DFAC vs QQQ
Dimensional US Core Equity 2 ETF vs Invesco QQQ Trust, Series 1
Which is better, DFAC or QQQ?
Large Cap Blend against Large Cap Growth.
DFAC has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. DFAC is less concentrated, with 26.5% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DFAC | QQQ |
|---|---|---|
| Expense Ratio | 0.17%Best | 0.18% |
| AUM | $48.8B | $483.5B |
| Dividend Yield | 0.89% | 0.44% |
| Holdings | 2,554 | 107 |
| YTD Return | +14.44% | +21.22%Best |
| 1Y Return | +18.01% | +23.58%Best |
| 3Y Return (annualized) | +21.09% | +28.18%Best |
| 5Y Return (annualized) | +12.57% | +15.82%Best |
| Volatility (annualized) | 15.6%Best | 20.6% |
| Max Drawdown | -23.1%Best | -35.1% |
| $10,000 over 5 years | $18,076 | $20,841Best |
| Top 10 Weight | 26.5%Best | 46.5% |
| Fund Family | Dimensional | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Oct 4, 2007 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jun 14, 2021 to Sep 21, 2026 (5.3 years).
DFAC vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.3 years both funds cover.
DFAC vs QQQ Performance
Dimensional US Core Equity 2 ETF (DFAC) is an ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DFAC returned +18.01% while QQQ returned +23.58%. Year to date, DFAC is up 14.44% versus a gain of 21.22% for QQQ.
Over three years, DFAC compounded at +21.09% per year against +28.18% for QQQ; over five years the annualized figures are +12.57% and +15.82% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.6% compared with 15.6% for DFAC. 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 -23.1% for DFAC and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAC charges 0.17% per year while QQQ charges 0.18%. On a $10,000 position that is $17 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, DFAC currently yields 0.89% against 0.44% for QQQ.
Holdings Overlap
35.8% of DFAC's money is in holdings QQQ also owns. 95.3% of QQQ's money is in holdings DFAC also owns.
Most of QQQ is already inside DFAC. Owning both mostly buys the same companies twice.
91 positions in common, counted across the 2,504 positions we hold weights for in DFAC and 102 in QQQ, against full books of 2,554 and 107.
What only one of them owns
Our book lists 5 positions for QQQ that do not appear in our book for DFAC (2.2% of the fund), and 1,376 for DFAC that do not appear in QQQ (61.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in DFAC | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 5.68% | 8.44% | 2.76% |
| AAPLApple, Inc | 5.15% | 7.27% | 2.12% |
| MSFTMicrosoft Corp | 4.73% | 5.76% | 1.03% |
| AMZNAmazon.Com Inc | 2.96% | 4.67% | 1.71% |
| MUMicron Technology, Inc. | 1.25% | 4.43% | 3.18% |
| GOOGLAlphabet Inc,class A | 1.57% | 3.36% | 1.79% |
| METAMeta Platforms Inc | 1.74% | 2.78% | 1.04% |
| AVGOBroadcom Inc | 1.33% | 3.16% | 1.83% |
| GOOGAlphabet Inc | 0.99% | 3.13% | 2.14% |
| AMDAdvanced Micro Devices Inc | 0.19% | 3.45% | 3.26% |
95.3% of QQQ is already inside DFAC.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFAC or QQQ?
DFAC has an expense ratio of 0.17% while QQQ charges 0.18%. DFAC is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, DFAC or QQQ?
Over the past year DFAC returned +18.01% vs +23.58% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFAC or QQQ?
QQQ has been the more volatile fund at 20.6% annualized versus 15.6% for DFAC. Worst drawdown: DFAC -23.1% vs QQQ -35.1%.
Should I hold both DFAC and QQQ?
DFAC and QQQ have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between DFAC and QQQ?
95.3% of QQQ's money is in holdings DFAC also owns. 95.3% of QQQ's is in holdings DFAC also owns. They hold 91 positions in common, counted across the 2,504 positions we hold weights for in DFAC and 102 in QQQ.
Which pays a higher dividend, DFAC or QQQ?
DFAC yields 0.89% while QQQ yields 0.44%, so DFAC currently pays the higher dividend yield.
Is QQQ better than DFAC?
DFAC has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. DFAC is less concentrated, with 26.5% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.