has the edge at +12.99% annualized vs +7.25%. 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 15.7% for DIEM. 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 -44.4% for DIEM 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DIEM charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, DIEM currently yields 2.96% against 0.44% for QQQ.
Holdings Overlap
DIEM and QQQ share 0 holdings out of 609 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, DIEM or QQQ?
DIEM has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, DIEM or QQQ?
Over the past year DIEM returned +39.17% vs +24.44% for QQQ, so DIEM leads on 1-year performance. Over the longest common window we track (10 years), DIEM annualized +7.25% vs +12.99% for QQQ. Past performance does not guarantee future results.
Which is riskier, DIEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.7% for DIEM. Worst drawdown: DIEM -44.4% vs QQQ -83.0%.
Should I hold both DIEM and QQQ?
DIEM and QQQ have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DIEM and QQQ?
DIEM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 609 unique securities.
Which pays a higher dividend, DIEM or QQQ?
DIEM yields 2.96% while QQQ yields 0.44%, so DIEM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.