HYEM vs QQQ
VanEck Emerging Markets High Yield Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HYEM offers more diversification with 562 holdings.
Side-by-Side Comparison
| Metric | HYEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $522M | $496.3B | |
| Dividend Yield | 6.76% | 0.44% | |
| Holdings | 562 | 108 | |
| YTD Return | +4.80% | +16.64% | |
| 1Y Return | +7.49% | +27.27% | |
| 3Y Return (annualized) | +11.18% | +25.96% | |
| 5Y Return (annualized) | +3.23% | +14.54% | |
| Volatility (annualized) | 8.6% | 30.6% | |
| Max Drawdown | -39.3% | -83.0% | |
| Fund Family | VanEck | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 8, 2012 | Mar 10, 1999 |
HYEM vs QQQ Performance
VanEck Emerging Markets High Yield Bond ETF (HYEM) is a ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HYEM returned +7.49% while QQQ returned +27.27%. Year to date, HYEM is up 4.80% versus a gain of 16.64% for QQQ.
Over three years, HYEM compounded at +11.18% per year against +25.96% for QQQ; over five years the annualized figures are +3.23% and +14.54% respectively. Across the full 14-year window we track, QQQ has the edge at +13.03% annualized vs +0.88%. 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 8.6% for HYEM. 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 -39.3% for HYEM 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYEM charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, HYEM currently yields 6.76% against 0.44% for QQQ.
Holdings Overlap
HYEM and QQQ share 0 holdings out of 422 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, HYEM or QQQ?
HYEM has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, HYEM or QQQ?
Over the past year HYEM returned +7.49% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), HYEM annualized +0.88% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HYEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.6% for HYEM. Worst drawdown: HYEM -39.3% vs QQQ -83.0%.
Should I hold both HYEM and QQQ?
HYEM and QQQ have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYEM and QQQ?
HYEM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 422 unique securities.
Which pays a higher dividend, HYEM or QQQ?
HYEM yields 6.76% while QQQ yields 0.44%, so HYEM currently pays the higher dividend yield.
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