DMCY vs QQQ
Democracy International Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | DMCY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $5M | $496.3B | |
| Dividend Yield | 2.94% | 0.44% | |
| Holdings | 5 | 108 | |
| YTD Return | +4.90% | +16.64% | |
| 1Y Return | +26.32% | +27.27% | |
| 3Y Return (annualized) | +14.13% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 14.7% | 30.6% | |
| Max Drawdown | -28.6% | -83.0% | |
| Fund Family | Democracy Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 31, 2021 | Mar 10, 1999 |
DMCY vs QQQ Performance
Democracy International Fund (DMCY) is a ETF from Democracy Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DMCY returned +26.32% while QQQ returned +27.27%. Year to date, DMCY is up 4.90% versus a gain of 16.64% for QQQ.
Over three years, DMCY compounded at +14.13% per year against +25.96% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs +7.91%. 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 14.7% for DMCY. 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 -28.6% for DMCY 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DMCY charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, DMCY currently yields 2.94% against 0.44% for QQQ.
Holdings Overlap
DMCY and QQQ share 2 holdings out of 298 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DMCY or QQQ?
DMCY has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, DMCY or QQQ?
Over the past year DMCY returned +26.32% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), DMCY annualized +7.91% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, DMCY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.7% for DMCY. Worst drawdown: DMCY -28.6% vs QQQ -83.0%.
Should I hold both DMCY and QQQ?
DMCY and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DMCY and QQQ?
DMCY and QQQ share 2 common holdings with a 1.0% weight overlap. Combined, they hold 298 unique securities.
Which pays a higher dividend, DMCY or QQQ?
DMCY yields 2.94% while QQQ yields 0.44%, so DMCY currently pays the higher dividend yield.
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