FEMR vs QQQ
Fidelity Enhanced Emerging Markets ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FEMR delivered stronger 1-year returns. FEMR offers more diversification with 149 holdings.
Side-by-Side Comparison
| Metric | FEMR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $167M | $496.3B | |
| Dividend Yield | 1.55% | 0.44% | |
| Holdings | 149 | 108 | |
| YTD Return | +24.64% | +16.19% | |
| 1Y Return | +42.87% | +25.22% | |
| 3Y Return (annualized) | - | +25.47% | |
| 5Y Return (annualized) | - | +14.34% | |
| Volatility (annualized) | 19.0% | 30.6% | |
| Max Drawdown | -15.6% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 19, 2024 | Mar 10, 1999 |
FEMR vs QQQ Performance
Fidelity Enhanced Emerging Markets ETF (FEMR) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FEMR returned +42.87% while QQQ returned +25.22%. Year to date, FEMR is up 24.64% versus a gain of 16.19% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 19.0% for FEMR. 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 -15.6% for FEMR 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FEMR charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, FEMR currently yields 1.55% against 0.44% for QQQ.
Holdings Overlap
FEMR and QQQ share 0 holdings out of 250 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, FEMR or QQQ?
FEMR has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, FEMR or QQQ?
Over the past year FEMR returned +42.87% vs +25.22% for QQQ, so FEMR leads on 1-year performance. Over the longest common window we track (2 years), FEMR annualized +35.23% vs +13.01% for QQQ. Past performance does not guarantee future results.
Which is riskier, FEMR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.0% for FEMR. Worst drawdown: FEMR -15.6% vs QQQ -83.0%.
Should I hold both FEMR and QQQ?
FEMR and QQQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEMR and QQQ?
FEMR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 250 unique securities.
Which pays a higher dividend, FEMR or QQQ?
FEMR yields 1.55% while QQQ yields 0.44%, so FEMR currently pays the higher dividend yield.
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