DGCB vs QQQ
Dimensional Global Credit ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. DGCB offers more diversification with 1,147 holdings.
Side-by-Side Comparison
| Metric | DGCB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.18% | |
| AUM | $1.1B | $455.8B | |
| Dividend Yield | 3.98% | 0.41% | |
| Holdings | 1,147 | 108 | |
| YTD Return | +1.39% | +19.68% | |
| 1Y Return | +3.06% | +26.75% | |
| 3Y Return (annualized) | - | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 4.4% | 30.6% | |
| Max Drawdown | -3.1% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 7, 2023 | Mar 10, 1999 |
DGCB vs QQQ Performance
Dimensional Global Credit ETF (DGCB) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DGCB returned +3.06% while QQQ returned +26.75%. Year to date, DGCB is up 1.39% versus a gain of 19.68% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.4% for DGCB. 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 -3.1% for DGCB 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DGCB charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, DGCB currently yields 3.98% against 0.41% for QQQ.
Holdings Overlap
DGCB and QQQ share 0 holdings out of 821 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, DGCB or QQQ?
DGCB has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, DGCB or QQQ?
Over the past year DGCB returned +3.06% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), DGCB annualized +7.74% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, DGCB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.4% for DGCB. Worst drawdown: DGCB -3.1% vs QQQ -83.0%.
Should I hold both DGCB and QQQ?
DGCB and QQQ have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DGCB and QQQ?
DGCB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 821 unique securities.
Which pays a higher dividend, DGCB or QQQ?
DGCB yields 3.98% while QQQ yields 0.41%, so DGCB currently pays the higher dividend yield.
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