FMQQ vs. HEEM

Last updated Jun 4, 2026

FMQQ (FMQQ The Next Frontier Internet & Ecommerce ETF) and HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) are both Emerging Markets Diversified funds - FMQQ tracks the FMQQ The Next Frontier Internet & Ecommerce Index - Benchmark TR Net while HEEM tracks the MSCI Emerging Markets 100% USD Hedged Index. Both are passively managed. Over the past 3 years, FMQQ returned 1.86%/yr vs 27.05%/yr for HEEM. A 0.66 correlation means they provide meaningful diversification when combined. FMQQ charges 0.86%/yr vs 0.72%/yr for HEEM.

Performance

FMQQ vs. HEEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FMQQ The Next Frontier Internet & Ecommerce ETF (FMQQ) and iShares Currency Hedged MSCI Emerging Markets ETF (HEEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FMQQ achieves a -18.43% return, which is significantly lower than HEEM's 30.24% return.

FMQQ

• 1D: -2.42%
• 1M: -5.36%
• YTD: -18.43%
• 6M: -20.54%
• 1Y: -20.58%
• 3Y*: 1.86%
• 5Y*: —
• 10Y*: —

HEEM

• 1D: -0.64%
• 1M: 10.04%
• YTD: 30.24%
• 6M: 32.57%
• 1Y: 63.91%
• 3Y*: 27.05%
• 5Y*: 10.42%
• 10Y*: 11.42%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FMQQ vs. HEEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
FMQQ FMQQ The Next Frontier Internet & Ecommerce ETF	-18.43%	10.77%	12.45%	15.15%	-54.03%	-15.21%
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	30.24%	34.02%	12.59%	10.14%	-16.85%	-1.35%

Correlation

The correlation between FMQQ and HEEM is 0.64, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (All Time) Calculated using the full available price history since Sep 29, 2021	0.66

The correlation between FMQQ and HEEM has been stable across timeframes, ranging from 0.60 to 0.66 - a consistent structural relationship.

FMQQ vs. HEEM - Sectors Allocation Comparison

Sectors	FMQQ	HEEM
Consumer Cyclical	32.7%	9.6%
Technology	9.8%	37.0%
Communication Services	6.4%	6.9%
Financial Services	2.3%	19.4%
Utilities	1.5%	2.1%
Real Estate	1.0%	1.1%
Consumer Defensive	0.6%	3.0%
Industrials	0.4%	7.5%
Basic Materials	-	6.5%
Energy	-	4.0%
Healthcare	-	2.9%

Return for Risk

FMQQ vs. HEEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FMQQ

FMQQ Risk / Return Rank: 2
FMQQ Sharpe Ratio Rank: 1
FMQQ Sortino Ratio Rank: 1
FMQQ Omega Ratio Rank: 2
FMQQ Calmar Ratio Rank: 3
FMQQ Martin Ratio Rank: 2

HEEM

HEEM Risk / Return Rank: 93
HEEM Sharpe Ratio Rank: 94
HEEM Sortino Ratio Rank: 93
HEEM Omega Ratio Rank: 94
HEEM Calmar Ratio Rank: 91
HEEM Martin Ratio Rank: 93

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FMQQ vs. HEEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FMQQ The Next Frontier Internet & Ecommerce ETF (FMQQ) and iShares Currency Hedged MSCI Emerging Markets ETF (HEEM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FMQQ	HEEM	Difference
Sharpe ratio Return per unit of total volatility	-1.08	3.64	-4.72
Sortino ratio Return per unit of downside risk	-1.52	4.70	-6.22
Omega ratio Gain probability vs. loss probability	0.83	1.68	-0.84
Calmar ratio Return relative to maximum drawdown	-0.67	5.93	-6.60
Martin ratio Return relative to average drawdown	-1.37	23.76	-25.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FMQQ vs. HEEM - Sharpe Ratio Comparison

The current FMQQ Sharpe Ratio is -1.08, which is lower than the HEEM Sharpe Ratio of 3.64. The chart below compares the historical Sharpe Ratios of FMQQ and HEEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FMQQ	HEEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.08	3.64	-4.72
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.62	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.64	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.63	0.49	-1.12

Drawdowns

FMQQ vs. HEEM - Drawdown Comparison

The maximum FMQQ drawdown since its inception was -64.51%, which is greater than HEEM's maximum drawdown of -33.53%. Use the drawdown chart below to compare losses from any high point for FMQQ and HEEM.

Drawdown Indicators

	FMQQ	HEEM	Difference
Max Drawdown Largest peak-to-trough decline	-64.51%	-33.53%	-30.98%
Max Drawdown (1Y) Largest decline over 1 year	-30.82%	-10.83%	-19.99%
Max Drawdown (3Y) Largest decline over 3 years	-30.82%	-14.82%	-16.00%
Max Drawdown (5Y) Largest decline over 5 years	—	-30.60%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.53%	—
Current Drawdown Current decline from peak	-55.91%	-0.64%	-55.27%
Average Drawdown Average peak-to-trough decline	-49.37%	-11.14%	-38.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.10%	2.70%	+12.40%

Volatility

FMQQ vs. HEEM - Volatility Comparison

The current volatility for FMQQ The Next Frontier Internet & Ecommerce ETF (FMQQ) is 6.21%, while iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) has a volatility of 7.57%. This indicates that FMQQ experiences smaller price fluctuations and is considered to be less risky than HEEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FMQQ	HEEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.21%	7.57%	-1.36%
Volatility (6M) Calculated over the trailing 6-month period	15.66%	15.37%	+0.29%
Volatility (1Y) Calculated over the trailing 1-year period	19.04%	17.67%	+1.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.82%	17.01%	+7.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.82%	17.97%	+6.85%

FMQQ vs. HEEM - Expense Ratio Comparison

FMQQ has a 0.86% expense ratio, which is higher than HEEM's 0.72% expense ratio.

Dividends

FMQQ vs. HEEM - Dividend Comparison

FMQQ's dividend yield for the trailing twelve months is around 0.75%, less than HEEM's 3.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMQQ FMQQ The Next Frontier Internet & Ecommerce ETF	0.75%	0.61%	0.45%	0.11%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	3.05%	3.98%	2.38%	2.75%	7.49%	1.93%	1.49%	3.04%	2.37%	2.05%	1.84%	6.28%

Frequently Asked Questions

Can I hold both FMQQ and HEEM in my portfolio?

FMQQ and HEEM have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FMQQ or HEEM?

HEEM has higher volatility (7.57%) compared to FMQQ (6.21%). In terms of maximum drawdown, FMQQ dropped -64.51% vs HEEM's -33.53%.

Which ETF is better, FMQQ or HEEM?

On 3-year performance, HEEM leads with 27.05% vs 1.86% for FMQQ. On fees, HEEM is cheaper at 0.72% per year. On volatility, FMQQ has been the lower-risk option at 6.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FMQQ or HEEM?

Over the 3-year period, HEEM has performed better with a 27.05% return vs 1.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FMQQ or HEEM?

HEEM is cheaper with a 0.72% expense ratio, compared with 0.86% for FMQQ.

Which ETF pays a higher dividend yield, FMQQ or HEEM?

HEEM has the higher dividend yield at 3.05%, compared with 0.75% for FMQQ.

What is the main difference between FMQQ and HEEM?

FMQQ tracks FMQQ The Next Frontier Internet & Ecommerce Index - Benchmark TR Net, while HEEM tracks MSCI Emerging Markets 100% USD Hedged Index. They also come from different issuers: EMQQ and iShares. Their fees differ too: 0.86% for FMQQ and 0.72% for HEEM.

Which has better risk-adjusted returns?

HEEM currently has the higher Sharpe Ratio (3.64 vs -1.08), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.