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XEM.TO vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XEM.TO vs. QQQ

Last updated Jun 4, 2026

XEM.TO (iShares MSCI Emerging Markets Index ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - XEM.TO is a Emerging Markets Equities fund tracking the Morningstar EM GR CAD, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, XEM.TO returned 10.27%/yr vs 22.80%/yr for QQQ. A 0.54 correlation means they provide meaningful diversification when combined. XEM.TO charges 0.81%/yr vs 0.18%/yr for QQQ.

Performance

XEM.TO vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares MSCI Emerging Markets Index ETF (XEM.TO) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

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Different Trading Currencies

XEM.TO is traded in CAD, while QQQ is traded in USD. To make them comparable, the QQQ values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, XEM.TO achieves a 29.23% return, which is significantly higher than QQQ's 22.67% return. Over the past 10 years, XEM.TO has underperformed QQQ with an annualized return of 10.27%, while QQQ has yielded a comparatively higher 22.80% annualized return.

XEM.TO

1D
-0.85%
1M
11.30%
YTD
29.23%
6M
29.57%
1Y
57.02%
3Y*
24.75%
5Y*
9.57%
10Y*
10.27%

QQQ

1D
0.00%
1M
12.65%
YTD
22.67%
6M
19.03%
1Y
43.44%
3Y*
30.21%
5Y*
21.31%
10Y*
22.80%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XEM.TO vs. QQQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XEM.TO
iShares MSCI Emerging Markets Index ETF		29.23%27.25%14.98%6.49%-15.74%-4.09%14.12%11.48%-8.05%27.78%
QQQ
Invesco QQQ ETF		22.84%15.23%36.37%51.45%-27.77%26.27%46.11%32.13%8.34%24.22%

Correlation

The correlation between XEM.TO and QQQ 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

0.55

Correlation (5Y)
Calculated over the trailing 5-year period

0.50

Correlation (10Y)
Calculated over the trailing 10-year period

0.53

Correlation (All Time)
Calculated using the full available price history since Jun 25, 2009

0.54

The correlation between XEM.TO and QQQ shifts across timeframes, from 0.50 (5 years) to 0.64 (1 year), reflecting how their relationship changes across market environments.

XEM.TO vs. QQQ - Sectors Allocation Comparison

Sectors
XEM.TO
QQQ

Technology

37.0%
53.8%

Financial Services

19.4%
0.2%

Consumer Cyclical

9.6%
12.3%

Industrials

7.5%
2.8%

Communication Services

6.9%
15.8%

Basic Materials

6.5%
1.1%

Energy

4.0%
0.6%

Consumer Defensive

3.0%
7.7%

Healthcare

2.9%
4.2%

Utilities

2.1%
1.4%

Real Estate

1.1%
0.1%

Technology

XEM.TO
37.0%
QQQ
53.8%

Financial Services

XEM.TO
19.4%
QQQ
0.2%

Consumer Cyclical

XEM.TO
9.6%
QQQ
12.3%

Industrials

XEM.TO
7.5%
QQQ
2.8%

Communication Services

XEM.TO
6.9%
QQQ
15.8%

Basic Materials

XEM.TO
6.5%
QQQ
1.1%

Energy

XEM.TO
4.0%
QQQ
0.6%

Consumer Defensive

XEM.TO
3.0%
QQQ
7.7%

Healthcare

XEM.TO
2.9%
QQQ
4.2%

Utilities

XEM.TO
2.1%
QQQ
1.4%

Real Estate

XEM.TO
1.1%
QQQ
0.1%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares MSCI Emerging Markets Index ETF

Invesco QQQ ETF

Often compared with XEM.TO:
XEM.TO vs. XEC.TOXEM.TO vs. XEF.TOXEM.TO vs. XEQT.TOXEM.TO vs. ZEA.TOXEM.TO vs. VXC.TOXEM.TO vs. VOOXEM.TO vs. VFV.TO
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. QQQI

Return for Risk

XEM.TO vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XEM.TO
XEM.TO Risk / Return Rank: 8585
Overall Rank
XEM.TO Sharpe Ratio Rank: 8888
Sharpe Ratio Rank
XEM.TO Sortino Ratio Rank: 8484
Sortino Ratio Rank
XEM.TO Omega Ratio Rank: 8787
Omega Ratio Rank
XEM.TO Calmar Ratio Rank: 8585
Calmar Ratio Rank
XEM.TO Martin Ratio Rank: 8383
Martin Ratio Rank
QQQ
QQQ Risk / Return Rank: 7373
Overall Rank
QQQ Sharpe Ratio Rank: 7979
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 7575
Sortino Ratio Rank
QQQ Omega Ratio Rank: 7474
Omega Ratio Rank
QQQ Calmar Ratio Rank: 6969
Calmar Ratio Rank
QQQ Martin Ratio Rank: 7171
Martin Ratio Rank
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.

XEM.TO vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets Index ETF (XEM.TO) 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.

XEM.TOQQQDifference
Sharpe ratioReturn per unit of total volatility
2.97
2.80

+0.18

Sortino ratioReturn per unit of downside risk
3.85
3.63

+0.22

Omega ratioGain probability vs. loss probability

1.55

1.50

+0.05

Calmar ratioReturn relative to maximum drawdown

4.67

3.55

+1.12

Martin ratioReturn relative to average drawdown

17.00

11.34

+5.66

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XEM.TO vs. QQQ - Sharpe Ratio Comparison

The current XEM.TO Sharpe Ratio is 2.97, which is comparable to the QQQ Sharpe Ratio of 2.80. The chart below compares the historical Sharpe Ratios of XEM.TO 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.

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Sharpe Ratios by Period

XEM.TOQQQDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.97

2.80

+0.18

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.58

1.03

-0.45

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.57

1.10

-0.53

Sharpe Ratio (All Time)

Calculated using the full available price history

0.43

1.19

-0.76

Drawdowns

XEM.TO vs. QQQ - Drawdown Comparison

The maximum XEM.TO drawdown since its inception was -35.29%, which is greater than QQQ's maximum drawdown of -31.80%. Use the drawdown chart below to compare losses from any high point for XEM.TO and QQQ.

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Drawdown Indicators

XEM.TOQQQDifference

Max Drawdown

Largest peak-to-trough decline

-35.29%

-31.80%

-3.49%

Max Drawdown (1Y)

Largest decline over 1 year

-12.27%

-12.29%

+0.02%

Max Drawdown (3Y)

Largest decline over 3 years

-15.30%

-22.58%

+7.28%

Max Drawdown (5Y)

Largest decline over 5 years

-31.08%

-31.80%

+0.72%

Max Drawdown (10Y)

Largest decline over 10 years

-35.29%

-31.80%

-3.49%

Current Drawdown

Current decline from peak

-0.85%

0.00%

-0.85%

Average Drawdown

Average peak-to-trough decline

-10.45%

-4.73%

-5.72%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.36%

3.84%

-0.48%

Volatility

XEM.TO vs. QQQ - Volatility Comparison

iShares MSCI Emerging Markets Index ETF (XEM.TO) has a higher volatility of 8.30% compared to Invesco QQQ ETF (QQQ) at 4.35%. This indicates that XEM.TO's price experiences larger fluctuations and is considered to be riskier 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

XEM.TOQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

8.30%

4.35%

+3.95%

Volatility (6M)

Calculated over the trailing 6-month period

16.79%

11.80%

+4.99%

Volatility (1Y)

Calculated over the trailing 1-year period

19.28%

15.62%

+3.66%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.84%

20.72%

-3.88%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.12%

20.82%

-2.70%

XEM.TO vs. QQQ - Expense Ratio Comparison

XEM.TO has a 0.81% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

XEM.TO vs. QQQ - Dividend Comparison

XEM.TO's dividend yield for the trailing twelve months is around 1.47%, more than QQQ's 0.38% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
XEM.TO
iShares MSCI Emerging Markets Index ETF		1.47%1.90%2.08%2.39%2.10%1.91%1.28%2.57%1.96%1.78%1.96%2.22%

Frequently Asked Questions

XEM.TO and QQQ 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.

On fees, QQQ is cheaper at 0.18% per year. The better choice depends on whether you care most about return, fees, risk, or income.

QQQ is cheaper with a 0.18% expense ratio, compared with 0.81% for XEM.TO.

XEM.TO is categorized as Emerging Markets Equities, while QQQ is Nasdaq-100. XEM.TO tracks Morningstar EM GR CAD, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.81% for XEM.TO and 0.18% for QQQ.

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