DFIP vs QQQ
Dimensional Inflation-Protected Securities ETF vs Invesco QQQ Trust, Series 1
Which is better, DFIP or QQQ?
Inflation Protection against Large Cap Growth.
DFIP has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 82.2%.
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 | DFIP | QQQ |
|---|---|---|
| Expense Ratio | 0.11%Best | 0.18% |
| AUM | $1.1B | $483.5B |
| Dividend Yield | 5.82% | 0.44% |
| Holdings | 21 | 107 |
| YTD Return | -0.76% | +17.21%Best |
| 1Y Return | -1.46% | +22.10%Best |
| 3Y Return (annualized) | +3.84% | +25.27%Best |
| 5Y Return (annualized) | - | +14.60% |
| Volatility (annualized) | 6.8%Best | 21.0% |
| Max Drawdown | -15.0%Best | -35.1% |
| $10,000 over 4.8 years | $9,890 | $18,481Best |
| Top 10 Weight | 82.2% | 46.5%Best |
| Fund Family | Dimensional | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Inflation Protection | Large Cap Growth |
| Inception | Nov 15, 2021 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 4.8 years row, are measured over the window both funds cover: Nov 16, 2021 to Sep 17, 2026 (4.8 years).
DFIP 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 4.8 years both funds cover.
DFIP vs QQQ Performance
Dimensional Inflation-Protected Securities ETF (DFIP) is an ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DFIP returned -1.46% while QQQ returned +22.10%. Year to date, DFIP is down 0.76% versus a gain of 17.21% for QQQ.
Over three years, DFIP compounded at +3.84% per year against +25.27% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 21.0% 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 -35.1% 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 0.61. They move together some of the time, and apart the rest.
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 5.82% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 19 holdings in DFIP and 102 in QQQ, totalling 99.5% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 19 positions we hold weights for in DFIP and 102 in QQQ, against full books of 21 and 107.
What only one of them owns
Measured across the 19 and 102 positions we hold weights for.
QQQ holds 96 positions DFIP does not, 97.5% of the fund.
Largest: NVDA 8.44%, AAPL 7.27%, MSFT 5.76%, AMZN 4.67%, MU 4.43%
You are not choosing between two funds in isolation.
Whichever of DFIP 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, DFIP or QQQ?
DFIP has an expense ratio of 0.11% while QQQ charges 0.18%. DFIP is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, DFIP or QQQ?
Over the past year DFIP returned -1.46% vs +22.10% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFIP or QQQ?
QQQ has been the more volatile fund at 21.0% annualized versus 6.8% for DFIP. Worst drawdown: DFIP -15.0% vs QQQ -35.1%.
Should I hold both DFIP and QQQ?
DFIP and QQQ have a monthly-return correlation of 0.61, 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, DFIP or QQQ?
DFIP yields 5.82% while QQQ yields 0.44%, so DFIP currently pays the higher dividend yield.
Is QQQ better than DFIP?
DFIP has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 82.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.