KEM vs QQQ
KraneShares Dynamic Emerging Markets Strategy ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | KEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.18% | |
| AUM | $1M | $496.3B | |
| Dividend Yield | 2.56% | 0.44% | |
| Holdings | 3 | 108 | |
| YTD Return | +6.57% | +16.64% | |
| 1Y Return | +2.35% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 13.5% | 30.6% | |
| Max Drawdown | -25.7% | -83.0% | |
| Fund Family | KraneShares | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 25, 2023 | Mar 10, 1999 |
KEM vs QQQ Performance
KraneShares Dynamic Emerging Markets Strategy ETF (KEM) is a ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KEM returned +2.35% while QQQ returned +27.27%. Year to date, KEM is up 6.57% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.5% for KEM. 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 -25.7% for KEM 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KEM charges 0.47% per year while QQQ charges 0.18%. On a $10,000 position that is $47 vs $18 annually, a gap of $29 per year that compounds over a long holding period. On income, KEM currently yields 2.56% against 0.44% for QQQ.
Frequently Asked Questions
Which is cheaper, KEM or QQQ?
KEM has an expense ratio of 0.47% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, KEM or QQQ?
Over the past year KEM returned +2.35% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), KEM annualized +5.73% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, KEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.5% for KEM. Worst drawdown: KEM -25.7% vs QQQ -83.0%.
Should I hold both KEM and QQQ?
KEM and QQQ have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, KEM or QQQ?
KEM yields 2.56% while QQQ yields 0.44%, so KEM currently pays the higher dividend yield.
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