DFAR vs QQQ
Dimensional US Real Estate ETF vs Invesco QQQ Trust, Series 1
Which is better, DFAR or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 49.9%.
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 | DFAR | QQQ |
|---|---|---|
| Expense Ratio | 0.19% | 0.18%Best |
| AUM | $1.7B | $483.5B |
| Dividend Yield | 2.71% | 0.44% |
| Holdings | 124 | 107 |
| YTD Return | +10.07% | +17.95%Best |
| 1Y Return | +8.54% | +21.77%Best |
| 3Y Return (annualized) | +9.48% | +25.63%Best |
| 5Y Return (annualized) | - | +15.24% |
| Volatility (annualized) | 18.3%Best | 20.9% |
| Max Drawdown | -32.3% | -29.6%Best |
| $10,000 over 4.6 years | $11,198 | $21,917Best |
| Top 10 Weight | 49.9% | 46.5%Best |
| Fund Family | Dimensional | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Feb 23, 2022 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 4.6 years row, are measured over the window both funds cover: Feb 24, 2022 to Sep 18, 2026 (4.6 years).
DFAR 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 4.6 years both funds cover.
DFAR vs QQQ Performance
Dimensional US Real Estate ETF (DFAR) is an ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DFAR returned +8.54% while QQQ returned +21.77%. Year to date, DFAR is up 10.07% versus a gain of 17.95% for QQQ.
Over three years, DFAR compounded at +9.48% per year against +25.63% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 18.3% for DFAR. 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 -32.3% for DFAR and -29.6% 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 0.61. They move together some of the time, and apart the rest.
Fees and Cost Over Time
DFAR charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, DFAR currently yields 2.71% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 120 holdings in DFAR and 102 in QQQ, totalling 99.8% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 120 positions we hold weights for in DFAR and 102 in QQQ, against full books of 124 and 107.
What only one of them owns
Measured across the 120 and 102 positions we hold weights for.
QQQ holds 96 positions DFAR does not, 97.5% of the fund.
Largest: NVDA 8.44%, AAPL 7.27%, MSFT 5.76%, AMZN 4.67%, MU 4.43%
You are not choosing between two funds in isolation.
Whichever of DFAR and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFAR or QQQ?
DFAR has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, DFAR or QQQ?
Over the past year DFAR returned +8.54% vs +21.77% 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, DFAR or QQQ?
QQQ has been the more volatile fund at 20.9% annualized versus 18.3% for DFAR. Worst drawdown: DFAR -32.3% vs QQQ -29.6%.
Should I hold both DFAR and QQQ?
DFAR and QQQ have a monthly-return correlation of 0.61, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, DFAR or QQQ?
DFAR yields 2.71% while QQQ yields 0.44%, so DFAR currently pays the higher dividend yield.
Is QQQ better than DFAR?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 49.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.