IEMG vs QQQ
IEMG vs QQQ
iShares Core MSCI Emerging Markets ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
IEMG has a lower expense ratio. IEMG delivered stronger 1-year returns. IEMG offers more diversification with 1154 holdings.
Side-by-Side Comparison
| Metric | IEMG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.18% | |
| AUM | $149.8B | $455.8B | |
| Dividend Yield | 2.17% | 0.41% | |
| Holdings | 2,869 | 108 | |
| YTD Return | +16.86% | +18.20% | |
| 1Y Return | +33.41% | +27.63% | |
| 3Y Return (annualized) | +20.05% | +25.54% | |
| 5Y Return (annualized) | +7.50% | +15.12% | |
| Volatility (annualized) | 16.4% | 30.6% | |
| Max Drawdown | -42.2% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2012 | Mar 10, 1999 |
IEMG vs QQQ Performance
iShares Core MSCI Emerging Markets ETF (IEMG) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IEMG returned +33.41% while QQQ returned +27.63%. Year to date, IEMG is up 16.86% versus a gain of 18.20% for QQQ.
Over three years, IEMG compounded at +20.05% per year against +25.54% for QQQ; over five years the annualized figures are +7.50% and +15.12% respectively. Across the full 14-year window we track, QQQ has the edge at +13.11% annualized vs +4.66%. 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 16.4% for IEMG. 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 -42.2% for IEMG and -83.0% for QQQ. 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
IEMG charges 0.09% per year while QQQ charges 0.18%. On a $10,000 position that is $9 vs $18 annually, a gap of $9 per year that compounds over a long holding period. On income, IEMG currently yields 2.17% against 0.41% for QQQ.
Holdings Overlap
IEMG and QQQ share 1 holdings out of 1256 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IEMG | Weight in QQQ | Difference |
|---|---|---|---|
| PDD | 0.34% | 0.25% | 0.09% |
Frequently Asked Questions
Which is cheaper, IEMG or QQQ?
IEMG has an expense ratio of 0.09% while QQQ charges 0.18%. IEMG is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, IEMG or QQQ?
Over the past year IEMG returned +33.41% vs +27.63% for QQQ, so IEMG leads on 1-year performance. Over the longest common window we track (14 years), IEMG annualized +4.66% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, IEMG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.4% for IEMG. Worst drawdown: IEMG -42.2% vs QQQ -83.0%.
Should I hold both IEMG and QQQ?
IEMG and QQQ 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 IEMG and QQQ?
IEMG and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 1256 unique securities.
Which pays a higher dividend, IEMG or QQQ?
IEMG yields 2.17% while QQQ yields 0.41%, so IEMG currently pays the higher dividend yield.
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