DFNL vs QQQ
Davis Select Financial ETF vs Invesco QQQ Trust, Series 1
Which is better, DFNL or QQQ?
Large Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. DFNL led over 3Y, QQQ over 1Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 57.1%.
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 | DFNL | QQQ |
|---|---|---|
| Expense Ratio | 0.61% | 0.18%Best |
| AUM | $486M | $486.1B |
| Dividend Yield | 1.29% | 0.44% |
| Holdings | 31 | 107 |
| YTD Return | +7.68% | +17.54%Best |
| 1Y Return | +15.16% | +25.59%Best |
| 3Y Return (annualized) | +24.97%Best | +24.63% |
| 5Y Return (annualized) | +13.54% | +14.18%Best |
| Volatility (annualized) | 19.8% | 19.3%Best |
| Max Drawdown | -44.5% | -35.1%Best |
| $10,000 over 5 years | $18,869 | $19,407Best |
| Top 10 Weight | 57.1% | 46.5%Best |
| Fund Family | Davis ETFs | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Jan 11, 2017 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jan 12, 2017 to Sep 4, 2026 (9.6 years).
DFNL 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 9.6 years both funds cover.
DFNL vs QQQ Performance
Davis Select Financial ETF (DFNL) is an ETF from Davis ETFs and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DFNL returned +15.16% while QQQ returned +25.59%. Year to date, DFNL is up 7.68% versus a gain of 17.54% for QQQ.
Over three years, DFNL compounded at +24.97% per year against +24.63% for QQQ; over five years the annualized figures are +13.54% and +14.18% respectively. Across the full 10-year window we track, QQQ has the edge at +20.52% annualized vs +12.36%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFNL has been the more volatile fund, with annualized monthly volatility of 19.8% compared with 19.3% for QQQ. 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 -44.5% for DFNL 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 0.56. They move together some of the time, and apart the rest.
Fees and Cost Over Time
DFNL charges 0.61% per year while QQQ charges 0.18%. On a $10,000 position that is $61 vs $18 annually, a gap of $43 per year that compounds over a long holding period. On income, DFNL currently yields 1.29% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 31 holdings in DFNL and 102 in QQQ, totalling 100.0% 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 31 positions we hold weights for in DFNL and 102 in QQQ, against full books of 31 and 107.
What only one of them owns
Our book lists 96 positions for QQQ that do not appear in our book for DFNL (97.5% of the fund), and 23 for DFNL that do not appear in QQQ (84.1%).
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 DFNL 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, DFNL or QQQ?
DFNL has an expense ratio of 0.61% while QQQ charges 0.18%. QQQ is the cheaper option, by $43 a year on a $10,000 investment.
Which performed better, DFNL or QQQ?
Over the past year DFNL returned +15.16% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), DFNL annualized +12.36% vs +20.52% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFNL or QQQ?
DFNL has been the more volatile fund at 19.8% annualized versus 19.3% for QQQ. Worst drawdown: DFNL -44.5% vs QQQ -35.1%.
Should I hold both DFNL and QQQ?
DFNL and QQQ have a monthly-return correlation of 0.56, 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, DFNL or QQQ?
DFNL yields 1.29% while QQQ yields 0.44%, so DFNL currently pays the higher dividend yield.
Is QQQ better than DFNL?
QQQ has a lower expense ratio. DFNL led over 3Y, QQQ over 1Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 57.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.