DFAI vs QQQ
Dimensional International Core Equity Market ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ delivered stronger 1-year returns. DFAI offers more diversification with 3,919 holdings.
Side-by-Side Comparison
| Metric | DFAI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.18% | |
| AUM | $18.2B | $496.3B | |
| Dividend Yield | 2.30% | 0.44% | |
| Holdings | 3,919 | 108 | |
| YTD Return | +13.20% | +16.23% | |
| 1Y Return | +23.06% | +26.23% | |
| 3Y Return (annualized) | +20.47% | +25.75% | |
| 5Y Return (annualized) | +10.88% | +14.78% | |
| Volatility (annualized) | 14.5% | 30.6% | |
| Max Drawdown | -27.4% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 17, 2020 | Mar 10, 1999 |
DFAI vs QQQ Performance
Dimensional International Core Equity Market ETF (DFAI) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFAI returned +23.06% while QQQ returned +26.23%. Year to date, DFAI is up 13.20% versus a gain of 16.23% for QQQ.
Over three years, DFAI compounded at +20.47% per year against +25.75% for QQQ; over five years the annualized figures are +10.88% and +14.78% respectively. Across the full 6-year window we track, QQQ has the edge at +13.02% annualized vs +12.65%. 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 14.5% for DFAI. 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 -27.4% for DFAI 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFAI charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, DFAI currently yields 2.30% against 0.44% for QQQ.
Holdings Overlap
DFAI and QQQ share 3 holdings out of 3717 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFAI or QQQ?
DFAI has an expense ratio of 0.18% while QQQ charges 0.18%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, DFAI or QQQ?
Over the past year DFAI returned +23.06% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), DFAI annualized +12.65% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFAI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.5% for DFAI. Worst drawdown: DFAI -27.4% vs QQQ -83.0%.
Should I hold both DFAI and QQQ?
DFAI and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAI and QQQ?
DFAI and QQQ share 3 common holdings with a 0.9% weight overlap. Combined, they hold 3717 unique securities.
Which pays a higher dividend, DFAI or QQQ?
DFAI yields 2.30% while QQQ yields 0.44%, so DFAI currently pays the higher dividend yield.
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