EMLC vs QQQ
VanEck JP Morgan EM Local Currency Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. EMLC offers more diversification with 524 holdings.
Side-by-Side Comparison
| Metric | EMLC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.18% | |
| AUM | $4.8B | $496.3B | |
| Dividend Yield | 6.30% | 0.44% | |
| Holdings | 524 | 108 | |
| YTD Return | +3.58% | +16.64% | |
| 1Y Return | +9.23% | +27.27% | |
| 3Y Return (annualized) | +7.49% | +25.96% | |
| 5Y Return (annualized) | +2.46% | +14.54% | |
| Volatility (annualized) | 11.2% | 30.6% | |
| Max Drawdown | -56.3% | -83.0% | |
| Fund Family | VanEck | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2010 | Mar 10, 1999 |
EMLC vs QQQ Performance
VanEck JP Morgan EM Local Currency Bond ETF (EMLC) is a ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EMLC returned +9.23% while QQQ returned +27.27%. Year to date, EMLC is up 3.58% versus a gain of 16.64% for QQQ.
Over three years, EMLC compounded at +7.49% per year against +25.96% for QQQ; over five years the annualized figures are +2.46% and +14.54% respectively. Across the full 16-year window we track, QQQ has the edge at +13.03% annualized vs -2.25%. 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 11.2% for EMLC. 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 -56.3% for EMLC 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMLC charges 0.30% per year while QQQ charges 0.18%. On a $10,000 position that is $30 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, EMLC currently yields 6.30% against 0.44% for QQQ.
Holdings Overlap
EMLC and QQQ share 0 holdings out of 110 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, EMLC or QQQ?
EMLC has an expense ratio of 0.30% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, EMLC or QQQ?
Over the past year EMLC returned +9.23% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), EMLC annualized -2.25% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, EMLC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.2% for EMLC. Worst drawdown: EMLC -56.3% vs QQQ -83.0%.
Should I hold both EMLC and QQQ?
EMLC and QQQ have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMLC and QQQ?
EMLC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 110 unique securities.
Which pays a higher dividend, EMLC or QQQ?
EMLC yields 6.30% while QQQ yields 0.44%, so EMLC currently pays the higher dividend yield.
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