DFCF vs QQQ
Dimensional Core Fixed Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
DFCF has a lower expense ratio. QQQ delivered stronger 1-year returns. DFCF offers more diversification with 1491 holdings.
Side-by-Side Comparison
| Metric | DFCF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.17% | 0.18% | |
| AUM | $10.9B | $455.8B | |
| Dividend Yield | 4.34% | 0.41% | |
| Holdings | 1,618 | 108 | |
| YTD Return | -0.18% | +17.85% | |
| 1Y Return | +2.51% | +26.45% | |
| 3Y Return (annualized) | +4.98% | +26.07% | |
| 5Y Return (annualized) | - | +15.16% | |
| Volatility (annualized) | 6.9% | 30.6% | |
| Max Drawdown | -19.6% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2021 | Mar 10, 1999 |
DFCF vs QQQ Performance
Dimensional Core Fixed Income ETF (DFCF) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFCF returned +2.51% while QQQ returned +26.45%. Year to date, DFCF is down 0.18% versus a gain of 17.85% for QQQ.
Over three years, DFCF compounded at +4.98% per year against +26.07% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.09% annualized vs -0.01%. 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 6.9% for DFCF. 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 -19.6% for DFCF 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFCF charges 0.17% per year while QQQ charges 0.18%. On a $10,000 position that is $17 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, DFCF currently yields 4.34% against 0.41% for QQQ.
Holdings Overlap
DFCF and QQQ share 0 holdings out of 1594 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, DFCF or QQQ?
DFCF has an expense ratio of 0.17% while QQQ charges 0.18%. DFCF is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, DFCF or QQQ?
Over the past year DFCF returned +2.51% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), DFCF annualized -0.01% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFCF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.9% for DFCF. Worst drawdown: DFCF -19.6% vs QQQ -83.0%.
Should I hold both DFCF and QQQ?
DFCF and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFCF and QQQ?
DFCF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1594 unique securities.
Which pays a higher dividend, DFCF or QQQ?
DFCF yields 4.34% while QQQ yields 0.41%, so DFCF currently pays the higher dividend yield.
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