DTF vs QQQ
DTF Tax-Free Income 2028 Term Fund Inc 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 103 holdings.
Side-by-Side Comparison
| Metric | DTF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.27% | 0.18% | |
| AUM | $84M | $455.8B | |
| Dividend Yield | 3.24% | 0.41% | |
| Holdings | 82 | 108 | |
| YTD Return | +2.99% | +17.46% | |
| 1Y Return | +5.58% | +26.02% | |
| 3Y Return (annualized) | +5.72% | +25.51% | |
| 5Y Return (annualized) | -1.63% | +15.12% | |
| Volatility (annualized) | 10.2% | 30.6% | |
| Max Drawdown | -48.4% | -83.0% | |
| Fund Family | Duff & Phelps Investment Management Co. | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 29, 1991 | Mar 10, 1999 |
DTF vs QQQ Performance
DTF Tax-Free Income 2028 Term Fund Inc (DTF) is a ETF from Duff & Phelps Investment Management Co. and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DTF returned +5.58% while QQQ returned +26.02%. Year to date, DTF is up 2.99% versus a gain of 17.46% for QQQ.
Over three years, DTF compounded at +5.72% per year against +25.51% for QQQ; over five years the annualized figures are -1.63% and +15.12% respectively. Across the full 27-year window we track, QQQ has the edge at +13.08% annualized vs -0.35%. 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 10.2% for DTF. 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 -48.4% for DTF 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 0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DTF charges 2.27% per year while QQQ charges 0.18%. On a $10,000 position that is $227 vs $18 annually, a gap of $209 per year that compounds over a long holding period. On income, DTF currently yields 3.24% against 0.41% for QQQ.
Holdings Overlap
DTF and QQQ share 0 holdings out of 127 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, DTF or QQQ?
DTF has an expense ratio of 2.27% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $209 per year of difference.
Which performed better, DTF or QQQ?
Over the past year DTF returned +5.58% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), DTF annualized -0.35% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, DTF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.2% for DTF. Worst drawdown: DTF -48.4% vs QQQ -83.0%.
Should I hold both DTF and QQQ?
DTF and QQQ have a monthly-return correlation of 0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DTF and QQQ?
DTF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 127 unique securities.
Which pays a higher dividend, DTF or QQQ?
DTF yields 3.24% while QQQ yields 0.41%, so DTF currently pays the higher dividend yield.
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