GSEE vs QQQ
Goldman Sachs MarketBeta Emerging Markets Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. GSEE delivered stronger 1-year returns. GSEE offers more diversification with 2,010 holdings.
Side-by-Side Comparison
| Metric | GSEE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.18% | |
| AUM | $137M | $496.3B | |
| Dividend Yield | 2.26% | 0.44% | |
| Holdings | 2,010 | 108 | |
| YTD Return | +19.38% | +16.64% | |
| 1Y Return | +32.53% | +27.27% | |
| 3Y Return (annualized) | +21.49% | +25.96% | |
| 5Y Return (annualized) | +8.33% | +14.54% | |
| Volatility (annualized) | 16.5% | 30.6% | |
| Max Drawdown | -37.5% | -83.0% | |
| Fund Family | Goldman Sachs Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 12, 2020 | Mar 10, 1999 |
GSEE vs QQQ Performance
Goldman Sachs MarketBeta Emerging Markets Equity ETF (GSEE) 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 GSEE returned +32.53% while QQQ returned +27.27%. Year to date, GSEE is up 19.38% versus a gain of 16.64% for QQQ.
Over three years, GSEE compounded at +21.49% per year against +25.96% for QQQ; over five years the annualized figures are +8.33% and +14.54% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs +12.47%. 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 16.5% for GSEE. 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 -37.5% for GSEE 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GSEE charges 0.36% per year while QQQ charges 0.18%. On a $10,000 position that is $36 vs $18 annually, a gap of $18 per year that compounds over a long holding period. On income, GSEE currently yields 2.26% against 0.44% for QQQ.
Holdings Overlap
GSEE and QQQ share 2 holdings out of 1321 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GSEE or QQQ?
GSEE has an expense ratio of 0.36% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, GSEE or QQQ?
Over the past year GSEE returned +32.53% vs +27.27% for QQQ, so GSEE leads on 1-year performance. Over the longest common window we track (6 years), GSEE annualized +12.47% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, GSEE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.5% for GSEE. Worst drawdown: GSEE -37.5% vs QQQ -83.0%.
Should I hold both GSEE and QQQ?
GSEE and QQQ have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GSEE and QQQ?
GSEE and QQQ share 2 common holdings with a 0.3% weight overlap. Combined, they hold 1321 unique securities.
Which pays a higher dividend, GSEE or QQQ?
GSEE yields 2.26% while QQQ yields 0.44%, so GSEE currently pays the higher dividend yield.
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