MEMS vs QQQ
Matthews Emerging Markets Discovery Active 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 | MEMS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.89% | 0.18% | |
| AUM | $22M | $496.3B | |
| Dividend Yield | 2.52% | 0.44% | |
| Holdings | 86 | 108 | |
| YTD Return | +19.30% | +16.23% | |
| 1Y Return | +19.82% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 16.6% | 30.6% | |
| Max Drawdown | -21.2% | -83.0% | |
| Fund Family | Matthews Asia Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 10, 2024 | Mar 10, 1999 |
MEMS vs QQQ Performance
Matthews Emerging Markets Discovery Active ETF (MEMS) is a ETF from Matthews Asia Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MEMS returned +19.82% while QQQ returned +26.23%. Year to date, MEMS is up 19.30% versus a gain of 16.23% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 16.6% for MEMS. 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 -21.2% for MEMS 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MEMS charges 0.89% per year while QQQ charges 0.18%. On a $10,000 position that is $89 vs $18 annually, a gap of $71 per year that compounds over a long holding period. On income, MEMS currently yields 2.52% against 0.44% for QQQ.
Holdings Overlap
MEMS and QQQ share 0 holdings out of 182 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, MEMS or QQQ?
MEMS has an expense ratio of 0.89% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, MEMS or QQQ?
Over the past year MEMS returned +19.82% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), MEMS annualized +9.78% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, MEMS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.6% for MEMS. Worst drawdown: MEMS -21.2% vs QQQ -83.0%.
Should I hold both MEMS and QQQ?
MEMS and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MEMS and QQQ?
MEMS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 182 unique securities.
Which pays a higher dividend, MEMS or QQQ?
MEMS yields 2.52% while QQQ yields 0.44%, so MEMS currently pays the higher dividend yield.
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