EMB vs QQQ
iShares J.P. Morgan USD Emerging Markets Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. EMB offers more diversification with 251 holdings.
Side-by-Side Comparison
| Metric | EMB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $14.7B | $455.8B | |
| Dividend Yield | 5.02% | 0.41% | |
| Holdings | 616 | 108 | |
| YTD Return | +1.07% | +17.85% | |
| 1Y Return | +6.26% | +26.45% | |
| 3Y Return (annualized) | +8.78% | +26.07% | |
| 5Y Return (annualized) | +1.67% | +15.16% | |
| Volatility (annualized) | 11.3% | 30.6% | |
| Max Drawdown | -36.4% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 17, 2007 | Mar 10, 1999 |
EMB vs QQQ Performance
iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) 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 EMB returned +6.26% while QQQ returned +26.45%. Year to date, EMB is up 1.07% versus a gain of 17.85% for QQQ.
Over three years, EMB compounded at +8.78% per year against +26.07% for QQQ; over five years the annualized figures are +1.67% and +15.16% respectively. Across the full 19-year window we track, QQQ has the edge at +13.09% annualized vs +1.09%. 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 11.3% for EMB. 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 -36.4% for EMB 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMB charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, EMB currently yields 5.02% against 0.41% for QQQ.
Holdings Overlap
EMB and QQQ share 0 holdings out of 354 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, EMB or QQQ?
EMB has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, EMB or QQQ?
Over the past year EMB returned +6.26% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), EMB annualized +1.09% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, EMB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.3% for EMB. Worst drawdown: EMB -36.4% vs QQQ -83.0%.
Should I hold both EMB and QQQ?
EMB and QQQ have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMB and QQQ?
EMB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 354 unique securities.
Which pays a higher dividend, EMB or QQQ?
EMB yields 5.02% while QQQ yields 0.41%, so EMB currently pays the higher dividend yield.
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