RNEM vs. QQQ

Last updated Jun 4, 2026

RNEM (First Trust Emerging Markets Equity Select ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - RNEM is a Emerging Markets Equities fund tracking the Nasdaq Riskalyze Emerging Markets Equity Select Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 5 years, RNEM returned 3.88%/yr vs 17.97%/yr for QQQ. At a 0.44 correlation, their price movements are largely independent. RNEM charges 0.75%/yr vs 0.18%/yr for QQQ.

Performance

RNEM vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Emerging Markets Equity Select ETF (RNEM) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RNEM achieves a -1.51% return, which is significantly lower than QQQ's 21.30% return.

RNEM

• 1D: -1.34%
• 1M: -1.29%
• YTD: -1.51%
• 6M: -0.99%
• 1Y: 3.68%
• 3Y*: 7.58%
• 5Y*: 3.88%
• 10Y*: —

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%

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

RNEM vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RNEM First Trust Emerging Markets Equity Select ETF	-1.51%	15.58%	-1.47%	23.43%	-8.75%	6.16%	-8.16%	12.76%	-9.34%	11.97%
QQQ Invesco QQQ ETF	21.30%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	10.75%

Correlation

The correlation between RNEM and QQQ is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (All Time) Calculated using the full available price history since Jun 26, 2017	0.44

The correlation between RNEM and QQQ shifts across timeframes, from 0.44 (all time) to 0.60 (1 year), reflecting how their relationship changes across market environments.

RNEM vs. QQQ - Sectors Allocation Comparison

Sectors	RNEM	QQQ
Financial Services	34.7%	0.2%
Basic Materials	13.7%	1.1%
Consumer Cyclical	10.1%	12.3%
Communication Services	9.1%	15.8%
Energy	7.6%	0.6%
Technology	6.0%	53.8%
Consumer Defensive	5.9%	7.7%
Healthcare	4.6%	4.2%
Industrials	4.1%	2.8%
Utilities	3.7%	1.4%
Real Estate	0.8%	0.1%

Return for Risk

RNEM vs. QQQ — Risk / Return Rank

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

RNEM

RNEM Risk / Return Rank: 12
RNEM Sharpe Ratio Rank: 12
RNEM Sortino Ratio Rank: 12
RNEM Omega Ratio Rank: 12
RNEM Calmar Ratio Rank: 13
RNEM Martin Ratio Rank: 13

QQQ

QQQ Risk / Return Rank: 73
QQQ Sharpe Ratio Rank: 79
QQQ Sortino Ratio Rank: 75
QQQ Omega Ratio Rank: 74
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 71

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.

RNEM vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets Equity Select ETF (RNEM) 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.

	RNEM	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	0.28	2.64	-2.36
Sortino ratio: Return per unit of downside risk	0.50	3.45	-2.95
Omega ratio: Gain probability vs. loss probability	1.06	1.45	-0.39
Calmar ratio: Return relative to maximum drawdown	0.34	3.51	-3.17
Martin ratio: Return relative to average drawdown	0.80	13.49	-12.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RNEM vs. QQQ - Sharpe Ratio Comparison

The current RNEM Sharpe Ratio is 0.28, which is lower than the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of RNEM and QQQ, 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

	RNEM	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.28	2.64	-2.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.81	-0.54
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.99	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.41	-0.18

Drawdowns

RNEM vs. QQQ - Drawdown Comparison

The maximum RNEM drawdown since its inception was -38.38%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for RNEM and QQQ.

Drawdown Indicators

	RNEM	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-38.38%	-82.97%	+44.59%
Max Drawdown (1Y) Largest decline over 1 year	-10.71%	-11.96%	+1.25%
Max Drawdown (3Y) Largest decline over 3 years	-13.09%	-22.77%	+9.68%
Max Drawdown (5Y) Largest decline over 5 years	-21.41%	-35.12%	+13.71%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.12%	—
Current Drawdown Current decline from peak	-7.46%	-0.26%	-7.20%
Average Drawdown Average peak-to-trough decline	-9.30%	-32.79%	+23.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.59%	3.11%	+1.48%

Volatility

RNEM vs. QQQ - Volatility Comparison

The current volatility for First Trust Emerging Markets Equity Select ETF (RNEM) is 4.23%, while Invesco QQQ ETF (QQQ) has a volatility of 4.49%. This indicates that RNEM 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.

Volatility by Period

	RNEM	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.23%	4.49%	-0.26%
Volatility (6M) Calculated over the trailing 6-month period	10.37%	12.10%	-1.73%
Volatility (1Y) Calculated over the trailing 1-year period	13.31%	15.94%	-2.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.40%	22.38%	-7.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.22%	22.29%	-5.07%

RNEM vs. QQQ - Expense Ratio Comparison

RNEM has a 0.75% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

RNEM vs. QQQ - Dividend Comparison

RNEM's dividend yield for the trailing twelve months is around 2.79%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
RNEM First Trust Emerging Markets Equity Select ETF	2.79%	2.75%	3.45%	1.63%	2.99%	3.20%	3.01%	2.85%	2.85%	2.28%	0.00%	0.00%

Frequently Asked Questions

Can I hold both RNEM and QQQ in my portfolio?

RNEM and QQQ have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RNEM or QQQ?

QQQ has higher volatility (4.49%) compared to RNEM (4.23%). In terms of maximum drawdown, RNEM dropped -38.38% vs QQQ's -82.97%.

Which ETF is better, RNEM or QQQ?

On 5-year performance, QQQ leads with 17.97% vs 3.88% for RNEM. On fees, QQQ is cheaper at 0.18% per year. On volatility, RNEM has been the lower-risk option at 4.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RNEM or QQQ?

Over the 5-year period, QQQ has performed better with a 17.97% return vs 3.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RNEM or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.75% for RNEM.

Which ETF pays a higher dividend yield, RNEM or QQQ?

RNEM has the higher dividend yield at 2.79%, compared with 0.38% for QQQ.

What is the main difference between RNEM and QQQ?

RNEM is categorized as Emerging Markets Equities, while QQQ is Nasdaq-100. RNEM tracks Nasdaq Riskalyze Emerging Markets Equity Select Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.75% for RNEM and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.64 vs 0.28), 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.