LDEM vs QQQ
iShares ESG MSCI EM Leaders ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
LDEM has a lower expense ratio. QQQ delivered stronger 1-year returns. LDEM offers more diversification with 423 holdings.
Side-by-Side Comparison
| Metric | LDEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.17% | 0.18% | |
| AUM | $32M | $455.8B | |
| Dividend Yield | 2.93% | 0.41% | |
| Holdings | 459 | 108 | |
| YTD Return | +3.21% | +18.31% | |
| 1Y Return | +12.10% | +25.37% | |
| 3Y Return (annualized) | +14.40% | +25.79% | |
| 5Y Return (annualized) | +2.63% | +15.20% | |
| Volatility (annualized) | 18.4% | 30.6% | |
| Max Drawdown | -40.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 5, 2020 | Mar 10, 1999 |
LDEM vs QQQ Performance
iShares ESG MSCI EM Leaders ETF (LDEM) 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 LDEM returned +12.10% while QQQ returned +25.37%. Year to date, LDEM is up 3.21% versus a gain of 18.31% for QQQ.
Over three years, LDEM compounded at +14.40% per year against +25.79% for QQQ; over five years the annualized figures are +2.63% and +15.20% respectively. Across the full 7-year window we track, QQQ has the edge at +13.10% annualized vs +4.79%. 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 18.4% for LDEM. 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 -40.8% for LDEM 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LDEM charges 0.17% per year while QQQ charges 0.18%. On a $10,000 position that is $17 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, LDEM currently yields 2.93% against 0.41% for QQQ.
Holdings Overlap
LDEM and QQQ share 0 holdings out of 526 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, LDEM or QQQ?
LDEM has an expense ratio of 0.17% while QQQ charges 0.18%. LDEM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, LDEM or QQQ?
Over the past year LDEM returned +12.10% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), LDEM annualized +4.79% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, LDEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.4% for LDEM. Worst drawdown: LDEM -40.8% vs QQQ -83.0%.
Should I hold both LDEM and QQQ?
LDEM and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LDEM and QQQ?
LDEM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 526 unique securities.
Which pays a higher dividend, LDEM or QQQ?
LDEM yields 2.93% while QQQ yields 0.41%, so LDEM currently pays the higher dividend yield.
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