EMTY vs QQQ

EMTY vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricEMTYQQQWinner
Expense Ratio0.65%0.18%
AUM$3M$496.3B
Dividend Yield3.33%0.44%
Holdings5108
YTD Return-2.11%+19.52%
1Y Return+3.91%+26.68%
3Y Return (annualized)-4.91%+26.64%
5Y Return (annualized)-2.98%+15.36%
Volatility (annualized)24.1%30.6%
Max Drawdown-78.1%-83.0%
Fund FamilyProSharesInvesco (US)
CategoryAlternativeEquity
InceptionNov 14, 2017Mar 10, 1999

EMTY vs QQQ Performance

ProShares Decline of the Retail Store ETF (EMTY) is a ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EMTY returned +3.91% while QQQ returned +26.68%. Year to date, EMTY is down 2.11% versus a gain of 19.52% for QQQ.

Over three years, EMTY compounded at -4.91% per year against +26.64% for QQQ; over five years the annualized figures are -2.98% and +15.36% respectively. Across the full 9-year window we track, QQQ has the edge at +13.14% annualized vs -11.56%. 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 24.1% for EMTY. 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 -78.1% for EMTY 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 -0.59. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EMTY charges 0.65% per year while QQQ charges 0.18%. On a $10,000 position that is $65 vs $18 annually, a gap of $47 per year that compounds over a long holding period. On income, EMTY currently yields 3.33% against 0.44% for QQQ.

Frequently Asked Questions

Which is cheaper, EMTY or QQQ?

EMTY has an expense ratio of 0.65% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $47 per year of difference.

Which performed better, EMTY or QQQ?

Over the past year EMTY returned +3.91% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), EMTY annualized -11.56% vs +13.14% for QQQ. Past performance does not guarantee future results.

Which is riskier, EMTY or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 24.1% for EMTY. Worst drawdown: EMTY -78.1% vs QQQ -83.0%.

Should I hold both EMTY and QQQ?

EMTY and QQQ have a monthly-return correlation of -0.59, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, EMTY or QQQ?

EMTY yields 3.33% while QQQ yields 0.44%, so EMTY currently pays the higher dividend yield.

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