QQQ vs SPEM

Quick Verdict

SPEM has a lower expense ratio. QQQ delivered stronger 1-year returns. SPEM offers more diversification with 2853 holdings.

Lower Fees: SPEMHigher Returns: QQQMore Diversified: SPEM

Side-by-Side Comparison

MetricQQQSPEMWinner
Expense Ratio0.18%0.07%
AUM$455.8B$17.2B
Dividend Yield0.41%2.53%
Holdings1083,044
YTD Return+18.31%+10.68%
1Y Return+25.37%+21.59%
3Y Return (annualized)+25.79%+17.69%
5Y Return (annualized)+15.20%+6.77%
Volatility (annualized)30.6%20.1%
Max Drawdown-83.0%-65.1%
Fund FamilyInvesco (US)SPDR State Street Global Advisors
CategoryEquityEquity
InceptionMar 10, 1999Mar 19, 2007

QQQ vs SPEM Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR Portfolio Emerging Markets ETF (SPEM) is a ETF from SPDR State Street Global Advisors. Over the past year QQQ returned +25.37% while SPEM returned +21.59%. Year to date, QQQ is up 18.31% versus a gain of 10.68% for SPEM.

Over three years, QQQ compounded at +25.79% per year against +17.69% for SPEM; over five years the annualized figures are +15.20% and +6.77% respectively. Across the full 19-year window we track, QQQ has the edge at +13.10% annualized vs +3.92%. 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 20.1% for SPEM. 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 -65.1% for SPEM. 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while SPEM charges 0.07%. On a $10,000 position that is $18 vs $7 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.53% for SPEM.

Holdings Overlap

0.3%overlap

QQQ and SPEM share 1 holdings out of 2955 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QQQWeight in SPEMDifference
PDD0.25%0.67%0.42%

Frequently Asked Questions

Which is cheaper, QQQ or SPEM?

QQQ has an expense ratio of 0.18% while SPEM charges 0.07%. SPEM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, QQQ or SPEM?

Over the past year QQQ returned +25.37% vs +21.59% for SPEM, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), QQQ annualized +13.10% vs +3.92% for SPEM. Past performance does not guarantee future results.

Which is riskier, QQQ or SPEM?

QQQ has been the more volatile fund at 30.6% annualized versus 20.1% for SPEM. Worst drawdown: QQQ -83.0% vs SPEM -65.1%.

Should I hold both QQQ and SPEM?

QQQ and SPEM have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and SPEM?

QQQ and SPEM share 1 common holdings with a 0.3% weight overlap. Combined, they hold 2955 unique securities.

Which pays a higher dividend, QQQ or SPEM?

QQQ yields 0.41% while SPEM yields 2.53%, so SPEM currently pays the higher dividend yield.

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