GEM vs QQQ
Goldman Sachs ActiveBeta Emerging Markets Equity ETF vs Invesco QQQ Trust, Series 1
Which is better, GEM or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. GEM led over 1Y, QQQ over 3Y, 5Y and the full window. GEM is less concentrated, with 37.3% of the fund in its ten largest positions against 47.2%.
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 | GEM | QQQ |
|---|---|---|
| Expense Ratio | 0.35% | 0.18%Best |
| AUM | $1.8B | $498.6B |
| Dividend Yield | 1.87% | 0.42% |
| Holdings | 1,478 | 321 |
| YTD Return | +19.50% | +21.44%Best |
| 1Y Return | +26.81%Best | +23.58% |
| 3Y Return (annualized) | +22.48% | +27.86%Best |
| 5Y Return (annualized) | +8.42% | +16.25%Best |
| Volatility (annualized) | 16.4%Best | 18.8% |
| Max Drawdown | -37.0% | -35.1%Best |
| $10,000 over 5 years | $14,981 | $21,231Best |
| Top 10 Weight | 37.3%Best | 47.2% |
| Fund Family | Goldman Sachs Asset Management | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Sep 25, 2015 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2015 to Oct 1, 2026 (11 years).
GEM 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 11 years both funds cover.
GEM vs QQQ Performance
Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) is an ETF from Goldman Sachs Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year GEM returned +26.81% while QQQ returned +23.58%. Year to date, GEM is up 19.50% versus a gain of 21.44% for QQQ.
Over three years, GEM compounded at +22.48% per year against +27.86% for QQQ; over five years the annualized figures are +8.42% and +16.25% respectively. Across the full 11-year window we track, QQQ has the edge at +20.40% annualized vs +9.10%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 16.4% for GEM. 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 -37.0% for GEM and -35.1% 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 0.66. They move together some of the time, and apart the rest.
Fees and Cost Over Time
GEM charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, GEM currently yields 1.87% against 0.42% for QQQ.
Holdings Overlap
0.2% of GEM's money is in holdings QQQ also owns. 0.5% of QQQ's money is in holdings GEM also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 732 positions we hold weights for in GEM and 102 in QQQ, against full books of 1,478 and 321.
What only one of them owns
Our book lists 95 positions for QQQ that do not appear in our book for GEM (97.5% of the fund), and 15 for GEM that do not appear in QQQ (5.0%).
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 GEM 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, GEM or QQQ?
GEM has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, GEM or QQQ?
Over the past year GEM returned +26.81% vs +23.58% for QQQ, so GEM leads on 1-year performance. Over the longest common window we track (11 years), GEM annualized +9.10% vs +20.40% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, GEM or QQQ?
QQQ has been the more volatile fund at 18.8% annualized versus 16.4% for GEM. Worst drawdown: GEM -37.0% vs QQQ -35.1%.
Should I hold both GEM and QQQ?
GEM and QQQ have a monthly-return correlation of 0.66, 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, GEM or QQQ?
GEM yields 1.87% while QQQ yields 0.42%, so GEM currently pays the higher dividend yield.
Is QQQ better than GEM?
QQQ has a lower expense ratio. GEM led over 1Y, QQQ over 3Y, 5Y and the full window. GEM is less concentrated, with 37.3% of the fund in its ten largest positions against 47.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.