GEMD vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricGEMDQQQWinner
Expense Ratio0.30%0.18%
AUM$36M$455.8B
Dividend Yield5.63%0.41%
Holdings195108
YTD Return-1.72%+18.20%
1Y Return+3.02%+27.63%
3Y Return (annualized)+6.45%+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)10.1%30.6%
Max Drawdown-24.6%-83.0%
Fund FamilyGoldman Sachs Asset ManagementInvesco (US)
CategoryFixed IncomeEquity
InceptionFeb 15, 2022Mar 10, 1999

GEMD vs QQQ Performance

Goldman Sachs Access Emerging Markets USD Bond ETF (GEMD) is a ETF from Goldman Sachs Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GEMD returned +3.02% while QQQ returned +27.63%. Year to date, GEMD is down 1.72% versus a gain of 18.20% for QQQ.

Over three years, GEMD compounded at +6.45% per year against +25.54% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.11% annualized vs +1.11%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 10.1% for GEMD. 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 -24.6% for GEMD 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

GEMD charges 0.30% per year while QQQ charges 0.18%. On a $10,000 position that is $30 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, GEMD currently yields 5.63% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

GEMD and QQQ share 0 holdings out of 195 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, GEMD or QQQ?

GEMD has an expense ratio of 0.30% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.

Which performed better, GEMD or QQQ?

Over the past year GEMD returned +3.02% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), GEMD annualized +1.11% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, GEMD or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 10.1% for GEMD. Worst drawdown: GEMD -24.6% vs QQQ -83.0%.

Should I hold both GEMD and QQQ?

GEMD and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GEMD and QQQ?

GEMD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 195 unique securities.

Which pays a higher dividend, GEMD or QQQ?

GEMD yields 5.63% while QQQ yields 0.41%, so GEMD currently pays the higher dividend yield.

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