DFNL vs QQQ
Davis Select Financial ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | DFNL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.18% | |
| AUM | $495M | $496.3B | |
| Dividend Yield | 1.29% | 0.44% | |
| Holdings | 33 | 108 | |
| YTD Return | +8.97% | +19.52% | |
| 1Y Return | +19.68% | +26.68% | |
| 3Y Return (annualized) | +25.01% | +26.64% | |
| 5Y Return (annualized) | +12.98% | +15.36% | |
| Volatility (annualized) | 19.9% | 30.6% | |
| Max Drawdown | -44.5% | -83.0% | |
| Fund Family | Davis ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 11, 2017 | Mar 10, 1999 |
DFNL vs QQQ Performance
Davis Select Financial ETF (DFNL) is a ETF from Davis ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFNL returned +19.68% while QQQ returned +26.68%. Year to date, DFNL is up 8.97% versus a gain of 19.52% for QQQ.
Over three years, DFNL compounded at +25.01% per year against +26.64% for QQQ; over five years the annualized figures are +12.98% and +15.36% respectively. Across the full 10-year window we track, QQQ has the edge at +13.14% annualized vs +12.58%. 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 19.9% for DFNL. 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 -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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
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
DFNL and QQQ share 0 holdings out of 133 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, DFNL or QQQ?
DFNL has an expense ratio of 0.61% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, DFNL or QQQ?
Over the past year DFNL returned +19.68% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), DFNL annualized +12.58% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFNL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.9% for DFNL. Worst drawdown: DFNL -44.5% vs QQQ -83.0%.
Should I hold both DFNL and QQQ?
DFNL and QQQ have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFNL and QQQ?
DFNL and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 133 unique securities.
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.
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