QQQ vs REM
Invesco QQQ Trust, Series 1 vs iShares Mortgage Real Estate ETF
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 | QQQ | REM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.48% | |
| AUM | $496.3B | $547M | |
| Dividend Yield | 0.44% | 8.92% | |
| Holdings | 108 | 37 | |
| YTD Return | +19.52% | -1.23% | |
| 1Y Return | +26.68% | +5.72% | |
| 3Y Return (annualized) | +26.64% | +6.88% | |
| 5Y Return (annualized) | +15.36% | -1.66% | |
| Volatility (annualized) | 30.6% | 24.6% | |
| Max Drawdown | -83.0% | -92.9% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | May 1, 2007 |
QQQ vs REM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares Mortgage Real Estate ETF (REM) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +26.68% while REM returned +5.72%. Year to date, QQQ is up 19.52% versus a loss of 1.23% for REM.
Over three years, QQQ compounded at +26.64% per year against +6.88% for REM; over five years the annualized figures are +15.36% and -1.66% respectively. Across the full 19-year window we track, QQQ has the edge at +13.14% annualized vs -8.72%. 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 24.6% for REM. 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 -83.0% for QQQ and -92.9% for REM. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while REM charges 0.48%. On a $10,000 position that is $18 vs $48 annually, a gap of $30 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 8.92% for REM.
Holdings Overlap
QQQ and REM share 0 holdings out of 105 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, QQQ or REM?
QQQ has an expense ratio of 0.18% while REM charges 0.48%. QQQ is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, QQQ or REM?
Over the past year QQQ returned +26.68% vs +5.72% for REM, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), QQQ annualized +13.14% vs -8.72% for REM. Past performance does not guarantee future results.
Which is riskier, QQQ or REM?
QQQ has been the more volatile fund at 30.6% annualized versus 24.6% for REM. Worst drawdown: QQQ -83.0% vs REM -92.9%.
Should I hold both QQQ and REM?
QQQ and REM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and REM?
QQQ and REM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, QQQ or REM?
QQQ yields 0.44% while REM yields 8.92%, so REM currently pays the higher dividend yield.
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