EMHY vs QQQ
iShares JP Morgan Emerging Market High Yield Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. EMHY offers more diversification with 684 holdings.
Side-by-Side Comparison
| Metric | EMHY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $642M | $496.3B | |
| Dividend Yield | 6.49% | 0.44% | |
| Holdings | 684 | 108 | |
| YTD Return | -0.24% | +16.64% | |
| 1Y Return | +4.52% | +27.27% | |
| 3Y Return (annualized) | +11.18% | +25.96% | |
| 5Y Return (annualized) | +3.56% | +14.54% | |
| Volatility (annualized) | 9.9% | 30.6% | |
| Max Drawdown | -58.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2012 | Mar 10, 1999 |
EMHY vs QQQ Performance
iShares JP Morgan Emerging Market High Yield Bond ETF (EMHY) 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 EMHY returned +4.52% while QQQ returned +27.27%. Year to date, EMHY is down 0.24% versus a gain of 16.64% for QQQ.
Over three years, EMHY compounded at +11.18% per year against +25.96% for QQQ; over five years the annualized figures are +3.56% and +14.54% respectively. Across the full 14-year window we track, QQQ has the edge at +13.03% annualized vs +4.55%. 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 9.9% for EMHY. 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 -58.8% for EMHY 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
EMHY charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, EMHY currently yields 6.49% against 0.44% for QQQ.
Holdings Overlap
EMHY and QQQ share 0 holdings out of 239 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, EMHY or QQQ?
EMHY has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, EMHY or QQQ?
Over the past year EMHY returned +4.52% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), EMHY annualized +4.55% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, EMHY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.9% for EMHY. Worst drawdown: EMHY -58.8% vs QQQ -83.0%.
Should I hold both EMHY and QQQ?
EMHY 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 EMHY and QQQ?
EMHY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 239 unique securities.
Which pays a higher dividend, EMHY or QQQ?
EMHY yields 6.49% while QQQ yields 0.44%, so EMHY currently pays the higher dividend yield.
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