DFJ vs QQQ
WisdomTree Japan SmallCap Dividend Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DFJ delivered stronger 1-year returns. DFJ offers more diversification with 794 holdings.
Side-by-Side Comparison
| Metric | DFJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.18% | |
| AUM | $382M | $455.8B | |
| Dividend Yield | 2.65% | 0.41% | |
| Holdings | 804 | 108 | |
| YTD Return | +18.29% | +18.31% | |
| 1Y Return | +26.25% | +25.37% | |
| 3Y Return (annualized) | +21.24% | +25.79% | |
| 5Y Return (annualized) | +11.21% | +15.20% | |
| Volatility (annualized) | 14.3% | 30.6% | |
| Max Drawdown | -46.7% | -83.0% | |
| Fund Family | WisdomTree Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Mar 10, 1999 |
DFJ vs QQQ Performance
WisdomTree Japan SmallCap Dividend Fund (DFJ) is a ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFJ returned +26.25% while QQQ returned +25.37%. Year to date, DFJ is up 18.29% versus a gain of 18.31% for QQQ.
Over three years, DFJ compounded at +21.24% per year against +25.79% for QQQ; over five years the annualized figures are +11.21% and +15.20% respectively. Across the full 20-year window we track, QQQ has the edge at +13.10% annualized vs +4.86%. 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 14.3% for DFJ. 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 -46.7% for DFJ 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFJ charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, DFJ currently yields 2.65% against 0.41% for QQQ.
Holdings Overlap
DFJ and QQQ share 0 holdings out of 897 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, DFJ or QQQ?
DFJ has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, DFJ or QQQ?
Over the past year DFJ returned +26.25% vs +25.37% for QQQ, so DFJ leads on 1-year performance. Over the longest common window we track (20 years), DFJ annualized +4.86% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.3% for DFJ. Worst drawdown: DFJ -46.7% vs QQQ -83.0%.
Should I hold both DFJ and QQQ?
DFJ and QQQ have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFJ and QQQ?
DFJ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 897 unique securities.
Which pays a higher dividend, DFJ or QQQ?
DFJ yields 2.65% while QQQ yields 0.41%, so DFJ currently pays the higher dividend yield.
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