FDEM vs QQQ
Fidelity Emerging Markets Multifactor ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FDEM offers more diversification with 208 holdings.
Side-by-Side Comparison
| Metric | FDEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $581M | $496.3B | |
| Dividend Yield | 3.00% | 0.44% | |
| Holdings | 208 | 108 | |
| YTD Return | +13.41% | +16.23% | |
| 1Y Return | +24.83% | +26.23% | |
| 3Y Return (annualized) | +20.94% | +25.75% | |
| 5Y Return (annualized) | +10.40% | +14.78% | |
| Volatility (annualized) | 15.6% | 30.6% | |
| Max Drawdown | -33.6% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 26, 2019 | Mar 10, 1999 |
FDEM vs QQQ Performance
Fidelity Emerging Markets Multifactor ETF (FDEM) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FDEM returned +24.83% while QQQ returned +26.23%. Year to date, FDEM is up 13.41% versus a gain of 16.23% for QQQ.
Over three years, FDEM compounded at +20.94% per year against +25.75% for QQQ; over five years the annualized figures are +10.40% and +14.78% respectively. Across the full 8-year window we track, QQQ has the edge at +13.02% annualized vs +8.19%. 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 15.6% for FDEM. 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 -33.6% for FDEM 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
FDEM charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, FDEM currently yields 3.00% against 0.44% for QQQ.
Holdings Overlap
FDEM and QQQ share 0 holdings out of 301 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, FDEM or QQQ?
FDEM has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, FDEM or QQQ?
Over the past year FDEM returned +24.83% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), FDEM annualized +8.19% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FDEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.6% for FDEM. Worst drawdown: FDEM -33.6% vs QQQ -83.0%.
Should I hold both FDEM and QQQ?
FDEM 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 FDEM and QQQ?
FDEM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 301 unique securities.
Which pays a higher dividend, FDEM or QQQ?
FDEM yields 3.00% while QQQ yields 0.44%, so FDEM currently pays the higher dividend yield.
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