EPEM vs QQQ
Harbor Emerging Markets Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. EPEM delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | EPEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.84% | 0.18% | |
| AUM | $8M | $455.8B | |
| Dividend Yield | 2.94% | 0.41% | |
| Holdings | 44 | 108 | |
| YTD Return | +25.83% | +19.68% | |
| 1Y Return | +43.60% | +26.75% | |
| 3Y Return (annualized) | - | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 18.2% | 30.6% | |
| Max Drawdown | -13.3% | -83.0% | |
| Fund Family | Harbor Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 4, 2025 | Mar 10, 1999 |
EPEM vs QQQ Performance
Harbor Emerging Markets Equity ETF (EPEM) is a ETF from Harbor Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EPEM returned +43.60% while QQQ returned +26.75%. Year to date, EPEM is up 25.83% versus a gain of 19.68% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 18.2% for EPEM. 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 -13.3% for EPEM 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EPEM charges 0.84% per year while QQQ charges 0.18%. On a $10,000 position that is $84 vs $18 annually, a gap of $66 per year that compounds over a long holding period. On income, EPEM currently yields 2.94% against 0.41% for QQQ.
Holdings Overlap
EPEM and QQQ share 0 holdings out of 145 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, EPEM or QQQ?
EPEM has an expense ratio of 0.84% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, EPEM or QQQ?
Over the past year EPEM returned +43.60% vs +26.75% for QQQ, so EPEM leads on 1-year performance. Over the longest common window we track (1 years), EPEM annualized +45.23% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, EPEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.2% for EPEM. Worst drawdown: EPEM -13.3% vs QQQ -83.0%.
Should I hold both EPEM and QQQ?
EPEM and QQQ have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EPEM and QQQ?
EPEM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 145 unique securities.
Which pays a higher dividend, EPEM or QQQ?
EPEM yields 2.94% while QQQ yields 0.41%, so EPEM currently pays the higher dividend yield.
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