QQQ vs VEMY

QQQ vs VEMY

Which is better, QQQ or VEMY?

Large Cap Growth against High Yield Bond.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window.

Lower Fees: QQQHigher Returns: QQQ

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

MetricQQQVEMY
Expense Ratio0.18%Best0.55%
AUM$498.6B$55M
Dividend Yield0.42%8.05%
Holdings321189
YTD Return+24.01%Best+2.49%
1Y Return+25.94%Best+6.89%
3Y Return (annualized)+28.16%Best+13.78%
5Y Return (annualized)+16.56%-
Volatility (annualized)17.3%7.2%Best
Max Drawdown-22.8%-8.8%Best
$10,000 over 3.8 years$26,762Best$15,154
Fund FamilyInvesco (US)Virtus Investment Partners
CategoryEquityFixed Income
StyleLarge Cap GrowthHigh Yield Bond
InceptionMar 10, 1999Dec 12, 2022

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 3.8 years row, are measured over the window both funds cover: Dec 13, 2022 to Oct 7, 2026 (3.8 years).

QQQ vs VEMY 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 3.8 years both funds cover.

QQQ vs VEMY Performance

Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Virtus Stone Harbor Emerging Markets High Yield Bond ETF (VEMY) is an ETF from Virtus Investment Partners. Over the past year QQQ returned +25.94% while VEMY returned +6.89%. Year to date, QQQ is up 24.01% versus a gain of 2.49% for VEMY.

Over three years, QQQ compounded at +28.16% per year against +13.78% for VEMY. Across the full 4-year window we track, QQQ has the edge at +29.57% annualized vs +11.56%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 7.2% for VEMY. 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 -22.8% for QQQ and -8.8% for VEMY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.53. They move together some of the time, and apart the rest.

Fees and Cost Over Time

QQQ charges 0.18% per year while VEMY charges 0.55%. On a $10,000 position that is $18 vs $55 annually, a gap of $37 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 8.05% for VEMY.

You are not choosing between two funds in isolation.

Whichever of QQQ and VEMY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

QQQVEMY

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Frequently Asked Questions

Which is cheaper, QQQ or VEMY?

QQQ has an expense ratio of 0.18% while VEMY charges 0.55%. QQQ is the cheaper option, by $37 a year on a $10,000 investment.

Which performed better, QQQ or VEMY?

Over the past year QQQ returned +25.94% vs +6.89% for VEMY, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +29.57% vs +11.56% for VEMY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, QQQ or VEMY?

QQQ has been the more volatile fund at 17.3% annualized versus 7.2% for VEMY. Worst drawdown: QQQ -22.8% vs VEMY -8.8%.

Should I hold both QQQ and VEMY?

QQQ and VEMY have a monthly-return correlation of 0.53, 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 VEMY?

QQQ yields 0.42% while VEMY yields 8.05%, so VEMY currently pays the higher dividend yield.

Is VEMY better than QQQ?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.