EMSF vs QQQ
Matthews Emerging Markets Sustainable Future Active ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. EMSF delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | EMSF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.18% | |
| AUM | $43M | $455.8B | |
| Dividend Yield | 1.30% | 0.41% | |
| Holdings | 60 | 108 | |
| YTD Return | +32.66% | +17.46% | |
| 1Y Return | +46.37% | +26.02% | |
| 3Y Return (annualized) | +17.96% | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 22.6% | 30.6% | |
| Max Drawdown | -24.8% | -83.0% | |
| Fund Family | Matthews Asia Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 21, 2023 | Mar 10, 1999 |
EMSF vs QQQ Performance
Matthews Emerging Markets Sustainable Future Active ETF (EMSF) is a ETF from Matthews Asia Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EMSF returned +46.37% while QQQ returned +26.02%. Year to date, EMSF is up 32.66% versus a gain of 17.46% for QQQ.
Over three years, EMSF compounded at +17.96% per year against +25.51% for QQQ. Across the full 3-year window we track, EMSF has the edge at +17.96% annualized vs +13.08%. 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 22.6% for EMSF. 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 -24.8% for EMSF 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMSF charges 0.79% per year while QQQ charges 0.18%. On a $10,000 position that is $79 vs $18 annually, a gap of $61 per year that compounds over a long holding period. On income, EMSF currently yields 1.30% against 0.41% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, EMSF or QQQ?
EMSF has an expense ratio of 0.79% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $61 per year of difference.
Which performed better, EMSF or QQQ?
Over the past year EMSF returned +46.37% vs +26.02% for QQQ, so EMSF leads on 1-year performance. Over the longest common window we track (3 years), EMSF annualized +17.96% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, EMSF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.6% for EMSF. Worst drawdown: EMSF -24.8% vs QQQ -83.0%.
Should I hold both EMSF and QQQ?
EMSF and QQQ have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMSF and QQQ?
EMSF and QQQ share 2 common holdings with a 5.4% weight overlap. Combined, they hold 155 unique securities.
Which pays a higher dividend, EMSF or QQQ?
EMSF yields 1.30% while QQQ yields 0.41%, so EMSF currently pays the higher dividend yield.
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