DAPP vs QQQ
VanEck Digital Transformation ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | DAPP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.52% | 0.18% | |
| AUM | $242M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 25 | 108 | |
| YTD Return | -2.47% | +17.46% | |
| 1Y Return | +4.14% | +26.02% | |
| 3Y Return (annualized) | +35.61% | +25.51% | |
| 5Y Return (annualized) | -7.25% | +15.12% | |
| Volatility (annualized) | 76.8% | 30.6% | |
| Max Drawdown | -91.9% | -83.0% | |
| Fund Family | VanEck | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Apr 12, 2021 | Mar 10, 1999 |
DAPP vs QQQ Performance
VanEck Digital Transformation ETF (DAPP) is a ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DAPP returned +4.14% while QQQ returned +26.02%. Year to date, DAPP is down 2.47% versus a gain of 17.46% for QQQ.
Over three years, DAPP compounded at +35.61% per year against +25.51% for QQQ; over five years the annualized figures are -7.25% and +15.12% respectively. Across the full 5-year window we track, QQQ has the edge at +13.08% annualized vs -9.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DAPP has been the more volatile fund, with annualized monthly volatility of 76.8% compared with 30.6% for QQQ. 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 -91.9% for DAPP and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DAPP charges 0.52% per year while QQQ charges 0.18%. On a $10,000 position that is $52 vs $18 annually, a gap of $34 per year that compounds over a long holding period. On income, DAPP currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
DAPP and QQQ share 1 holdings out of 122 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in DAPP | Weight in QQQ | Difference |
|---|---|---|---|
| MSTR | 3.80% | 0.13% | 3.67% |
Frequently Asked Questions
Which is cheaper, DAPP or QQQ?
DAPP has an expense ratio of 0.52% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, DAPP or QQQ?
Over the past year DAPP returned +4.14% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), DAPP annualized -9.28% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, DAPP or QQQ?
DAPP has been the more volatile fund at 76.8% annualized versus 30.6% for QQQ. Worst drawdown: DAPP -91.9% vs QQQ -83.0%.
Should I hold both DAPP and QQQ?
DAPP and QQQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DAPP and QQQ?
DAPP and QQQ share 1 common holdings with a 0.1% weight overlap. Combined, they hold 122 unique securities.
Which pays a higher dividend, DAPP or QQQ?
DAPP yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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