FFEM vs QQQ
Fidelity Fundamental Emerging Markets ETF vs Invesco QQQ Trust, Series 1
Which is better, FFEM or QQQ?
FFEM has been ahead.
QQQ has a lower expense ratio. FFEM led over 1Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 48.0%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FFEM | QQQ |
|---|---|---|
| Expense Ratio | 0.60% | 0.18%Best |
| AUM | $62M | $483.5B |
| Dividend Yield | 1.23% | 0.44% |
| Holdings | 125 | 107 |
| YTD Return | +22.52%Best | +15.86% |
| 1Y Return | +39.87%Best | +22.63% |
| 3Y Return (annualized) | - | +24.15% |
| 5Y Return (annualized) | - | +14.16% |
| Volatility (annualized) | 17.7%Best | 19.2% |
| Max Drawdown | -16.3%Best | -22.8% |
| $10,000 over 1.8 years | $17,202Best | $14,156 |
| Top 10 Weight | 48.0% | 46.5%Best |
| Fund Family | Fidelity Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Nov 19, 2024 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 1.8 years row, are measured over the window both funds cover: Nov 21, 2024 to Sep 10, 2026 (1.8 years).
FFEM vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.8 years both funds cover.
FFEM vs QQQ Performance
Fidelity Fundamental Emerging Markets ETF (FFEM) is an ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FFEM returned +39.87% while QQQ returned +22.63%. Year to date, FFEM is up 22.52% versus a gain of 15.86% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 17.7% 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 -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 1.23% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 108 holdings in FFEM and 102 in QQQ, totalling 99.0% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 108 positions we hold weights for in FFEM and 102 in QQQ, against full books of 125 and 107.
What only one of them owns
Our book lists 95 positions for QQQ that do not appear in our book for FFEM (97.0% of the fund), and 10 for FFEM that do not appear in QQQ (4.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of FFEM and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $42 a year on a $10,000 investment.
Which performed better, FFEM or QQQ?
Over the past year FFEM returned +39.87% vs +22.63% for QQQ, so FFEM leads on 1-year performance. Over the longest common window we track (2 years), FFEM annualized +35.17% vs +21.30% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FFEM or QQQ?
QQQ has been the more volatile fund at 19.2% annualized versus 17.7% for FFEM. Worst drawdown: FFEM -16.3% vs QQQ -22.8%.
Should I hold both FFEM and QQQ?
FFEM and QQQ have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FFEM or QQQ?
FFEM yields 1.23% while QQQ yields 0.44%, so FFEM currently pays the higher dividend yield.
Is QQQ better than FFEM?
QQQ has a lower expense ratio. FFEM led over 1Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 48.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.