DIA vs QQQ
State Street SPDR Dow Jones Industrial Average ETF Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
DIA has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | DIA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.16% | 0.18% | |
| AUM | $44.9B | $455.8B | |
| Dividend Yield | 1.38% | 0.41% | |
| Holdings | 31 | 108 | |
| YTD Return | +12.09% | +19.68% | |
| 1Y Return | +21.49% | +26.75% | |
| 3Y Return (annualized) | +16.96% | +26.25% | |
| 5Y Return (annualized) | +10.56% | +15.39% | |
| Volatility (annualized) | 15.0% | 30.6% | |
| Max Drawdown | -53.8% | -83.0% | |
| Fund Family | SPDR State Street Global Advisors | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 14, 1998 | Mar 10, 1999 |
DIA vs QQQ Performance
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) is a ETF from SPDR State Street Global Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DIA returned +21.49% while QQQ returned +26.75%. Year to date, DIA is up 12.09% versus a gain of 19.68% for QQQ.
Over three years, DIA compounded at +16.96% per year against +26.25% for QQQ; over five years the annualized figures are +10.56% and +15.39% respectively. Across the full 27-year window we track, QQQ has the edge at +13.15% annualized vs +7.32%. 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 DIA. 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 -53.8% for DIA 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DIA charges 0.16% per year while QQQ charges 0.18%. On a $10,000 position that is $16 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, DIA currently yields 1.38% against 0.41% for QQQ.
Holdings Overlap
DIA and QQQ share 5 holdings out of 106 unique holdings combined, representing a 8.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DIA or QQQ?
DIA has an expense ratio of 0.16% while QQQ charges 0.18%. DIA is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, DIA or QQQ?
Over the past year DIA returned +21.49% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), DIA annualized +7.32% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, DIA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.0% for DIA. Worst drawdown: DIA -53.8% vs QQQ -83.0%.
Should I hold both DIA and QQQ?
DIA and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DIA and QQQ?
DIA and QQQ share 5 common holdings with a 8.7% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, DIA or QQQ?
DIA yields 1.38% while QQQ yields 0.41%, so DIA currently pays the higher dividend yield.
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