GAEM vs QQQ
Simplify Gamma Emerging Market Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | GAEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.18% | |
| AUM | $41M | $496.3B | |
| Dividend Yield | 7.15% | 0.44% | |
| Holdings | 80 | 108 | |
| YTD Return | +4.52% | +16.64% | |
| 1Y Return | +8.90% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 4.6% | 30.6% | |
| Max Drawdown | -3.8% | -83.0% | |
| Fund Family | Simplify Exchange Traded Funds | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 12, 2024 | Mar 10, 1999 |
GAEM vs QQQ Performance
Simplify Gamma Emerging Market Bond ETF (GAEM) is a ETF from Simplify Exchange Traded Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GAEM returned +8.90% while QQQ returned +27.27%. Year to date, GAEM is up 4.52% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.6% for GAEM. 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 -3.8% for GAEM 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GAEM charges 0.76% per year while QQQ charges 0.18%. On a $10,000 position that is $76 vs $18 annually, a gap of $58 per year that compounds over a long holding period. On income, GAEM currently yields 7.15% against 0.44% for QQQ.
Holdings Overlap
GAEM and QQQ share 0 holdings out of 129 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, GAEM or QQQ?
GAEM has an expense ratio of 0.76% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $58 per year of difference.
Which performed better, GAEM or QQQ?
Over the past year GAEM returned +8.90% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), GAEM annualized +10.46% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, GAEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.6% for GAEM. Worst drawdown: GAEM -3.8% vs QQQ -83.0%.
Should I hold both GAEM and QQQ?
GAEM and QQQ have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GAEM and QQQ?
GAEM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 129 unique securities.
Which pays a higher dividend, GAEM or QQQ?
GAEM yields 7.15% while QQQ yields 0.44%, so GAEM currently pays the higher dividend yield.
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