JHEM vs QQQ
John Hancock Multifactor Emerging Markets ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. JHEM delivered stronger 1-year returns. JHEM offers more diversification with 945 holdings.
Side-by-Side Comparison
| Metric | JHEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.18% | |
| AUM | $987M | $455.8B | |
| Dividend Yield | 1.78% | 0.41% | |
| Holdings | 956 | 108 | |
| YTD Return | +17.08% | +17.46% | |
| 1Y Return | +34.72% | +26.02% | |
| 3Y Return (annualized) | +20.09% | +25.51% | |
| 5Y Return (annualized) | +7.93% | +15.12% | |
| Volatility (annualized) | 17.8% | 30.6% | |
| Max Drawdown | -35.0% | -83.0% | |
| Fund Family | John Hancock Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 27, 2018 | Mar 10, 1999 |
JHEM vs QQQ Performance
John Hancock Multifactor Emerging Markets ETF (JHEM) is a ETF from John Hancock Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year JHEM returned +34.72% while QQQ returned +26.02%. Year to date, JHEM is up 17.08% versus a gain of 17.46% for QQQ.
Over three years, JHEM compounded at +20.09% per year against +25.51% for QQQ; over five years the annualized figures are +7.93% and +15.12% respectively. Across the full 8-year window we track, QQQ has the edge at +13.08% annualized vs +7.72%. 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 17.8% for JHEM. 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 -35.0% for JHEM 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
JHEM charges 0.49% per year while QQQ charges 0.18%. On a $10,000 position that is $49 vs $18 annually, a gap of $31 per year that compounds over a long holding period. On income, JHEM currently yields 1.78% against 0.41% for QQQ.
Holdings Overlap
JHEM and QQQ share 1 holdings out of 1047 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in JHEM | Weight in QQQ | Difference |
|---|---|---|---|
| PDD | 1.12% | 0.25% | 0.87% |
Frequently Asked Questions
Which is cheaper, JHEM or QQQ?
JHEM has an expense ratio of 0.49% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, JHEM or QQQ?
Over the past year JHEM returned +34.72% vs +26.02% for QQQ, so JHEM leads on 1-year performance. Over the longest common window we track (8 years), JHEM annualized +7.72% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, JHEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.8% for JHEM. Worst drawdown: JHEM -35.0% vs QQQ -83.0%.
Should I hold both JHEM and QQQ?
JHEM and QQQ have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between JHEM and QQQ?
JHEM and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 1047 unique securities.
Which pays a higher dividend, JHEM or QQQ?
JHEM yields 1.78% while QQQ yields 0.41%, so JHEM currently pays the higher dividend yield.
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