DFAX vs QQQ
Dimensional World ex US Core Equity 2 ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DFAX delivered stronger 1-year returns. DFAX offers more diversification with 10,538 holdings.
Side-by-Side Comparison
| Metric | DFAX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.18% | |
| AUM | $11.9B | $455.8B | |
| Dividend Yield | 2.34% | 0.41% | |
| Holdings | 10,538 | 108 | |
| YTD Return | +16.19% | +19.68% | |
| 1Y Return | +27.80% | +26.75% | |
| 3Y Return (annualized) | +21.13% | +26.25% | |
| 5Y Return (annualized) | +10.38% | +15.39% | |
| Volatility (annualized) | 15.3% | 30.6% | |
| Max Drawdown | -28.1% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 6, 2008 | Mar 10, 1999 |
DFAX vs QQQ Performance
Dimensional World ex US Core Equity 2 ETF (DFAX) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFAX returned +27.80% while QQQ returned +26.75%. Year to date, DFAX is up 16.19% versus a gain of 19.68% for QQQ.
Over three years, DFAX compounded at +21.13% per year against +26.25% for QQQ; over five years the annualized figures are +10.38% and +15.39% respectively. Across the full 5-year window we track, QQQ has the edge at +13.15% annualized vs +10.38%. 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 15.3% for DFAX. 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 -28.1% for DFAX 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFAX 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, DFAX currently yields 2.34% against 0.41% for QQQ.
Holdings Overlap
DFAX and QQQ share 6 holdings out of 10228 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFAX or QQQ?
DFAX 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, DFAX or QQQ?
Over the past year DFAX returned +27.80% vs +26.75% for QQQ, so DFAX leads on 1-year performance. Over the longest common window we track (5 years), DFAX annualized +10.38% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFAX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.3% for DFAX. Worst drawdown: DFAX -28.1% vs QQQ -83.0%.
Should I hold both DFAX and QQQ?
DFAX and QQQ have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAX and QQQ?
DFAX and QQQ share 6 common holdings with a 0.8% weight overlap. Combined, they hold 10228 unique securities.
Which pays a higher dividend, DFAX or QQQ?
DFAX yields 2.34% while QQQ yields 0.41%, so DFAX currently pays the higher dividend yield.
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