MFEM vs QQQ
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF vs Invesco QQQ Trust, Series 1
Which is better, MFEM or QQQ?
Large Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. MFEM led over 1Y, QQQ over 3Y, 5Y and the full window.
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 | MFEM | QQQ |
|---|---|---|
| Expense Ratio | 0.49% | 0.18%Best |
| AUM | $157M | $506.1B |
| Dividend Yield | 2.20% | 0.42% |
| Holdings | 701 | 321 |
| YTD Return | +21.85%Best | +19.30% |
| 1Y Return | +30.53%Best | +22.47% |
| 3Y Return (annualized) | +20.79% | +26.18%Best |
| 5Y Return (annualized) | +8.38% | +15.42%Best |
| Volatility (annualized) | 17.6%Best | 19.8% |
| Max Drawdown | -45.3% | -35.1%Best |
| $10,000 over 5 years | $14,954 | $20,484Best |
| Fund Family | PIMCO (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Aug 31, 2017 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 6, 2017 to Oct 14, 2026 (9.1 years).
MFEM 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 covers the 9.1 years both funds cover.
MFEM vs QQQ Performance
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is an ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year MFEM returned +30.53% while QQQ returned +22.47%. Year to date, MFEM is up 21.85% versus a gain of 19.30% for QQQ.
Over three years, MFEM compounded at +20.79% per year against +26.18% for QQQ; over five years the annualized figures are +8.38% and +15.42% respectively. Across the full 9-year window we track, QQQ has the edge at +19.84% annualized vs +6.73%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.8% compared with 17.6% for MFEM. 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 -45.3% for MFEM 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 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MFEM charges 0.49% per year while QQQ charges 0.18%. On a $10,000 position that is $49 vs $18 annually, a gap of $31 per year that compounds over a long holding period. On income, MFEM currently yields 2.20% against 0.42% for QQQ.
Holdings Overlap
We hold position weights for 12 holdings in MFEM and 101 in QQQ, totalling 2.2% 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 12 positions we hold weights for in MFEM and 101 in QQQ, against full books of 701 and 321.
You are not choosing between two funds in isolation.
Whichever of MFEM 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, MFEM or QQQ?
MFEM has an expense ratio of 0.49% while QQQ charges 0.18%. QQQ is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, MFEM or QQQ?
Over the past year MFEM returned +30.53% vs +22.47% for QQQ, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +6.73% vs +19.84% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MFEM or QQQ?
QQQ has been the more volatile fund at 19.8% annualized versus 17.6% for MFEM. Worst drawdown: MFEM -45.3% vs QQQ -35.1%.
Should I hold both MFEM and QQQ?
MFEM and QQQ have a monthly-return correlation of 0.65, 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, MFEM or QQQ?
MFEM yields 2.20% while QQQ yields 0.42%, so MFEM currently pays the higher dividend yield.
Is QQQ better than MFEM?
QQQ has a lower expense ratio. MFEM led over 1Y, QQQ over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.