DFAS vs QQQ
Dimensional US Small Cap ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DFAS delivered stronger 1-year returns. DFAS offers more diversification with 2078 holdings.
Side-by-Side Comparison
| Metric | DFAS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.26% | 0.18% | |
| AUM | $15.3B | $455.8B | |
| Dividend Yield | 0.96% | 0.41% | |
| Holdings | 2,102 | 108 | |
| YTD Return | +19.26% | +17.46% | |
| 1Y Return | +31.14% | +26.02% | |
| 3Y Return (annualized) | +15.45% | +25.51% | |
| 5Y Return (annualized) | +8.83% | +15.12% | |
| Volatility (annualized) | 19.1% | 30.6% | |
| Max Drawdown | -26.1% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 15, 1998 | Mar 10, 1999 |
DFAS vs QQQ Performance
Dimensional US Small Cap ETF (DFAS) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFAS returned +31.14% while QQQ returned +26.02%. Year to date, DFAS is up 19.26% versus a gain of 17.46% for QQQ.
Over three years, DFAS compounded at +15.45% per year against +25.51% for QQQ; over five years the annualized figures are +8.83% and +15.12% respectively. Across the full 5-year window we track, QQQ has the edge at +13.08% annualized vs +8.60%. 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 19.1% for DFAS. 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 -26.1% for DFAS 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFAS charges 0.26% per year while QQQ charges 0.18%. On a $10,000 position that is $26 vs $18 annually, a gap of $8 per year that compounds over a long holding period. On income, DFAS currently yields 0.96% against 0.41% for QQQ.
Holdings Overlap
DFAS and QQQ share 0 holdings out of 2181 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, DFAS or QQQ?
DFAS has an expense ratio of 0.26% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, DFAS or QQQ?
Over the past year DFAS returned +31.14% vs +26.02% for QQQ, so DFAS leads on 1-year performance. Over the longest common window we track (5 years), DFAS annualized +8.60% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFAS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.1% for DFAS. Worst drawdown: DFAS -26.1% vs QQQ -83.0%.
Should I hold both DFAS and QQQ?
DFAS and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAS and QQQ?
DFAS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2181 unique securities.
Which pays a higher dividend, DFAS or QQQ?
DFAS yields 0.96% while QQQ yields 0.41%, so DFAS currently pays the higher dividend yield.
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