EEMS vs QQQ
Ishares MSCI Emerging Markets Small Cap ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. EEMS offers more diversification with 1,875 holdings.
Side-by-Side Comparison
| Metric | EEMS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.18% | |
| AUM | $357M | $455.8B | |
| Dividend Yield | 2.81% | 0.41% | |
| Holdings | 1,875 | 108 | |
| YTD Return | +11.42% | +19.68% | |
| 1Y Return | +18.47% | +26.75% | |
| 3Y Return (annualized) | +14.74% | +26.25% | |
| 5Y Return (annualized) | +7.09% | +15.39% | |
| Volatility (annualized) | 17.4% | 30.6% | |
| Max Drawdown | -51.7% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 16, 2011 | Mar 10, 1999 |
EEMS vs QQQ Performance
Ishares MSCI Emerging Markets Small Cap ETF (EEMS) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EEMS returned +18.47% while QQQ returned +26.75%. Year to date, EEMS is up 11.42% versus a gain of 19.68% for QQQ.
Over three years, EEMS compounded at +14.74% per year against +26.25% for QQQ; over five years the annualized figures are +7.09% and +15.39% respectively. Across the full 15-year window we track, QQQ has the edge at +13.15% annualized vs +3.86%. 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 17.4% for EEMS. 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 EEMS 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EEMS charges 0.73% per year while QQQ charges 0.18%. On a $10,000 position that is $73 vs $18 annually, a gap of $55 per year that compounds over a long holding period. On income, EEMS currently yields 2.81% against 0.41% for QQQ.
Holdings Overlap
EEMS and QQQ share 0 holdings out of 1573 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, EEMS or QQQ?
EEMS has an expense ratio of 0.73% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $55 per year of difference.
Which performed better, EEMS or QQQ?
Over the past year EEMS returned +18.47% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), EEMS annualized +3.86% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, EEMS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.4% for EEMS. Worst drawdown: EEMS -51.7% vs QQQ -83.0%.
Should I hold both EEMS and QQQ?
EEMS and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EEMS and QQQ?
EEMS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1573 unique securities.
Which pays a higher dividend, EEMS or QQQ?
EEMS yields 2.81% while QQQ yields 0.41%, so EEMS currently pays the higher dividend yield.
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