DSMC vs QQQ
Distillate Small/Mid Cash Flow ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DSMC delivered stronger 1-year returns. DSMC offers more diversification with 152 holdings.
Side-by-Side Comparison
| Metric | DSMC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.18% | |
| AUM | $143M | $496.3B | |
| Dividend Yield | 1.09% | 0.44% | |
| Holdings | 152 | 108 | |
| YTD Return | +23.19% | +16.23% | |
| 1Y Return | +26.31% | +26.23% | |
| 3Y Return (annualized) | +13.66% | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 17.0% | 30.6% | |
| Max Drawdown | -28.6% | -83.0% | |
| Fund Family | Distillate Capital Etfs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 5, 2022 | Mar 10, 1999 |
DSMC vs QQQ Performance
Distillate Small/Mid Cash Flow ETF (DSMC) is a ETF from Distillate Capital Etfs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DSMC returned +26.31% while QQQ returned +26.23%. Year to date, DSMC is up 23.19% versus a gain of 16.23% for QQQ.
Over three years, DSMC compounded at +13.66% per year against +25.75% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.02% annualized vs +12.47%. 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 17.0% for DSMC. 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 DSMC 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DSMC charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, DSMC currently yields 1.09% against 0.44% for QQQ.
Holdings Overlap
DSMC and QQQ share 0 holdings out of 253 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, DSMC or QQQ?
DSMC has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, DSMC or QQQ?
Over the past year DSMC returned +26.31% vs +26.23% for QQQ, so DSMC leads on 1-year performance. Over the longest common window we track (3 years), DSMC annualized +12.47% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, DSMC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.0% for DSMC. Worst drawdown: DSMC -28.6% vs QQQ -83.0%.
Should I hold both DSMC and QQQ?
DSMC and QQQ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DSMC and QQQ?
DSMC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 253 unique securities.
Which pays a higher dividend, DSMC or QQQ?
DSMC yields 1.09% while QQQ yields 0.44%, so DSMC currently pays the higher dividend yield.
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