DBAW vs QQQ
Xtrackers MSCI All World ex US Hedged Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DBAW delivered stronger 1-year returns. DBAW offers more diversification with 1,830 holdings.
Side-by-Side Comparison
| Metric | DBAW | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $304M | $496.3B | |
| Dividend Yield | 1.73% | 0.44% | |
| Holdings | 1,830 | 108 | |
| YTD Return | +16.56% | +19.52% | |
| 1Y Return | +29.76% | +26.68% | |
| 3Y Return (annualized) | +21.77% | +26.64% | |
| 5Y Return (annualized) | +12.73% | +15.36% | |
| Volatility (annualized) | 12.2% | 30.6% | |
| Max Drawdown | -31.4% | -83.0% | |
| Fund Family | Xtrackers ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 2014 | Mar 10, 1999 |
DBAW vs QQQ Performance
Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW) is a ETF from Xtrackers ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DBAW returned +29.76% while QQQ returned +26.68%. Year to date, DBAW is up 16.56% versus a gain of 19.52% for QQQ.
Over three years, DBAW compounded at +21.77% per year against +26.64% for QQQ; over five years the annualized figures are +12.73% and +15.36% respectively. Across the full 13-year window we track, QQQ has the edge at +13.14% annualized vs +7.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.2% for DBAW. 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 -31.4% for DBAW 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DBAW charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, DBAW currently yields 1.73% against 0.44% for QQQ.
Holdings Overlap
DBAW and QQQ share 4 holdings out of 1849 unique holdings combined, representing a 0.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DBAW or QQQ?
DBAW has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, DBAW or QQQ?
Over the past year DBAW returned +29.76% vs +26.68% for QQQ, so DBAW leads on 1-year performance. Over the longest common window we track (13 years), DBAW annualized +7.77% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, DBAW or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.2% for DBAW. Worst drawdown: DBAW -31.4% vs QQQ -83.0%.
Should I hold both DBAW and QQQ?
DBAW and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DBAW and QQQ?
DBAW and QQQ share 4 common holdings with a 0.6% weight overlap. Combined, they hold 1849 unique securities.
Which pays a higher dividend, DBAW or QQQ?
DBAW yields 1.73% while QQQ yields 0.44%, so DBAW currently pays the higher dividend yield.
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