DFAT vs QQQ
Dimensional US Targeted Value ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DFAT delivered stronger 1-year returns. DFAT offers more diversification with 1267 holdings.
Side-by-Side Comparison
| Metric | DFAT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.18% | |
| AUM | $14.5B | $455.8B | |
| Dividend Yield | 1.37% | 0.41% | |
| Holdings | 1,283 | 108 | |
| YTD Return | +20.99% | +18.31% | |
| 1Y Return | +30.48% | +25.37% | |
| 3Y Return (annualized) | +15.75% | +25.79% | |
| 5Y Return (annualized) | +11.28% | +15.20% | |
| Volatility (annualized) | 19.9% | 30.6% | |
| Max Drawdown | -26.1% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 11, 1998 | Mar 10, 1999 |
DFAT vs QQQ Performance
Dimensional US Targeted Value ETF (DFAT) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFAT returned +30.48% while QQQ returned +25.37%. Year to date, DFAT is up 20.99% versus a gain of 18.31% for QQQ.
Over three years, DFAT compounded at +15.75% per year against +25.79% for QQQ; over five years the annualized figures are +11.28% and +15.20% respectively. Across the full 5-year window we track, QQQ has the edge at +13.10% annualized vs +10.86%. 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 19.9% for DFAT. 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 DFAT 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFAT charges 0.28% per year while QQQ charges 0.18%. On a $10,000 position that is $28 vs $18 annually, a gap of $10 per year that compounds over a long holding period. On income, DFAT currently yields 1.37% against 0.41% for QQQ.
Holdings Overlap
DFAT and QQQ share 0 holdings out of 1370 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, DFAT or QQQ?
DFAT has an expense ratio of 0.28% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, DFAT or QQQ?
Over the past year DFAT returned +30.48% vs +25.37% for QQQ, so DFAT leads on 1-year performance. Over the longest common window we track (5 years), DFAT annualized +10.86% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFAT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.9% for DFAT. Worst drawdown: DFAT -26.1% vs QQQ -83.0%.
Should I hold both DFAT and QQQ?
DFAT and QQQ have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAT and QQQ?
DFAT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1370 unique securities.
Which pays a higher dividend, DFAT or QQQ?
DFAT yields 1.37% while QQQ yields 0.41%, so DFAT currently pays the higher dividend yield.
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