QQQ vs RNEM
Invesco QQQ Trust, Series 1 vs First Trust Emerging Markets Equity Select ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. RNEM offers more diversification with 272 holdings.
Side-by-Side Comparison
| Metric | QQQ | RNEM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.76% | |
| AUM | $455.8B | $17M | |
| Dividend Yield | 0.41% | 2.77% | |
| Holdings | 108 | 290 | |
| YTD Return | +18.31% | +1.59% | |
| 1Y Return | +25.37% | +5.74% | |
| 3Y Return (annualized) | +25.79% | +7.50% | |
| 5Y Return (annualized) | +15.20% | +5.47% | |
| Volatility (annualized) | 30.6% | 14.3% | |
| Max Drawdown | -83.0% | -42.3% | |
| Fund Family | Invesco (US) | First Trust Portfolios (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 20, 2017 |
QQQ vs RNEM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and First Trust Emerging Markets Equity Select ETF (RNEM) is a ETF from First Trust Portfolios (US). Over the past year QQQ returned +25.37% while RNEM returned +5.74%. Year to date, QQQ is up 18.31% versus a gain of 1.59% for RNEM.
Over three years, QQQ compounded at +25.79% per year against +7.50% for RNEM; over five years the annualized figures are +15.20% and +5.47% respectively. Across the full 9-year window we track, QQQ has the edge at +13.10% annualized vs +2.98%. 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 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 -83.0% for QQQ and -42.3% for RNEM. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while RNEM charges 0.76%. On a $10,000 position that is $18 vs $76 annually, a gap of $58 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.77% for RNEM.
Holdings Overlap
QQQ and RNEM share 0 holdings out of 375 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 RNEM?
QQQ has an expense ratio of 0.18% while RNEM charges 0.76%. QQQ is the cheaper option. On a $10,000 investment, that is $58 per year of difference.
Which performed better, QQQ or RNEM?
Over the past year QQQ returned +25.37% vs +5.74% for RNEM, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +13.10% vs +2.98% for RNEM. Past performance does not guarantee future results.
Which is riskier, QQQ or RNEM?
QQQ has been the more volatile fund at 30.6% annualized versus 14.3% for RNEM. Worst drawdown: QQQ -83.0% vs RNEM -42.3%.
Should I hold both QQQ and RNEM?
QQQ and RNEM have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RNEM?
QQQ and RNEM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 375 unique securities.
Which pays a higher dividend, QQQ or RNEM?
QQQ yields 0.41% while RNEM yields 2.77%, so RNEM currently pays the higher dividend yield.
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