EMOT vs QQQ

EMOT vs QQQ

Which is better, EMOT or QQQ?

Large Cap Blend against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y and the full window. EMOT is less concentrated, with 23.7% of the fund in its ten largest positions against 46.5%.

Lower Fees: QQQHigher Returns: QQQLess Concentrated: EMOT

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricEMOTQQQ
Expense Ratio0.60%0.18%Best
AUM$3M$483.5B
Dividend Yield1.06%0.44%
Holdings102107
YTD Return+10.01%+17.95%Best
1Y Return+9.71%+21.77%Best
3Y Return (annualized)-+25.63%
5Y Return (annualized)-+15.24%
Volatility (annualized)11.5%Best17.6%
Max Drawdown-16.4%Best-22.8%
$10,000 over 2.2 years$13,200$15,064Best
Top 10 Weight23.7%Best46.5%
Fund FamilyFirst Trust Portfolios (US)Invesco (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Growth
InceptionJun 26, 2024Mar 10, 1999

Volatility and max drawdown, and the $10,000 over 2.2 years row, are measured over the window both funds cover: Jun 27, 2024 to Sep 18, 2026 (2.2 years).

EMOT vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.2 years both funds cover.

EMOT vs QQQ Performance

First Trust S&P 500 Economic Moat ETF (EMOT) is an ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year EMOT returned +9.71% while QQQ returned +21.77%. Year to date, EMOT is up 10.01% versus a gain of 17.95% for QQQ.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 17.6% compared with 11.5% for EMOT. 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 -16.4% for EMOT and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.66. They move together some of the time, and apart the rest.

Fees and Cost Over Time

EMOT charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, EMOT currently yields 1.06% against 0.44% for QQQ.

Holdings Overlap

EMOT already in QQQ46.4%
QQQ already in EMOT48.5%

46.4% of EMOT's money is in holdings QQQ also owns. 48.5% of QQQ's money is in holdings EMOT also owns.

The two portfolios partly overlap.

23 positions in common, counted across the 50 positions we hold weights for in EMOT and 102 in QQQ, against full books of 102 and 107.

What only one of them owns

Our book lists 73 positions for QQQ that do not appear in our book for EMOT (49.0% of the fund), and 27 for EMOT that do not appear in QQQ (53.4%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in EMOTWeight in QQQDifference
NVDANvidia Corp2.11%8.44%6.33%
AAPLApple, Inc2.09%7.27%5.18%
MSFTMicrosoft Corp2.44%5.76%3.32%
AMZNAmazon.Com Inc2.10%4.67%2.57%
AVGOBroadcom Inc1.91%3.16%1.25%
GOOGAlphabet Inc1.83%3.13%1.30%
METAMeta Platforms Inc1.93%2.78%0.85%
WMTWalmart, Inc.1.67%2.41%0.74%
AMATApplied Materials, Inc.1.77%1.86%0.09%
LRCXLrcx Uw Equity1.80%1.69%0.11%

48.5% of QQQ is already inside EMOT.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

EMOTQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, EMOT or QQQ?

EMOT has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option, by $42 a year on a $10,000 investment.

Which performed better, EMOT or QQQ?

Over the past year EMOT returned +9.71% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), EMOT annualized +13.45% vs +20.47% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, EMOT or QQQ?

QQQ has been the more volatile fund at 17.6% annualized versus 11.5% for EMOT. Worst drawdown: EMOT -16.4% vs QQQ -22.8%.

Should I hold both EMOT and QQQ?

EMOT and QQQ have a monthly-return correlation of 0.66, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between EMOT and QQQ?

48.5% of QQQ's money is in holdings EMOT also owns. 48.5% of QQQ's is in holdings EMOT also owns. They hold 23 positions in common, counted across the 50 positions we hold weights for in EMOT and 102 in QQQ.

Which pays a higher dividend, EMOT or QQQ?

EMOT yields 1.06% while QQQ yields 0.44%, so EMOT currently pays the higher dividend yield.

Is QQQ better than EMOT?

QQQ has a lower expense ratio. QQQ led over 1Y and the full window. EMOT is less concentrated, with 23.7% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.