QQQ vs RFEM
Invesco QQQ Trust, Series 1 vs First Trust RiverFront Dynamic Emerging Markets ETF
Quick Verdict
QQQ has a lower expense ratio. RFEM delivered stronger 1-year returns. RFEM offers more diversification with 106 holdings.
Side-by-Side Comparison
| Metric | QQQ | RFEM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.95% | |
| AUM | $455.8B | $78M | |
| Dividend Yield | 0.41% | 1.70% | |
| Holdings | 108 | 115 | |
| YTD Return | +18.31% | +21.71% | |
| 1Y Return | +25.37% | +36.18% | |
| 3Y Return (annualized) | +25.79% | +25.31% | |
| 5Y Return (annualized) | +15.20% | +10.52% | |
| Volatility (annualized) | 30.6% | 17.1% | |
| Max Drawdown | -83.0% | -45.6% | |
| Fund Family | Invesco (US) | First Trust Portfolios (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 14, 2016 |
QQQ vs RFEM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) is a ETF from First Trust Portfolios (US). Over the past year QQQ returned +25.37% while RFEM returned +36.18%. Year to date, QQQ is up 18.31% versus a gain of 21.71% for RFEM.
Over three years, QQQ compounded at +25.79% per year against +25.31% for RFEM; over five years the annualized figures are +15.20% and +10.52% respectively. Across the full 10-year window we track, QQQ has the edge at +13.10% annualized vs +8.87%. 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 17.1% for RFEM. 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 -45.6% for RFEM. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while RFEM charges 0.95%. On a $10,000 position that is $18 vs $95 annually, a gap of $77 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.70% for RFEM.
Holdings Overlap
QQQ and RFEM share 0 holdings out of 209 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 RFEM?
QQQ has an expense ratio of 0.18% while RFEM charges 0.95%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, QQQ or RFEM?
Over the past year QQQ returned +25.37% vs +36.18% for RFEM, so RFEM leads on 1-year performance. Over the longest common window we track (10 years), QQQ annualized +13.10% vs +8.87% for RFEM. Past performance does not guarantee future results.
Which is riskier, QQQ or RFEM?
QQQ has been the more volatile fund at 30.6% annualized versus 17.1% for RFEM. Worst drawdown: QQQ -83.0% vs RFEM -45.6%.
Should I hold both QQQ and RFEM?
QQQ and RFEM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RFEM?
QQQ and RFEM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 209 unique securities.
Which pays a higher dividend, QQQ or RFEM?
QQQ yields 0.41% while RFEM yields 1.70%, so RFEM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.