DFSV vs QQQ
Dimensional US Small Cap Value ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DFSV delivered stronger 1-year returns. DFSV offers more diversification with 1,037 holdings.
Side-by-Side Comparison
| Metric | DFSV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.18% | |
| AUM | $8.2B | $455.8B | |
| Dividend Yield | 1.38% | 0.41% | |
| Holdings | 1,037 | 108 | |
| YTD Return | +23.36% | +19.68% | |
| 1Y Return | +31.11% | +26.75% | |
| 3Y Return (annualized) | +16.25% | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 21.4% | 30.6% | |
| Max Drawdown | -28.0% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 23, 2022 | Mar 10, 1999 |
DFSV vs QQQ Performance
Dimensional US Small Cap Value ETF (DFSV) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFSV returned +31.11% while QQQ returned +26.75%. Year to date, DFSV is up 23.36% versus a gain of 19.68% for QQQ.
Over three years, DFSV compounded at +16.25% per year against +26.25% for QQQ. Across the full 5-year window we track, DFSV has the edge at +13.19% annualized vs +13.15%. 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 21.4% for DFSV. 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 -28.0% for DFSV 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFSV charges 0.30% per year while QQQ charges 0.18%. On a $10,000 position that is $30 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, DFSV currently yields 1.38% against 0.41% for QQQ.
Holdings Overlap
DFSV and QQQ share 0 holdings out of 1116 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, DFSV or QQQ?
DFSV has an expense ratio of 0.30% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, DFSV or QQQ?
Over the past year DFSV returned +31.11% vs +26.75% for QQQ, so DFSV leads on 1-year performance. Over the longest common window we track (5 years), DFSV annualized +13.19% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFSV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.4% for DFSV. Worst drawdown: DFSV -28.0% vs QQQ -83.0%.
Should I hold both DFSV and QQQ?
DFSV and QQQ have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFSV and QQQ?
DFSV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1116 unique securities.
Which pays a higher dividend, DFSV or QQQ?
DFSV yields 1.38% while QQQ yields 0.41%, so DFSV currently pays the higher dividend yield.
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