DFAW vs QQQ
Dimensional World Equity ETF vs Invesco QQQ Trust, Series 1
Which is better, DFAW or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window.
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 | DFAW | QQQ |
|---|---|---|
| Expense Ratio | 0.24% | 0.18%Best |
| AUM | $1.7B | $498.6B |
| Dividend Yield | 1.20% | 0.42% |
| Holdings | 12 | 321 |
| YTD Return | +13.48% | +22.67%Best |
| 1Y Return | +17.80% | +24.33%Best |
| 3Y Return (annualized) | +21.71% | +29.05%Best |
| 5Y Return (annualized) | - | +17.00% |
| Volatility (annualized) | 12.0%Best | 17.0% |
| Max Drawdown | -16.9%Best | -22.8% |
| $10,000 over 3 years | $17,663 | $21,392Best |
| Top 10 Weight | - | 47.2% |
| Fund Family | Dimensional | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Sep 26, 2023 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Sep 27, 2023 to Oct 2, 2026 (3 years).
DFAW 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 3 years both funds cover.
DFAW vs QQQ Performance
Dimensional World Equity ETF (DFAW) is an ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DFAW returned +17.80% while QQQ returned +24.33%. Year to date, DFAW is up 13.48% versus a gain of 22.67% for QQQ.
Over three years, DFAW compounded at +21.71% per year against +29.05% 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 17.0% compared with 12.0% for DFAW. 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 -16.9% for DFAW and -22.8% 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAW charges 0.24% per year while QQQ charges 0.18%. On a $10,000 position that is $24 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, DFAW currently yields 1.20% against 0.42% for QQQ.
Holdings Overlap
We hold position weights for 5 holdings in DFAW and 102 in QQQ, totalling 99.9% 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 5 positions we hold weights for in DFAW and 102 in QQQ, against full books of 12 and 321.
What only one of them owns
Our book lists 96 positions for QQQ that do not appear in our book for DFAW (97.8% of the fund), and 5 for DFAW that do not appear in QQQ (99.9%).
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.
You are not choosing between two funds in isolation.
Whichever of DFAW 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, DFAW or QQQ?
DFAW has an expense ratio of 0.24% while QQQ charges 0.18%. QQQ is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, DFAW or QQQ?
Over the past year DFAW returned +17.80% vs +24.33% 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, DFAW or QQQ?
QQQ has been the more volatile fund at 17.0% annualized versus 12.0% for DFAW. Worst drawdown: DFAW -16.9% vs QQQ -22.8%.
Should I hold both DFAW and QQQ?
DFAW and QQQ have a monthly-return correlation of 0.75, 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, DFAW or QQQ?
DFAW yields 1.20% while QQQ yields 0.42%, so DFAW currently pays the higher dividend yield.
Is QQQ better than DFAW?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.