DIM vs QQQ

DIM vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. DIM offers more diversification with 594 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: DIM

Side-by-Side Comparison

MetricDIMQQQWinner
Expense Ratio0.58%0.18%
AUM$170M$496.3B
Dividend Yield2.97%0.44%
Holdings594108
YTD Return+10.98%+17.30%
1Y Return+17.58%+24.93%
3Y Return (annualized)+19.69%+26.19%
5Y Return (annualized)+9.02%+15.34%
Volatility (annualized)17.7%30.6%
Max Drawdown-64.7%-83.0%
Fund FamilyWisdomTree InvestmentsInvesco (US)
CategoryEquityEquity
InceptionJun 16, 2006Mar 10, 1999

DIM vs QQQ Performance

WisdomTree International MidCap Dividend Fund (DIM) is a ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DIM returned +17.58% while QQQ returned +24.93%. Year to date, DIM is up 10.98% versus a gain of 17.30% for QQQ.

Over three years, DIM compounded at +19.69% per year against +26.19% for QQQ; over five years the annualized figures are +9.02% and +15.34% respectively. Across the full 20-year window we track, QQQ has the edge at +13.06% annualized vs +3.87%. 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 17.7% for DIM. 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 -64.7% for DIM 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 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DIM 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, DIM currently yields 2.97% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

DIM and QQQ share 0 holdings out of 680 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, DIM or QQQ?

DIM 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, DIM or QQQ?

Over the past year DIM returned +17.58% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), DIM annualized +3.87% vs +13.06% for QQQ. Past performance does not guarantee future results.

Which is riskier, DIM or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 17.7% for DIM. Worst drawdown: DIM -64.7% vs QQQ -83.0%.

Should I hold both DIM and QQQ?

DIM and QQQ have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DIM and QQQ?

DIM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 680 unique securities.

Which pays a higher dividend, DIM or QQQ?

DIM yields 2.97% while QQQ yields 0.44%, so DIM currently pays the higher dividend yield.

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