DFSE vs QQQ
Dimensional Emerging Markets Sustainability Core 1 ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. DFSE offers more diversification with 1859 holdings.
Side-by-Side Comparison
| Metric | DFSE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.41% | 0.18% | |
| AUM | $582M | $455.8B | |
| Dividend Yield | 1.89% | 0.41% | |
| Holdings | 4,274 | 108 | |
| YTD Return | +13.80% | +17.46% | |
| 1Y Return | +25.93% | +26.02% | |
| 3Y Return (annualized) | +18.88% | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 15.0% | 30.6% | |
| Max Drawdown | -19.8% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2022 | Mar 10, 1999 |
DFSE vs QQQ Performance
Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFSE returned +25.93% while QQQ returned +26.02%. Year to date, DFSE is up 13.80% versus a gain of 17.46% for QQQ.
Over three years, DFSE compounded at +18.88% per year against +25.51% for QQQ. Across the full 4-year window we track, DFSE has the edge at +20.81% annualized vs +13.08%. 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 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 -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 0.70. 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 1.89% against 0.41% for QQQ.
Holdings Overlap
DFSE and QQQ share 73 holdings out of 1889 unique holdings combined, representing a 39.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $23 per year of difference.
Which performed better, DFSE or QQQ?
Over the past year DFSE returned +25.93% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), DFSE annualized +20.81% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFSE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.0% for DFSE. Worst drawdown: DFSE -19.8% vs QQQ -83.0%.
Should I hold both DFSE and QQQ?
DFSE and QQQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFSE and QQQ?
DFSE and QQQ share 73 common holdings with a 39.9% weight overlap. Combined, they hold 1889 unique securities.
Which pays a higher dividend, DFSE or QQQ?
DFSE yields 1.89% while QQQ yields 0.41%, so DFSE currently pays the higher dividend yield.
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