DGS vs QQQ
WisdomTree Emerging Markets SmallCap Dividend Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. DGS offers more diversification with 1,009 holdings.
Side-by-Side Comparison
| Metric | DGS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.18% | |
| AUM | $1.7B | $496.3B | |
| Dividend Yield | 3.93% | 0.44% | |
| Holdings | 1,009 | 108 | |
| YTD Return | +11.42% | +16.23% | |
| 1Y Return | +17.25% | +26.23% | |
| 3Y Return (annualized) | +13.87% | +25.75% | |
| 5Y Return (annualized) | +7.96% | +14.78% | |
| Volatility (annualized) | 20.3% | 30.6% | |
| Max Drawdown | -61.9% | -83.0% | |
| Fund Family | WisdomTree Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 30, 2007 | Mar 10, 1999 |
DGS vs QQQ Performance
WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) is a ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DGS returned +17.25% while QQQ returned +26.23%. Year to date, DGS is up 11.42% versus a gain of 16.23% for QQQ.
Over three years, DGS compounded at +13.87% per year against +25.75% for QQQ; over five years the annualized figures are +7.96% and +14.78% respectively. Across the full 19-year window we track, QQQ has the edge at +13.02% annualized vs +2.23%. 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 20.3% for DGS. 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 -61.9% for DGS 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DGS charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, DGS currently yields 3.93% against 0.44% for QQQ.
Holdings Overlap
DGS and QQQ share 0 holdings out of 1057 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, DGS or QQQ?
DGS has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, DGS or QQQ?
Over the past year DGS returned +17.25% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), DGS annualized +2.23% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, DGS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.3% for DGS. Worst drawdown: DGS -61.9% vs QQQ -83.0%.
Should I hold both DGS and QQQ?
DGS and QQQ have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DGS and QQQ?
DGS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1057 unique securities.
Which pays a higher dividend, DGS or QQQ?
DGS yields 3.93% while QQQ yields 0.44%, so DGS currently pays the higher dividend yield.
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