DFSE vs QQQ
Dimensional Emerging Markets Sustainability Core 1 ETF vs Invesco QQQ Trust, Series 1
Which is better, DFSE or QQQ?
QQQ has been ahead.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. DFSE is less concentrated, with 23.4% 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 | DFSE | QQQ |
|---|---|---|
| Expense Ratio | 0.41% | 0.18%Best |
| AUM | $646M | $483.5B |
| Dividend Yield | 1.86% | 0.44% |
| Holdings | 1,875 | 107 |
| YTD Return | +15.14% | +15.86%Best |
| 1Y Return | +21.11% | +22.63%Best |
| 3Y Return (annualized) | +19.05% | +24.15%Best |
| 5Y Return (annualized) | - | +14.16% |
| Volatility (annualized) | 15.0%Best | 18.3% |
| Max Drawdown | -19.8%Best | -22.8% |
| $10,000 over 3.9 years | $20,822 | $27,605Best |
| Top 10 Weight | 23.4%Best | 46.5% |
| Fund Family | Dimensional | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Nov 1, 2022 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 3.9 years row, are measured over the window both funds cover: Nov 2, 2022 to Sep 10, 2026 (3.9 years).
DFSE 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 3.9 years both funds cover.
DFSE vs QQQ Performance
Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) is an ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DFSE returned +21.11% while QQQ returned +22.63%. Year to date, DFSE is up 15.14% versus a gain of 15.86% for QQQ.
Over three years, DFSE compounded at +19.05% per year against +24.15% for QQQ. Across the full 4-year window we track, QQQ has the edge at +29.74% annualized vs +20.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.3% compared with 15.0% for DFSE. 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 -19.8% for DFSE and -22.8% 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFSE charges 0.41% per year while QQQ charges 0.18%. On a $10,000 position that is $41 vs $18 annually, a gap of $23 per year that compounds over a long holding period. On income, DFSE currently yields 1.86% against 0.44% for QQQ.
Holdings Overlap
0.3% of DFSE's money is in holdings QQQ also owns. 0.3% of QQQ's money is in holdings DFSE also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 3,640 positions we hold weights for in DFSE and 102 in QQQ, against full books of 1,875 and 107.
What only one of them owns
Our book lists 95 positions for QQQ that do not appear in our book for DFSE (97.0% of the fund), and 48 for DFSE that do not appear in QQQ (2.3%).
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.
Top Shared Holdings
| Stock | Weight in DFSE | Weight in QQQ | Difference |
|---|---|---|---|
| PDD:IEPdd Holdings Inc | 0.35% | 0.27% | 0.08% |
You are not choosing between two funds in isolation.
Whichever of DFSE 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, DFSE or QQQ?
DFSE has an expense ratio of 0.41% while QQQ charges 0.18%. QQQ is the cheaper option, by $23 a year on a $10,000 investment.
Which performed better, DFSE or QQQ?
Over the past year DFSE returned +21.11% vs +22.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), DFSE annualized +20.69% vs +29.74% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFSE or QQQ?
QQQ has been the more volatile fund at 18.3% annualized versus 15.0% for DFSE. Worst drawdown: DFSE -19.8% vs QQQ -22.8%.
Should I hold both DFSE and QQQ?
DFSE and QQQ have a monthly-return correlation of 0.70, 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, DFSE or QQQ?
DFSE yields 1.86% while QQQ yields 0.44%, so DFSE currently pays the higher dividend yield.
Is QQQ better than DFSE?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. DFSE is less concentrated, with 23.4% 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.