QQQ vs RNEM
Invesco QQQ Trust, Series 1 vs First Trust Emerging Markets Equity Select ETF
Which is better, QQQ or RNEM?
Large Cap Growth against Large Cap Value.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. RNEM is less concentrated, with 27.1% of the fund in its ten largest positions against 46.5%.
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 | QQQ | RNEM |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.75% |
| AUM | $486.1B | $17M |
| Dividend Yield | 0.44% | 2.27% |
| Holdings | 107 | 311 |
| YTD Return | +17.44%Best | +3.83% |
| 1Y Return | +24.69%Best | +8.09% |
| 3Y Return (annualized) | +24.76%Best | +7.93% |
| 5Y Return (annualized) | +14.22%Best | +5.62% |
| Volatility (annualized) | 19.6% | 14.3%Best |
| Max Drawdown | -35.1%Best | -42.3% |
| $10,000 over 5 years | $19,441Best | $13,144 |
| Top 10 Weight | 46.5% | 27.1%Best |
| Fund Family | Invesco (US) | First Trust Portfolios (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Mar 10, 1999 | Jun 20, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Jun 23, 2017 to Sep 8, 2026 (9.2 years).
QQQ vs RNEM 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 9.2 years both funds cover.
QQQ vs RNEM Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and First Trust Emerging Markets Equity Select ETF (RNEM) is an ETF from First Trust Portfolios (US). Over the past year QQQ returned +24.69% while RNEM returned +8.09%. Year to date, QQQ is up 17.44% versus a gain of 3.83% for RNEM.
Over three years, QQQ compounded at +24.76% per year against +7.93% for RNEM; over five years the annualized figures are +14.22% and +5.62% respectively. Across the full 9-year window we track, QQQ has the edge at +19.74% annualized vs +3.20%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 14.3% for RNEM. 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 -35.1% for QQQ and -42.3% for RNEM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.51. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while RNEM charges 0.75%. On a $10,000 position that is $18 vs $75 annually, a gap of $57 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 2.27% for RNEM.
Holdings Overlap
We hold position weights for 102 holdings in QQQ and 287 in RNEM, totalling 99.9% and 98.6% 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 102 positions we hold weights for in QQQ and 287 in RNEM, against full books of 107 and 311.
What only one of them owns
Our book lists 8 positions for RNEM that do not appear in our book for QQQ (1.4% of the fund), and 94 for QQQ that do not appear in RNEM (96.8%).
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 QQQ and RNEM 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, QQQ or RNEM?
QQQ has an expense ratio of 0.18% while RNEM charges 0.75%. QQQ is the cheaper option, by $57 a year on a $10,000 investment.
Which performed better, QQQ or RNEM?
Over the past year QQQ returned +24.69% vs +8.09% for RNEM, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +19.74% vs +3.20% for RNEM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or RNEM?
QQQ has been the more volatile fund at 19.6% annualized versus 14.3% for RNEM. Worst drawdown: QQQ -35.1% vs RNEM -42.3%.
Should I hold both QQQ and RNEM?
QQQ and RNEM have a monthly-return correlation of 0.51, 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, QQQ or RNEM?
QQQ yields 0.44% while RNEM yields 2.27%, so RNEM currently pays the higher dividend yield.
Is RNEM better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. RNEM is less concentrated, with 27.1% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.