KEMX vs QQQ
KraneShares MSCI Emerging Markets ex China Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. KEMX delivered stronger 1-year returns. KEMX offers more diversification with 295 holdings.
Side-by-Side Comparison
| Metric | KEMX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.24% | 0.18% | |
| AUM | $131M | $496.3B | |
| Dividend Yield | 2.66% | 0.44% | |
| Holdings | 295 | 108 | |
| YTD Return | +33.24% | +19.52% | |
| 1Y Return | +58.43% | +26.68% | |
| 3Y Return (annualized) | +28.18% | +26.64% | |
| 5Y Return (annualized) | +13.50% | +15.36% | |
| Volatility (annualized) | 20.4% | 30.6% | |
| Max Drawdown | -38.8% | -83.0% | |
| Fund Family | KraneShares | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 12, 2019 | Mar 10, 1999 |
KEMX vs QQQ Performance
KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) is a ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KEMX returned +58.43% while QQQ returned +26.68%. Year to date, KEMX is up 33.24% versus a gain of 19.52% for QQQ.
Over three years, KEMX compounded at +28.18% per year against +26.64% for QQQ; over five years the annualized figures are +13.50% and +15.36% respectively. Across the full 7-year window we track, KEMX has the edge at +13.21% annualized vs +13.14%. 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 20.4% for KEMX. 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 -38.8% for KEMX 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KEMX charges 0.24% per year while QQQ charges 0.18%. On a $10,000 position that is $24 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, KEMX currently yields 2.66% against 0.44% for QQQ.
Holdings Overlap
KEMX and QQQ share 0 holdings out of 383 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, KEMX or QQQ?
KEMX has an expense ratio of 0.24% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, KEMX or QQQ?
Over the past year KEMX returned +58.43% vs +26.68% for QQQ, so KEMX leads on 1-year performance. Over the longest common window we track (7 years), KEMX annualized +13.21% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, KEMX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.4% for KEMX. Worst drawdown: KEMX -38.8% vs QQQ -83.0%.
Should I hold both KEMX and QQQ?
KEMX and QQQ have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KEMX and QQQ?
KEMX and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 383 unique securities.
Which pays a higher dividend, KEMX or QQQ?
KEMX yields 2.66% while QQQ yields 0.44%, so KEMX currently pays the higher dividend yield.
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