DIVI vs QQQ
Franklin International Core Dividend Tilt Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
DIVI has a lower expense ratio. QQQ delivered stronger 1-year returns. DIVI offers more diversification with 421 holdings.
Side-by-Side Comparison
| Metric | DIVI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.18% | |
| AUM | $2.8B | $496.3B | |
| Dividend Yield | 3.55% | 0.44% | |
| Holdings | 421 | 108 | |
| YTD Return | +14.48% | +16.23% | |
| 1Y Return | +23.92% | +26.23% | |
| 3Y Return (annualized) | +20.55% | +25.75% | |
| 5Y Return (annualized) | +13.93% | +14.78% | |
| Volatility (annualized) | 13.5% | 30.6% | |
| Max Drawdown | -27.8% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 1, 2016 | Mar 10, 1999 |
DIVI vs QQQ Performance
Franklin International Core Dividend Tilt Index ETF (DIVI) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DIVI returned +23.92% while QQQ returned +26.23%. Year to date, DIVI is up 14.48% versus a gain of 16.23% for QQQ.
Over three years, DIVI compounded at +20.55% per year against +25.75% for QQQ; over five years the annualized figures are +13.93% and +14.78% respectively. Across the full 10-year window we track, QQQ has the edge at +13.02% annualized vs +7.82%. 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 13.5% for DIVI. 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 -27.8% for DIVI 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
DIVI charges 0.09% per year while QQQ charges 0.18%. On a $10,000 position that is $9 vs $18 annually, a gap of $9 per year that compounds over a long holding period. On income, DIVI currently yields 3.55% against 0.44% for QQQ.
Holdings Overlap
DIVI and QQQ share 2 holdings out of 509 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DIVI or QQQ?
DIVI has an expense ratio of 0.09% while QQQ charges 0.18%. DIVI is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, DIVI or QQQ?
Over the past year DIVI returned +23.92% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), DIVI annualized +7.82% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, DIVI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.5% for DIVI. Worst drawdown: DIVI -27.8% vs QQQ -83.0%.
Should I hold both DIVI and QQQ?
DIVI 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 DIVI and QQQ?
DIVI and QQQ share 2 common holdings with a 0.9% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, DIVI or QQQ?
DIVI yields 3.55% while QQQ yields 0.44%, so DIVI currently pays the higher dividend yield.
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