EMDM vs QQQ
First Trust Bloomberg Emerging Market Democracies ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. EMDM delivered stronger 1-year returns. EMDM offers more diversification with 110 holdings.
Side-by-Side Comparison
| Metric | EMDM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $39M | $496.3B | |
| Dividend Yield | 2.89% | 0.44% | |
| Holdings | 110 | 108 | |
| YTD Return | +28.93% | +19.52% | |
| 1Y Return | +63.97% | +26.68% | |
| 3Y Return (annualized) | +30.92% | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 19.6% | 30.6% | |
| Max Drawdown | -18.8% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 2, 2023 | Mar 10, 1999 |
EMDM vs QQQ Performance
First Trust Bloomberg Emerging Market Democracies ETF (EMDM) is a ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EMDM returned +63.97% while QQQ returned +26.68%. Year to date, EMDM is up 28.93% versus a gain of 19.52% for QQQ.
Over three years, EMDM compounded at +30.92% per year against +26.64% for QQQ. Across the full 3-year window we track, EMDM has the edge at +27.18% annualized vs +13.14%. 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 19.6% for EMDM. 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 -18.8% for EMDM 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMDM charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, EMDM currently yields 2.89% against 0.44% for QQQ.
Holdings Overlap
EMDM and QQQ share 0 holdings out of 201 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, EMDM or QQQ?
EMDM has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, EMDM or QQQ?
Over the past year EMDM returned +63.97% vs +26.68% for QQQ, so EMDM leads on 1-year performance. Over the longest common window we track (3 years), EMDM annualized +27.18% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, EMDM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.6% for EMDM. Worst drawdown: EMDM -18.8% vs QQQ -83.0%.
Should I hold both EMDM and QQQ?
EMDM and QQQ have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMDM and QQQ?
EMDM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 201 unique securities.
Which pays a higher dividend, EMDM or QQQ?
EMDM yields 2.89% while QQQ yields 0.44%, so EMDM currently pays the higher dividend yield.
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