DFIS vs QQQ
Dimensional International Small Cap ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. DFIS offers more diversification with 3438 holdings.
Side-by-Side Comparison
| Metric | DFIS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $5.7B | $455.8B | |
| Dividend Yield | 2.04% | 0.41% | |
| Holdings | 3,519 | 108 | |
| YTD Return | +12.07% | +17.46% | |
| 1Y Return | +22.99% | +26.02% | |
| 3Y Return (annualized) | +19.54% | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 17.4% | 30.6% | |
| Max Drawdown | -27.2% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 23, 2022 | Mar 10, 1999 |
DFIS vs QQQ Performance
Dimensional International Small Cap ETF (DFIS) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFIS returned +22.99% while QQQ returned +26.02%. Year to date, DFIS is up 12.07% versus a gain of 17.46% for QQQ.
Over three years, DFIS compounded at +19.54% per year against +25.51% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.08% annualized vs +11.56%. 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 17.4% for DFIS. 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 -27.2% for DFIS 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFIS 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, DFIS currently yields 2.04% against 0.41% for QQQ.
Holdings Overlap
DFIS and QQQ share 0 holdings out of 3541 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, DFIS or QQQ?
DFIS has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, DFIS or QQQ?
Over the past year DFIS returned +22.99% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), DFIS annualized +11.56% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFIS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.4% for DFIS. Worst drawdown: DFIS -27.2% vs QQQ -83.0%.
Should I hold both DFIS and QQQ?
DFIS and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFIS and QQQ?
DFIS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3541 unique securities.
Which pays a higher dividend, DFIS or QQQ?
DFIS yields 2.04% while QQQ yields 0.41%, so DFIS currently pays the higher dividend yield.
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