DBC vs QQQ

Quick Verdict

QQQ has a lower expense ratio. DBC delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: DBCMore Diversified: QQQ

Side-by-Side Comparison

MetricDBCQQQWinner
Expense Ratio0.84%0.18%
AUM$1.7B$455.8B
Dividend Yield2.80%0.41%
Holdings33108
YTD Return+33.68%+17.85%
1Y Return+41.46%+26.45%
3Y Return (annualized)+11.87%+26.07%
5Y Return (annualized)+12.51%+15.16%
Volatility (annualized)18.7%30.6%
Max Drawdown-76.4%-83.0%
Fund FamilyInvesco (US)Invesco (US)
CategoryCommodityEquity
InceptionFeb 3, 2006Mar 10, 1999

DBC vs QQQ Performance

Invesco DB Commodity Index Tracking Fund (DBC) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DBC returned +41.46% while QQQ returned +26.45%. Year to date, DBC is up 33.68% versus a gain of 17.85% for QQQ.

Over three years, DBC compounded at +11.87% per year against +26.07% for QQQ; over five years the annualized figures are +12.51% and +15.16% respectively. Across the full 21-year window we track, QQQ has the edge at +13.09% annualized vs +2.13%. 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 18.7% for DBC. 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 -76.4% for DBC 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DBC charges 0.84% per year while QQQ charges 0.18%. On a $10,000 position that is $84 vs $18 annually, a gap of $66 per year that compounds over a long holding period. On income, DBC currently yields 2.80% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

DBC and QQQ share 0 holdings out of 105 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, DBC or QQQ?

DBC has an expense ratio of 0.84% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $66 per year of difference.

Which performed better, DBC or QQQ?

Over the past year DBC returned +41.46% vs +26.45% for QQQ, so DBC leads on 1-year performance. Over the longest common window we track (21 years), DBC annualized +2.13% vs +13.09% for QQQ. Past performance does not guarantee future results.

Which is riskier, DBC or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 18.7% for DBC. Worst drawdown: DBC -76.4% vs QQQ -83.0%.

Should I hold both DBC and QQQ?

DBC and QQQ have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DBC and QQQ?

DBC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.

Which pays a higher dividend, DBC or QQQ?

DBC yields 2.80% while QQQ yields 0.41%, so DBC currently pays the higher dividend yield.

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