DFIC vs QQQ
Dimensional International Core Equity 2 ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. DFIC offers more diversification with 3969 holdings.
Side-by-Side Comparison
| Metric | DFIC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.18% | |
| AUM | $14.5B | $455.8B | |
| Dividend Yield | 2.43% | 0.41% | |
| Holdings | 4,111 | 108 | |
| YTD Return | +12.56% | +17.46% | |
| 1Y Return | +25.01% | +26.02% | |
| 3Y Return (annualized) | +19.94% | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 16.0% | 30.6% | |
| Max Drawdown | -24.4% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 23, 2022 | Mar 10, 1999 |
DFIC vs QQQ Performance
Dimensional International Core Equity 2 ETF (DFIC) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFIC returned +25.01% while QQQ returned +26.02%. Year to date, DFIC is up 12.56% versus a gain of 17.46% for QQQ.
Over three years, DFIC compounded at +19.94% per year against +25.51% for QQQ. Across the full 4-year window we track, DFIC has the edge at +13.27% annualized vs +13.08%. 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 16.0% for DFIC. 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 -24.4% for DFIC 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFIC charges 0.22% per year while QQQ charges 0.18%. On a $10,000 position that is $22 vs $18 annually, a gap of $4 per year that compounds over a long holding period. On income, DFIC currently yields 2.43% against 0.41% for QQQ.
Holdings Overlap
DFIC and QQQ share 5 holdings out of 4067 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFIC or QQQ?
DFIC has an expense ratio of 0.22% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, DFIC or QQQ?
Over the past year DFIC returned +25.01% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), DFIC annualized +13.27% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFIC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.0% for DFIC. Worst drawdown: DFIC -24.4% vs QQQ -83.0%.
Should I hold both DFIC and QQQ?
DFIC and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFIC and QQQ?
DFIC and QQQ share 5 common holdings with a 0.2% weight overlap. Combined, they hold 4067 unique securities.
Which pays a higher dividend, DFIC or QQQ?
DFIC yields 2.43% while QQQ yields 0.41%, so DFIC currently pays the higher dividend yield.
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