QQQ vs XEMD
Invesco QQQ Trust, Series 1 vs BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. XEMD offers more diversification with 429 holdings.
Side-by-Side Comparison
| Metric | QQQ | XEMD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.29% | |
| AUM | $496.3B | $904M | |
| Dividend Yield | 0.44% | 5.81% | |
| Holdings | 108 | 429 | |
| YTD Return | +16.64% | +1.25% | |
| 1Y Return | +27.27% | +6.16% | |
| 3Y Return (annualized) | +25.96% | +10.15% | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 6.6% | |
| Max Drawdown | -83.0% | -10.0% | |
| Fund Family | Invesco (US) | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Jun 30, 2022 |
QQQ vs XEMD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF (XEMD) is a ETF from BondBloxx. Over the past year QQQ returned +27.27% while XEMD returned +6.16%. Year to date, QQQ is up 16.64% versus a gain of 1.25% for XEMD.
Over three years, QQQ compounded at +25.96% per year against +10.15% for XEMD. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +8.57%. 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 6.6% for XEMD. 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 -10.0% for XEMD. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XEMD charges 0.29%. On a $10,000 position that is $18 vs $29 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 5.81% for XEMD.
Holdings Overlap
QQQ and XEMD share 0 holdings out of 243 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 XEMD?
QQQ has an expense ratio of 0.18% while XEMD charges 0.29%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, QQQ or XEMD?
Over the past year QQQ returned +27.27% vs +6.16% for XEMD, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.03% vs +8.57% for XEMD. Past performance does not guarantee future results.
Which is riskier, QQQ or XEMD?
QQQ has been the more volatile fund at 30.6% annualized versus 6.6% for XEMD. Worst drawdown: QQQ -83.0% vs XEMD -10.0%.
Should I hold both QQQ and XEMD?
QQQ and XEMD have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XEMD?
QQQ and XEMD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 243 unique securities.
Which pays a higher dividend, QQQ or XEMD?
QQQ yields 0.44% while XEMD yields 5.81%, so XEMD currently pays the higher dividend yield.
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