IEMG vs QQQ
iShares Core MSCI Emerging Markets ETF vs Invesco QQQ Trust, Series 1
Which is better, IEMG or QQQ?
Large Cap Blend against Large Cap Growth.
IEMG has a lower expense ratio. IEMG led over 1Y, QQQ over 3Y, 5Y and the full window. IEMG is less concentrated, with 34.7% of the fund in its ten largest positions against 46.7%.
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
| Metric | IEMG | QQQ |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.18% |
| AUM | $157.4B | $506.1B |
| Dividend Yield | 2.21% | 0.42% |
| Holdings | 2,869 | 321 |
| YTD Return | +14.89% | +19.30%Best |
| 1Y Return | +23.17%Best | +22.47% |
| 3Y Return (annualized) | +21.12% | +26.18%Best |
| 5Y Return (annualized) | +7.38% | +15.42%Best |
| Volatility (annualized) | 16.4%Best | 17.5% |
| Max Drawdown | -42.2% | -35.1%Best |
| $10,000 over 5 years | $14,276 | $20,484Best |
| Top 10 Weight | 34.7%Best | 46.7% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Oct 18, 2012 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Oct 22, 2012 to Oct 14, 2026 (14 years).
IEMG vs QQQ 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
IEMG vs QQQ Performance
iShares Core MSCI Emerging Markets ETF (IEMG) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year IEMG returned +23.17% while QQQ returned +22.47%. Year to date, IEMG is up 14.89% versus a gain of 19.30% for QQQ.
Over three years, IEMG compounded at +21.12% per year against +26.18% for QQQ; over five years the annualized figures are +7.38% and +15.42% respectively. Across the full 14-year window we track, QQQ has the edge at +19.03% annualized vs +4.47%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.64. They move together some of the time, and apart the rest.
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 2.21% against 0.42% for QQQ.
Holdings Overlap
We hold position weights for 2,792 holdings in IEMG and 101 in QQQ, totalling 98.2% and 99.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 2,792 positions we hold weights for in IEMG and 101 in QQQ, against full books of 2,869 and 321.
What only one of them owns
Our book lists 93 positions for QQQ that do not appear in our book for IEMG (96.3% of the fund), and 19 for IEMG that do not appear in QQQ (1.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of IEMG and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $9 a year on a $10,000 investment.
Which performed better, IEMG or QQQ?
Over the past year IEMG returned +23.17% vs +22.47% for QQQ, so IEMG leads on 1-year performance. Over the longest common window we track (14 years), IEMG annualized +4.47% vs +19.03% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IEMG or QQQ?
QQQ has been the more volatile fund at 17.5% annualized versus 16.4% for IEMG. Worst drawdown: IEMG -42.2% vs QQQ -35.1%.
Should I hold both IEMG and QQQ?
IEMG and QQQ have a monthly-return correlation of 0.64, 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, IEMG or QQQ?
IEMG yields 2.21% while QQQ yields 0.42%, so IEMG currently pays the higher dividend yield.
Is QQQ better than IEMG?
IEMG has a lower expense ratio. IEMG led over 1Y, QQQ over 3Y, 5Y and the full window. IEMG is less concentrated, with 34.7% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.