HEEM vs QQQ
iShares Currency Hedged MSCI Emerging Markets ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. HEEM delivered stronger 1-year returns. HEEM offers more diversification with 1,327 holdings.
Side-by-Side Comparison
| Metric | HEEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.18% | |
| AUM | $292M | $496.3B | |
| Dividend Yield | 1.79% | 0.44% | |
| Holdings | 1,327 | 108 | |
| YTD Return | +18.15% | +16.23% | |
| 1Y Return | +35.02% | +26.23% | |
| 3Y Return (annualized) | +23.02% | +25.75% | |
| 5Y Return (annualized) | +10.18% | +14.78% | |
| Volatility (annualized) | 14.2% | 30.6% | |
| Max Drawdown | -33.5% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2014 | Mar 10, 1999 |
HEEM vs QQQ Performance
iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HEEM returned +35.02% while QQQ returned +26.23%. Year to date, HEEM is up 18.15% versus a gain of 16.23% for QQQ.
Over three years, HEEM compounded at +23.02% per year against +25.75% for QQQ; over five years the annualized figures are +10.18% and +14.78% respectively. Across the full 12-year window we track, QQQ has the edge at +13.02% annualized vs +7.74%. 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 14.2% for HEEM. 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 -33.5% for HEEM 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEEM charges 0.72% per year while QQQ charges 0.18%. On a $10,000 position that is $72 vs $18 annually, a gap of $54 per year that compounds over a long holding period. On income, HEEM currently yields 1.79% against 0.44% for QQQ.
Holdings Overlap
HEEM and QQQ share 0 holdings out of 132 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, HEEM or QQQ?
HEEM has an expense ratio of 0.72% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, HEEM or QQQ?
Over the past year HEEM returned +35.02% vs +26.23% for QQQ, so HEEM leads on 1-year performance. Over the longest common window we track (12 years), HEEM annualized +7.74% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, HEEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.2% for HEEM. Worst drawdown: HEEM -33.5% vs QQQ -83.0%.
Should I hold both HEEM and QQQ?
HEEM and QQQ have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEEM and QQQ?
HEEM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 132 unique securities.
Which pays a higher dividend, HEEM or QQQ?
HEEM yields 1.79% while QQQ yields 0.44%, so HEEM currently pays the higher dividend yield.
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