QQQ vs VEMY
Invesco QQQ Trust, Series 1 vs Virtus Stone Harbor Emerging Markets High Yield Bond ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VEMY offers more diversification with 189 holdings.
Side-by-Side Comparison
| Metric | QQQ | VEMY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.55% | |
| AUM | $496.3B | $50M | |
| Dividend Yield | 0.44% | 8.15% | |
| Holdings | 108 | 189 | |
| YTD Return | +16.64% | +5.48% | |
| 1Y Return | +27.27% | +11.60% | |
| 3Y Return (annualized) | +25.96% | +14.50% | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 6.9% | |
| Max Drawdown | -83.0% | -8.8% | |
| Fund Family | Invesco (US) | Virtus Investment Partners | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Dec 12, 2022 |
QQQ vs VEMY Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Virtus Stone Harbor Emerging Markets High Yield Bond ETF (VEMY) is a ETF from Virtus Investment Partners. Over the past year QQQ returned +27.27% while VEMY returned +11.60%. Year to date, QQQ is up 16.64% versus a gain of 5.48% for VEMY.
Over three years, QQQ compounded at +25.96% per year against +14.50% for VEMY. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +12.87%. 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 6.9% 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 -83.0% for QQQ and -8.8% for VEMY. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
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 0.44% against 8.15% for VEMY.
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. On a $10,000 investment, that is $37 per year of difference.
Which performed better, QQQ or VEMY?
Over the past year QQQ returned +27.27% vs +11.60% for VEMY, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.03% vs +12.87% for VEMY. Past performance does not guarantee future results.
Which is riskier, QQQ or VEMY?
QQQ has been the more volatile fund at 30.6% annualized versus 6.9% for VEMY. Worst drawdown: QQQ -83.0% vs VEMY -8.8%.
Should I hold both QQQ and VEMY?
QQQ and VEMY have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, QQQ or VEMY?
QQQ yields 0.44% while VEMY yields 8.15%, so VEMY currently pays the higher dividend yield.
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