DEEF vs QQQ
Xtrackers FTSE Developed ex US Multifactor ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. DEEF offers more diversification with 1,244 holdings.
Side-by-Side Comparison
| Metric | DEEF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.24% | 0.18% | |
| AUM | $57M | $496.3B | |
| Dividend Yield | 3.38% | 0.44% | |
| Holdings | 1,244 | 108 | |
| YTD Return | +13.10% | +17.30% | |
| 1Y Return | +19.99% | +24.93% | |
| 3Y Return (annualized) | +19.06% | +26.19% | |
| 5Y Return (annualized) | +8.24% | +15.34% | |
| Volatility (annualized) | 15.0% | 30.6% | |
| Max Drawdown | -40.6% | -83.0% | |
| Fund Family | Xtrackers ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 24, 2015 | Mar 10, 1999 |
DEEF vs QQQ Performance
Xtrackers FTSE Developed ex US Multifactor ETF (DEEF) is a ETF from Xtrackers ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DEEF returned +19.99% while QQQ returned +24.93%. Year to date, DEEF is up 13.10% versus a gain of 17.30% for QQQ.
Over three years, DEEF compounded at +19.06% per year against +26.19% for QQQ; over five years the annualized figures are +8.24% and +15.34% respectively. Across the full 11-year window we track, QQQ has the edge at +13.06% annualized vs +6.50%. 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 15.0% for DEEF. 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 -40.6% for DEEF 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DEEF charges 0.24% per year while QQQ charges 0.18%. On a $10,000 position that is $24 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, DEEF currently yields 3.38% against 0.44% for QQQ.
Holdings Overlap
DEEF and QQQ share 1 holdings out of 1329 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 DEEF | Weight in QQQ | Difference |
|---|---|---|---|
| CCEP:LN | 0.06% | 0.21% | 0.15% |
Frequently Asked Questions
Which is cheaper, DEEF or QQQ?
DEEF has an expense ratio of 0.24% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, DEEF or QQQ?
Over the past year DEEF returned +19.99% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), DEEF annualized +6.50% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, DEEF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.0% for DEEF. Worst drawdown: DEEF -40.6% vs QQQ -83.0%.
Should I hold both DEEF and QQQ?
DEEF and QQQ have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DEEF and QQQ?
DEEF and QQQ share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1329 unique securities.
Which pays a higher dividend, DEEF or QQQ?
DEEF yields 3.38% while QQQ yields 0.44%, so DEEF currently pays the higher dividend yield.
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