DFIP vs QQQ
Dimensional Inflation-Protected Securities ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
DFIP has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | DFIP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.11% | 0.18% | |
| AUM | $1.1B | $455.8B | |
| Dividend Yield | 4.64% | 0.41% | |
| Holdings | 21 | 108 | |
| YTD Return | +0.58% | +17.46% | |
| 1Y Return | +1.53% | +26.02% | |
| 3Y Return (annualized) | +4.26% | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 6.8% | 30.6% | |
| Max Drawdown | -15.0% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2021 | Mar 10, 1999 |
DFIP vs QQQ Performance
Dimensional Inflation-Protected Securities ETF (DFIP) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFIP returned +1.53% while QQQ returned +26.02%. Year to date, DFIP is up 0.58% versus a gain of 17.46% for QQQ.
Over three years, DFIP compounded at +4.26% per year against +25.51% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.08% annualized vs +0.05%. 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 6.8% for DFIP. 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 -15.0% for DFIP 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
DFIP charges 0.11% per year while QQQ charges 0.18%. On a $10,000 position that is $11 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, DFIP currently yields 4.64% against 0.41% for QQQ.
Holdings Overlap
DFIP and QQQ share 0 holdings out of 122 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, DFIP or QQQ?
DFIP has an expense ratio of 0.11% while QQQ charges 0.18%. DFIP is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, DFIP or QQQ?
Over the past year DFIP returned +1.53% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), DFIP annualized +0.05% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFIP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.8% for DFIP. Worst drawdown: DFIP -15.0% vs QQQ -83.0%.
Should I hold both DFIP and QQQ?
DFIP 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 DFIP and QQQ?
DFIP and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 122 unique securities.
Which pays a higher dividend, DFIP or QQQ?
DFIP yields 4.64% while QQQ yields 0.41%, so DFIP currently pays the higher dividend yield.
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