DFJ vs QQQ
WisdomTree Japan SmallCap Dividend Fund vs Invesco QQQ Trust, Series 1
Which is better, DFJ or QQQ?
Small Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. DFJ is less concentrated, with 5.9% of the fund in its ten largest positions against 46.5%.
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 | DFJ | QQQ |
|---|---|---|
| Expense Ratio | 0.58% | 0.18%Best |
| AUM | $437M | $483.5B |
| Dividend Yield | 2.43% | 0.44% |
| Holdings | 796 | 107 |
| YTD Return | +18.95%Best | +15.86% |
| 1Y Return | +22.35% | +22.63%Best |
| 3Y Return (annualized) | +20.02% | +24.15%Best |
| 5Y Return (annualized) | +10.10% | +14.16%Best |
| Volatility (annualized) | 14.3%Best | 18.6% |
| Max Drawdown | -46.7%Best | -53.5% |
| $10,000 over 5 years | $16,178 | $19,390Best |
| Top 10 Weight | 5.9%Best | 46.5% |
| Fund Family | WisdomTree Investments | Invesco (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Growth |
| Inception | Jun 16, 2006 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jun 16, 2006 to Sep 10, 2026 (20.2 years).
DFJ 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
DFJ vs QQQ Performance
WisdomTree Japan SmallCap Dividend Fund (DFJ) is an ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DFJ returned +22.35% while QQQ returned +22.63%. Year to date, DFJ is up 18.95% versus a gain of 15.86% for QQQ.
Over three years, DFJ compounded at +20.02% per year against +24.15% for QQQ; over five years the annualized figures are +10.10% and +14.16% respectively. Across the full 20-year window we track, QQQ has the edge at +15.69% annualized vs +4.87%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -53.5% 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 0.46. They move together some of the time, and apart the rest.
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 2.43% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 791 holdings in DFJ 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 791 positions we hold weights for in DFJ and 102 in QQQ, against full books of 796 and 107.
What only one of them owns
Our book lists 95 positions for QQQ that do not appear in our book for DFJ (97.0% of the fund), and 4 for DFJ that do not appear in QQQ (0.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of DFJ 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, DFJ or QQQ?
DFJ has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option, by $40 a year on a $10,000 investment.
Which performed better, DFJ or QQQ?
Over the past year DFJ returned +22.35% vs +22.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), DFJ annualized +4.87% vs +15.69% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFJ or QQQ?
QQQ has been the more volatile fund at 18.6% annualized versus 14.3% for DFJ. Worst drawdown: DFJ -46.7% vs QQQ -53.5%.
Should I hold both DFJ and QQQ?
DFJ and QQQ have a monthly-return correlation of 0.46, 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, DFJ or QQQ?
DFJ yields 2.43% while QQQ yields 0.44%, so DFJ currently pays the higher dividend yield.
Is QQQ better than DFJ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. DFJ is less concentrated, with 5.9% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.