QQQ vs TEI
Invesco QQQ Trust, Series 1 vs Templeton Emerging Markets Income Fund Inc.
Quick Verdict
QQQ has a lower expense ratio. TEI delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | TEI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.14% | |
| AUM | $455.8B | $2,711.9 | |
| Dividend Yield | 0.41% | 12.41% | |
| Holdings | 108 | 151 | |
| YTD Return | +19.68% | +9.87% | |
| 1Y Return | +26.75% | +27.79% | |
| 3Y Return (annualized) | +26.25% | +23.46% | |
| 5Y Return (annualized) | +15.39% | +8.39% | |
| Volatility (annualized) | 30.6% | 17.9% | |
| Max Drawdown | -83.0% | -71.1% | |
| Fund Family | Invesco (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Sep 23, 1993 |
QQQ vs TEI Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Templeton Emerging Markets Income Fund Inc. (TEI) is a ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +26.75% while TEI returned +27.79%. Year to date, QQQ is up 19.68% versus a gain of 9.87% for TEI.
Over three years, QQQ compounded at +26.25% per year against +23.46% for TEI; over five years the annualized figures are +15.39% and +8.39% respectively. Across the full 27-year window we track, QQQ has the edge at +13.15% annualized vs +0.38%. 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 17.9% for TEI. 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 -71.1% for TEI. 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TEI charges 1.14%. On a $10,000 position that is $18 vs $114 annually, a gap of $96 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 12.41% for TEI.
Holdings Overlap
QQQ and TEI share 0 holdings out of 123 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 TEI?
QQQ has an expense ratio of 0.18% while TEI charges 1.14%. QQQ is the cheaper option. On a $10,000 investment, that is $96 per year of difference.
Which performed better, QQQ or TEI?
Over the past year QQQ returned +26.75% vs +27.79% for TEI, so TEI leads on 1-year performance. Over the longest common window we track (27 years), QQQ annualized +13.15% vs +0.38% for TEI. Past performance does not guarantee future results.
Which is riskier, QQQ or TEI?
QQQ has been the more volatile fund at 30.6% annualized versus 17.9% for TEI. Worst drawdown: QQQ -83.0% vs TEI -71.1%.
Should I hold both QQQ and TEI?
QQQ and TEI have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TEI?
QQQ and TEI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 123 unique securities.
Which pays a higher dividend, QQQ or TEI?
QQQ yields 0.41% while TEI yields 12.41%, so TEI currently pays the higher dividend yield.
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