PPEM vs QQQ
Putnam PanAgora ESG Emerging Markets Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. PPEM delivered stronger 1-year returns. PPEM offers more diversification with 109 holdings.
Side-by-Side Comparison
| Metric | PPEM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $2M | $455.8B | |
| Dividend Yield | 49.41% | 0.41% | |
| Holdings | 116 | 108 | |
| YTD Return | +28.48% | +17.85% | |
| 1Y Return | +55.32% | +26.45% | |
| 3Y Return (annualized) | +24.92% | +26.07% | |
| 5Y Return (annualized) | - | +15.16% | |
| Volatility (annualized) | 16.7% | 30.6% | |
| Max Drawdown | -18.4% | -83.0% | |
| Fund Family | Putnam Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 19, 2023 | Mar 10, 1999 |
PPEM vs QQQ Performance
Putnam PanAgora ESG Emerging Markets Equity ETF (PPEM) is a ETF from Putnam Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PPEM returned +55.32% while QQQ returned +26.45%. Year to date, PPEM is up 28.48% versus a gain of 17.85% for QQQ.
Over three years, PPEM compounded at +24.92% per year against +26.07% for QQQ. Across the full 3-year window we track, PPEM has the edge at +21.29% annualized vs +13.09%. 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 16.7% for PPEM. 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 -18.4% for PPEM 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PPEM charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, PPEM currently yields 49.41% against 0.41% for QQQ.
Holdings Overlap
PPEM and QQQ share 0 holdings out of 212 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, PPEM or QQQ?
PPEM has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, PPEM or QQQ?
Over the past year PPEM returned +55.32% vs +26.45% for QQQ, so PPEM leads on 1-year performance. Over the longest common window we track (3 years), PPEM annualized +21.29% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, PPEM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.7% for PPEM. Worst drawdown: PPEM -18.4% vs QQQ -83.0%.
Should I hold both PPEM and QQQ?
PPEM and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PPEM and QQQ?
PPEM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 212 unique securities.
Which pays a higher dividend, PPEM or QQQ?
PPEM yields 49.41% while QQQ yields 0.41%, so PPEM currently pays the higher dividend yield.
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