EEM vs QQQ
iShares MSCI Emerging Markets ETF vs Invesco QQQ Trust, Series 1
Which is better, EEM or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. EEM led over 1Y, QQQ over 3Y, 5Y and the full window. EEM is less concentrated, with 37.3% of the fund in its ten largest positions against 46.5%.
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
| Metric | EEM | QQQ |
|---|---|---|
| Expense Ratio | 0.72% | 0.18%Best |
| AUM | $31.1B | $483.5B |
| Dividend Yield | 1.66% | 0.44% |
| Holdings | 1,224 | 107 |
| YTD Return | +23.02%Best | +21.22% |
| 1Y Return | +31.74%Best | +23.58% |
| 3Y Return (annualized) | +24.34% | +28.18%Best |
| 5Y Return (annualized) | +8.98% | +15.82%Best |
| Volatility (annualized) | 20.8% | 18.2%Best |
| Max Drawdown | -68.8% | -53.5%Best |
| $10,000 over 5 years | $15,372 | $20,841Best |
| Top 10 Weight | 37.3%Best | 46.5% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Apr 7, 2003 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Apr 11, 2003 to Sep 21, 2026 (23.4 years).
EEM 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 covers the 23.4 years both funds cover.
EEM vs QQQ Performance
iShares MSCI Emerging Markets ETF (EEM) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year EEM returned +31.74% while QQQ returned +23.58%. Year to date, EEM is up 23.02% versus a gain of 21.22% for QQQ.
Over three years, EEM compounded at +24.34% per year against +28.18% for QQQ; over five years the annualized figures are +8.98% and +15.82% respectively. Across the full 23-year window we track, QQQ has the edge at +15.61% annualized vs +8.67%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EEM has been the more volatile fund, with annualized monthly volatility of 20.8% compared with 18.2% 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 -68.8% for EEM and -53.5% 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EEM charges 0.72% per year while QQQ charges 0.18%. On a $10,000 position that is $72 vs $18 annually, a gap of $54 per year that compounds over a long holding period. On income, EEM currently yields 1.66% against 0.44% for QQQ.
Holdings Overlap
0.3% of EEM's money is in holdings QQQ also owns. 0.3% of QQQ's money is in holdings EEM also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 1,114 positions we hold weights for in EEM and 102 in QQQ, against full books of 1,224 and 107.
What only one of them owns
Our book lists 96 positions for QQQ that do not appear in our book for EEM (97.5% of the fund), and 15 for EEM that do not appear in QQQ (1.4%).
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
| Stock | Weight in EEM | Weight in QQQ | Difference |
|---|---|---|---|
| PDD:IEPdd Holdings Inc. | 0.35% | 0.27% | 0.08% |
You are not choosing between two funds in isolation.
Whichever of EEM and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, EEM or QQQ?
EEM has an expense ratio of 0.72% while QQQ charges 0.18%. QQQ is the cheaper option, by $54 a year on a $10,000 investment.
Which performed better, EEM or QQQ?
Over the past year EEM returned +31.74% vs +23.58% for QQQ, so EEM leads on 1-year performance. Over the longest common window we track (23 years), EEM annualized +8.67% vs +15.61% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, EEM or QQQ?
EEM has been the more volatile fund at 20.8% annualized versus 18.2% for QQQ. Worst drawdown: EEM -68.8% vs QQQ -53.5%.
Should I hold both EEM and QQQ?
EEM and QQQ have a monthly-return correlation of 0.70, 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, EEM or QQQ?
EEM yields 1.66% while QQQ yields 0.44%, so EEM currently pays the higher dividend yield.
Is QQQ better than EEM?
QQQ has a lower expense ratio. EEM led over 1Y, QQQ over 3Y, 5Y and the full window. EEM is less concentrated, with 37.3% 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.