LEMB vs. QQQ
LEMB (iShares J.P. Morgan EM Local Currency Bond ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - LEMB is a Emerging Markets Bonds fund tracking the J.P. Morgan GBI-EM Global 15 cap 4.5 floor, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, LEMB returned 1.37%/yr vs 21.94%/yr for QQQ. At a 0.37 correlation, their price movements are largely independent. LEMB charges 0.30%/yr vs 0.18%/yr for QQQ.
Performance
LEMB vs. QQQ - Performance Comparison
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Returns By Period
In the year-to-date period, LEMB achieves a 1.19% return, which is significantly lower than QQQ's 21.30% return. Over the past 10 years, LEMB has underperformed QQQ with an annualized return of 1.37%, while QQQ has yielded a comparatively higher 21.94% annualized return.
LEMB
- 1D
- -0.57%
- 1M
- 1.13%
- YTD
- 1.19%
- 6M
- 2.18%
- 1Y
- 9.81%
- 3Y*
- 6.09%
- 5Y*
- 0.59%
- 10Y*
- 1.37%
QQQ
- 1D
- -0.26%
- 1M
- 10.60%
- YTD
- 21.30%
- 6M
- 19.66%
- 1Y
- 41.82%
- 3Y*
- 28.78%
- 5Y*
- 17.97%
- 10Y*
- 21.94%
LEMB vs. QQQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LEMB iShares J.P. Morgan EM Local Currency Bond ETF | 1.19% | 18.02% | -1.72% | 7.23% | -10.74% | -9.92% | 3.10% | 6.40% | -7.49% | 12.49% |
QQQ Invesco QQQ ETF | 21.30% | 20.77% | 25.58% | 54.86% | -32.58% | 27.42% | 48.62% | 38.96% | -0.13% | 32.66% |
Correlation
The correlation between LEMB and QQQ is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.46 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.34 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.38 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011 | 0.37 |
The correlation between LEMB and QQQ shifts across timeframes, from 0.34 (3 years) to 0.46 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
LEMB vs. QQQ — Risk / Return Rank
LEMB
QQQ
LEMB vs. QQQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares J.P. Morgan EM Local Currency Bond ETF (LEMB) and Invesco QQQ ETF (QQQ). 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.
| LEMB | QQQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.13 | ||
| Sortino ratioReturn per unit of downside risk | -1.34 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.45 | -0.17 |
| Calmar ratioReturn relative to maximum drawdown | 1.64 | 3.51 | -1.87 |
| Martin ratioReturn relative to average drawdown | 5.58 | 13.49 | -7.91 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| LEMB | QQQ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.51 | 2.64 | -1.13 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.07 | 0.81 | -0.74 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.15 | 0.99 | -0.84 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.05 | 0.41 | -0.36 |
Drawdowns
LEMB vs. QQQ - Drawdown Comparison
The maximum LEMB drawdown since its inception was -30.82%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for LEMB and QQQ.
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Drawdown Indicators
| LEMB | QQQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -30.82% | -82.97% | +52.15% |
Max Drawdown (1Y)Largest decline over 1 year | -6.00% | -11.96% | +5.96% |
Max Drawdown (3Y)Largest decline over 3 years | -10.09% | -22.77% | +12.68% |
Max Drawdown (5Y)Largest decline over 5 years | -25.29% | -35.12% | +9.83% |
Max Drawdown (10Y)Largest decline over 10 years | -29.09% | -35.12% | +6.03% |
Current DrawdownCurrent decline from peak | -4.87% | -0.26% | -4.61% |
Average DrawdownAverage peak-to-trough decline | -12.74% | -32.79% | +20.05% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.76% | 3.11% | -1.35% |
Volatility
LEMB vs. QQQ - Volatility Comparison
The current volatility for iShares J.P. Morgan EM Local Currency Bond ETF (LEMB) is 2.09%, while Invesco QQQ ETF (QQQ) has a volatility of 4.49%. This indicates that LEMB experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LEMB | QQQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.09% | 4.49% | -2.40% |
Volatility (6M)Calculated over the trailing 6-month period | 5.34% | 12.10% | -6.76% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.54% | 15.94% | -9.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.24% | 22.38% | -14.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.29% | 22.29% | -13.00% |
LEMB vs. QQQ - Expense Ratio Comparison
LEMB has a 0.30% expense ratio, which is higher than QQQ's 0.18% expense ratio.
Dividends
LEMB vs. QQQ - Dividend Comparison
LEMB's dividend yield for the trailing twelve months is around 2.41%, more than QQQ's 0.38% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LEMB iShares J.P. Morgan EM Local Currency Bond ETF | 2.41% | 2.44% | 0.00% | 1.34% | 0.86% | 3.89% | 0.00% | 4.39% | 3.46% | 0.00% | 0.00% | 0.64% |
QQQ Invesco QQQ ETF | 0.38% | 0.45% | 0.56% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% |
Frequently Asked Questions
LEMB and QQQ have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
QQQ has higher volatility (4.49%) compared to LEMB (2.09%). In terms of maximum drawdown, LEMB dropped -30.82% vs QQQ's -82.97%.
On 10-year performance, QQQ leads with 21.94% vs 1.37% for LEMB. On fees, QQQ is cheaper at 0.18% per year. On volatility, LEMB has been the lower-risk option at 2.09%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, QQQ has performed better with a 21.94% return vs 1.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
QQQ is cheaper with a 0.18% expense ratio, compared with 0.30% for LEMB.
LEMB has the higher dividend yield at 2.41%, compared with 0.38% for QQQ.
LEMB is categorized as Emerging Markets Bonds, while QQQ is Nasdaq-100. LEMB tracks J.P. Morgan GBI-EM Global 15 cap 4.5 floor, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.30% for LEMB and 0.18% for QQQ.
QQQ currently has the higher Sharpe Ratio (2.64 vs 1.51), 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.
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