PEMX vs QQQ
Putnam Emerging Markets ex-China ETF vs Invesco QQQ Trust, Series 1
Which is better, PEMX or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. PEMX led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 53.9%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PEMX | QQQ |
|---|---|---|
| Expense Ratio | 0.69% | 0.18%Best |
| AUM | $32M | $483.5B |
| Dividend Yield | 5.24% | 0.44% |
| Holdings | 57 | 107 |
| YTD Return | +30.18%Best | +17.95% |
| 1Y Return | +44.85%Best | +21.77% |
| 3Y Return (annualized) | +32.01%Best | +25.63% |
| 5Y Return (annualized) | - | +15.24% |
| Volatility (annualized) | 18.3% | 17.1%Best |
| Max Drawdown | -19.0%Best | -22.8% |
| $10,000 over 3.3 years | $23,872Best | $21,603 |
| Top 10 Weight | 53.9% | 46.5%Best |
| Fund Family | Putnam Investments | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | May 17, 2023 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 3.3 years row, are measured over the window both funds cover: May 18, 2023 to Sep 18, 2026 (3.3 years).
PEMX vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3.3 years both funds cover.
PEMX vs QQQ Performance
Putnam Emerging Markets ex-China ETF (PEMX) is an ETF from Putnam Investments and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PEMX returned +44.85% while QQQ returned +21.77%. Year to date, PEMX is up 30.18% versus a gain of 17.95% for QQQ.
Over three years, PEMX compounded at +32.01% per year against +25.63% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PEMX has been the more volatile fund, with annualized monthly volatility of 18.3% compared with 17.1% for QQQ. 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 -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 5.24% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 50 holdings in PEMX and 102 in QQQ, totalling 100.4% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 50 positions we hold weights for in PEMX and 102 in QQQ, against full books of 57 and 107.
What only one of them owns
Our book lists 96 positions for QQQ that do not appear in our book for PEMX (97.5% of the fund), and 1 for PEMX that do not appear in QQQ (1.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of PEMX and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $51 a year on a $10,000 investment.
Which performed better, PEMX or QQQ?
Over the past year PEMX returned +44.85% vs +21.77% for QQQ, so PEMX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PEMX or QQQ?
PEMX has been the more volatile fund at 18.3% annualized versus 17.1% for QQQ. Worst drawdown: PEMX -19.0% vs QQQ -22.8%.
Should I hold both PEMX and QQQ?
PEMX and QQQ have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, PEMX or QQQ?
PEMX yields 5.24% while QQQ yields 0.44%, so PEMX currently pays the higher dividend yield.
Is QQQ better than PEMX?
QQQ has a lower expense ratio. PEMX led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 53.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.