DFEV vs QQQ
Dimensional Emerging Markets Value ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DFEV delivered stronger 1-year returns. DFEV offers more diversification with 3498 holdings.
Side-by-Side Comparison
| Metric | DFEV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.18% | |
| AUM | $2.0B | $455.8B | |
| Dividend Yield | 2.04% | 0.41% | |
| Holdings | 3,595 | 108 | |
| YTD Return | +20.83% | +18.20% | |
| 1Y Return | +37.99% | +27.63% | |
| 3Y Return (annualized) | +22.29% | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 16.7% | 30.6% | |
| Max Drawdown | -18.5% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 26, 2022 | Mar 10, 1999 |
DFEV vs QQQ Performance
Dimensional Emerging Markets Value ETF (DFEV) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFEV returned +37.99% while QQQ returned +27.63%. Year to date, DFEV is up 20.83% versus a gain of 18.20% for QQQ.
Over three years, DFEV compounded at +22.29% per year against +25.54% for QQQ. Across the full 4-year window we track, DFEV has the edge at +15.99% annualized vs +13.11%. 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 16.7% for DFEV. 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 -18.5% for DFEV 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
DFEV charges 0.43% per year while QQQ charges 0.18%. On a $10,000 position that is $43 vs $18 annually, a gap of $25 per year that compounds over a long holding period. On income, DFEV currently yields 2.04% against 0.41% for QQQ.
Holdings Overlap
DFEV and QQQ share 0 holdings out of 3601 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, DFEV or QQQ?
DFEV has an expense ratio of 0.43% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, DFEV or QQQ?
Over the past year DFEV returned +37.99% vs +27.63% for QQQ, so DFEV leads on 1-year performance. Over the longest common window we track (4 years), DFEV annualized +15.99% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFEV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.7% for DFEV. Worst drawdown: DFEV -18.5% vs QQQ -83.0%.
Should I hold both DFEV and QQQ?
DFEV 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 DFEV and QQQ?
DFEV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3601 unique securities.
Which pays a higher dividend, DFEV or QQQ?
DFEV yields 2.04% while QQQ yields 0.41%, so DFEV currently pays the higher dividend yield.
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