DFAU vs QQQ
Dimensional US Core Equity Market ETF vs Invesco QQQ Trust, Series 1
Which is better, DFAU or QQQ?
Large Cap Blend against Large Cap Growth.
DFAU has a lower expense ratio. DFAU led over 1Y, QQQ over 3Y, 5Y and the full window. DFAU is less concentrated, with 34.0% of the fund in its ten largest positions against 46.7%.
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 | DFAU | QQQ |
|---|---|---|
| Expense Ratio | 0.12%Best | 0.18% |
| AUM | $13.1B | $506.1B |
| Dividend Yield | 0.90% | 0.42% |
| Holdings | 2,124 | 321 |
| YTD Return | +12.05% | +13.00%Best |
| 1Y Return | +13.55%Best | +10.81% |
| 3Y Return (annualized) | +22.92% | +26.04%Best |
| 5Y Return (annualized) | +11.48% | +12.94%Best |
| Volatility (annualized) | 14.9%Best | 20.0% |
| Max Drawdown | -23.6%Best | -35.1% |
| $10,000 over 5 years | $17,218 | $18,375Best |
| Top 10 Weight | 34.0%Best | 46.7% |
| Fund Family | Dimensional | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Nov 17, 2020 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Nov 18, 2020 to Oct 30, 2026 (5.9 years).
DFAU 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 5.9 years both funds cover.
DFAU vs QQQ Performance
Dimensional US Core Equity Market ETF (DFAU) is an ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DFAU returned +13.55% while QQQ returned +10.81%. Year to date, DFAU is up 12.05% versus a gain of 13.00% for QQQ.
Over three years, DFAU compounded at +22.92% per year against +26.04% for QQQ; over five years the annualized figures are +11.48% and +12.94% respectively. Across the full 6-year window we track, QQQ has the edge at +16.35% annualized vs +14.71%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.0% compared with 14.9% for DFAU. 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 -23.6% for DFAU 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAU charges 0.12% per year while QQQ charges 0.18%. On a $10,000 position that is $12 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, DFAU currently yields 0.90% against 0.42% for QQQ.
Holdings Overlap
46.6% of DFAU's money is in holdings QQQ also owns. 93.4% of QQQ's money is in holdings DFAU also owns.
Most of QQQ is already inside DFAU. Owning both mostly buys the same companies twice.
90 positions in common, counted across the 2,205 positions we hold weights for in DFAU and 101 in QQQ, against full books of 2,124 and 321.
What only one of them owns
Our book lists 4 positions for QQQ that do not appear in our book for DFAU (3.8% of the fund), and 1,069 for DFAU that do not appear in QQQ (50.7%).
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 DFAU | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 6.99% | 8.33% | 1.34% |
| AAPLApple, Inc | 6.81% | 7.35% | 0.54% |
| MSFTMicrosoft Corp | 5.31% | 5.76% | 0.45% |
| AMZNAmazon.Com Inc | 3.34% | 4.07% | 0.73% |
| MUMicron Technology, Inc. | 1.61% | 5.02% | 3.41% |
| GOOGLAlphabet Inc | 2.56% | 3.05% | 0.49% |
| METAMeta Platforms Inc | 1.87% | 3.26% | 1.39% |
| AMDAdvanced Micro Devices Inc | 0.92% | 4.17% | 3.25% |
| GOOGAlphabet Inc. C | 2.11% | 2.85% | 0.74% |
| AVGOBroadcom Inc | 2.15% | 2.53% | 0.38% |
93.4% of QQQ is already inside DFAU.
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, DFAU or QQQ?
DFAU has an expense ratio of 0.12% while QQQ charges 0.18%. DFAU is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, DFAU or QQQ?
Over the past year DFAU returned +13.55% vs +10.81% for QQQ, so DFAU leads on 1-year performance. Over the longest common window we track (6 years), DFAU annualized +14.71% vs +16.35% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFAU or QQQ?
QQQ has been the more volatile fund at 20.0% annualized versus 14.9% for DFAU. Worst drawdown: DFAU -23.6% vs QQQ -35.1%.
Should I hold both DFAU and QQQ?
DFAU and QQQ have a monthly-return correlation of 0.88, 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 DFAU and QQQ?
93.4% of QQQ's money is in holdings DFAU also owns. 93.4% of QQQ's is in holdings DFAU also owns. They hold 90 positions in common, counted across the 2,205 positions we hold weights for in DFAU and 101 in QQQ.
Which pays a higher dividend, DFAU or QQQ?
DFAU yields 0.90% while QQQ yields 0.42%, so DFAU currently pays the higher dividend yield.
Is QQQ better than DFAU?
DFAU has a lower expense ratio. DFAU led over 1Y, QQQ over 3Y, 5Y and the full window. DFAU is less concentrated, with 34.0% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.