FFEM vs QQQ
Fidelity Fundamental Emerging Markets ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FFEM delivered stronger 1-year returns. FFEM offers more diversification with 118 holdings.
Side-by-Side Comparison
| Metric | FFEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $62M | $496.3B | |
| Dividend Yield | 1.26% | 0.44% | |
| Holdings | 118 | 108 | |
| YTD Return | +21.28% | +17.07% | |
| 1Y Return | +43.37% | +26.39% | |
| 3Y Return (annualized) | - | +26.08% | |
| 5Y Return (annualized) | - | +15.18% | |
| Volatility (annualized) | 18.0% | 30.6% | |
| Max Drawdown | -16.3% | -83.0% | |
| Fund Family | Fidelity Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 19, 2024 | Mar 10, 1999 |
FFEM vs QQQ Performance
Fidelity Fundamental Emerging Markets ETF (FFEM) is a ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FFEM returned +43.37% while QQQ returned +26.39%. Year to date, FFEM is up 21.28% versus a gain of 17.07% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 18.0% for FFEM. 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 -16.3% for FFEM 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
FFEM charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, FFEM currently yields 1.26% against 0.44% for QQQ.
Holdings Overlap
FFEM and QQQ share 0 holdings out of 208 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, FFEM or QQQ?
FFEM has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, FFEM or QQQ?
Over the past year FFEM returned +43.37% vs +26.39% for QQQ, so FFEM leads on 1-year performance. Over the longest common window we track (2 years), FFEM annualized +35.79% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, FFEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.0% for FFEM. Worst drawdown: FFEM -16.3% vs QQQ -83.0%.
Should I hold both FFEM and QQQ?
FFEM 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 FFEM and QQQ?
FFEM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 208 unique securities.
Which pays a higher dividend, FFEM or QQQ?
FFEM yields 1.26% while QQQ yields 0.44%, so FFEM currently pays the higher dividend yield.
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