EMBD vs QQQ
Global X Emerging Markets Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | EMBD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $249M | $455.8B | |
| Dividend Yield | 5.65% | 0.41% | |
| Holdings | 234 | 108 | |
| YTD Return | +1.45% | +17.46% | |
| 1Y Return | +6.15% | +26.02% | |
| 3Y Return (annualized) | +9.09% | +25.51% | |
| 5Y Return (annualized) | +2.81% | +15.12% | |
| Volatility (annualized) | 8.8% | 30.6% | |
| Max Drawdown | -25.0% | -83.0% | |
| Fund Family | Global X by mirae Asset | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 1, 2020 | Mar 10, 1999 |
EMBD vs QQQ Performance
Global X Emerging Markets Bond ETF (EMBD) is a ETF from Global X by mirae Asset and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EMBD returned +6.15% while QQQ returned +26.02%. Year to date, EMBD is up 1.45% versus a gain of 17.46% for QQQ.
Over three years, EMBD compounded at +9.09% per year against +25.51% for QQQ; over five years the annualized figures are +2.81% and +15.12% respectively. Across the full 6-year window we track, QQQ has the edge at +13.08% annualized vs +3.28%. 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 8.8% for EMBD. 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 -25.0% for EMBD 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMBD 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, EMBD currently yields 5.65% against 0.41% for QQQ.
Holdings Overlap
EMBD and QQQ share 0 holdings out of 180 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, EMBD or QQQ?
EMBD 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, EMBD or QQQ?
Over the past year EMBD returned +6.15% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), EMBD annualized +3.28% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, EMBD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.8% for EMBD. Worst drawdown: EMBD -25.0% vs QQQ -83.0%.
Should I hold both EMBD and QQQ?
EMBD and QQQ have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMBD and QQQ?
EMBD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 180 unique securities.
Which pays a higher dividend, EMBD or QQQ?
EMBD yields 5.65% while QQQ yields 0.41%, so EMBD currently pays the higher dividend yield.
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