PEMX vs QQQ
Putnam Emerging Markets ex-China ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. PEMX delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PEMX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.18% | |
| AUM | $32M | $496.3B | |
| Dividend Yield | 5.41% | 0.44% | |
| Holdings | 57 | 108 | |
| YTD Return | +30.27% | +16.64% | |
| 1Y Return | +52.74% | +27.27% | |
| 3Y Return (annualized) | +32.22% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 18.6% | 30.6% | |
| Max Drawdown | -19.0% | -83.0% | |
| Fund Family | Putnam Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 17, 2023 | Mar 10, 1999 |
PEMX vs QQQ Performance
Putnam Emerging Markets ex-China ETF (PEMX) is a ETF from Putnam Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PEMX returned +52.74% while QQQ returned +27.27%. Year to date, PEMX is up 30.27% versus a gain of 16.64% for QQQ.
Over three years, PEMX compounded at +32.22% per year against +25.96% for QQQ. Across the full 3-year window we track, PEMX has the edge at +31.01% annualized vs +13.03%. 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 18.6% for PEMX. 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 -19.0% for PEMX 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PEMX charges 0.69% per year while QQQ charges 0.18%. On a $10,000 position that is $69 vs $18 annually, a gap of $51 per year that compounds over a long holding period. On income, PEMX currently yields 5.41% against 0.44% for QQQ.
Holdings Overlap
PEMX and QQQ share 0 holdings out of 150 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, PEMX or QQQ?
PEMX has an expense ratio of 0.69% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, PEMX or QQQ?
Over the past year PEMX returned +52.74% vs +27.27% for QQQ, so PEMX leads on 1-year performance. Over the longest common window we track (3 years), PEMX annualized +31.01% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, PEMX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.6% for PEMX. Worst drawdown: PEMX -19.0% vs QQQ -83.0%.
Should I hold both PEMX and QQQ?
PEMX and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PEMX and QQQ?
PEMX and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 150 unique securities.
Which pays a higher dividend, PEMX or QQQ?
PEMX yields 5.41% while QQQ yields 0.44%, so PEMX currently pays the higher dividend yield.
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