DFCA vs QQQ
Dimensional California Municipal Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | DFCA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.18% | |
| AUM | $707M | $455.8B | |
| Dividend Yield | 2.73% | 0.41% | |
| Holdings | 434 | 108 | |
| YTD Return | +0.67% | +18.20% | |
| 1Y Return | +3.71% | +27.63% | |
| 3Y Return (annualized) | +2.75% | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 3.2% | 30.6% | |
| Max Drawdown | -3.3% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 26, 2023 | Mar 10, 1999 |
DFCA vs QQQ Performance
Dimensional California Municipal Bond ETF (DFCA) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFCA returned +3.71% while QQQ returned +27.63%. Year to date, DFCA is up 0.67% versus a gain of 18.20% for QQQ.
Over three years, DFCA compounded at +2.75% per year against +25.54% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.11% annualized vs +2.51%. 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 3.2% for DFCA. 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 -3.3% for DFCA 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFCA charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, DFCA currently yields 2.73% against 0.41% for QQQ.
Holdings Overlap
DFCA and QQQ share 0 holdings out of 191 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, DFCA or QQQ?
DFCA has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, DFCA or QQQ?
Over the past year DFCA returned +3.71% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), DFCA annualized +2.51% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFCA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.2% for DFCA. Worst drawdown: DFCA -3.3% vs QQQ -83.0%.
Should I hold both DFCA and QQQ?
DFCA and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFCA and QQQ?
DFCA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 191 unique securities.
Which pays a higher dividend, DFCA or QQQ?
DFCA yields 2.73% while QQQ yields 0.41%, so DFCA currently pays the higher dividend yield.
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