DFEM vs QQQ
Dimensional Emerging Markets Core Equity 2 ETF vs Invesco QQQ Trust, Series 1
Which is better, DFEM or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. DFEM led over 1Y, QQQ over 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 | DFEM | QQQ |
|---|---|---|
| Expense Ratio | 0.39% | 0.18%Best |
| AUM | $9.7B | $483.5B |
| Dividend Yield | 1.84% | 0.44% |
| Holdings | 6,512 | 107 |
| YTD Return | +22.09%Best | +21.22% |
| 1Y Return | +28.83%Best | +23.58% |
| 3Y Return (annualized) | +22.88% | +28.18%Best |
| 5Y Return (annualized) | - | +15.82% |
| Volatility (annualized) | 17.4%Best | 19.9% |
| Max Drawdown | -20.8%Best | -22.8% |
| $10,000 over 4.4 years | $18,082 | $24,022Best |
| Fund Family | Dimensional | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Apr 26, 2022 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4.4 years row, are measured over the window both funds cover: Apr 27, 2022 to Sep 21, 2026 (4.4 years).
DFEM 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 4.4 years both funds cover.
DFEM vs QQQ Performance
Dimensional Emerging Markets Core Equity 2 ETF (DFEM) is an ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DFEM returned +28.83% while QQQ returned +23.58%. Year to date, DFEM is up 22.09% versus a gain of 21.22% for QQQ.
Over three years, DFEM compounded at +22.88% per year against +28.18% for QQQ. Across the full 4-year window we track, QQQ has the edge at +22.04% annualized vs +14.41%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 17.4% for DFEM. 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 -20.8% for DFEM 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 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
DFEM charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, DFEM currently yields 1.84% against 0.44% for QQQ.
Holdings Overlap
At least 0.3% of QQQ's money is in holdings DFEM also owns.
Stated as a floor: for DFEM, our book for it covers 83.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 6,637 positions we hold weights for in DFEM and 102 in QQQ, against full books of 6,512 and 107.
Top Shared Holdings
| Stock | Weight in DFEM | Weight in QQQ | Difference |
|---|---|---|---|
| PDD:IEPdd Holdings Inc. | 0.23% | 0.27% | 0.04% |
You are not choosing between two funds in isolation.
Whichever of DFEM 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, DFEM or QQQ?
DFEM has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, DFEM or QQQ?
Over the past year DFEM returned +28.83% vs +23.58% for QQQ, so DFEM leads on 1-year performance. Over the longest common window we track (4 years), DFEM annualized +14.41% vs +22.04% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFEM or QQQ?
QQQ has been the more volatile fund at 19.9% annualized versus 17.4% for DFEM. Worst drawdown: DFEM -20.8% vs QQQ -22.8%.
Should I hold both DFEM and QQQ?
DFEM and QQQ have a monthly-return correlation of 0.68, 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, DFEM or QQQ?
DFEM yields 1.84% while QQQ yields 0.44%, so DFEM currently pays the higher dividend yield.
Is QQQ better than DFEM?
QQQ has a lower expense ratio. DFEM led over 1Y, QQQ over 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.