DVOL vs QQQ
First Trust Dorsey Wright Momentum & Low Volatility ETF 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 | DVOL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $74M | $496.3B | |
| Dividend Yield | 0.75% | 0.44% | |
| Holdings | 51 | 108 | |
| YTD Return | +5.37% | +16.23% | |
| 1Y Return | +5.50% | +26.23% | |
| 3Y Return (annualized) | +14.12% | +25.75% | |
| 5Y Return (annualized) | +6.05% | +14.78% | |
| Volatility (annualized) | 16.1% | 30.6% | |
| Max Drawdown | -38.3% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 5, 2018 | Mar 10, 1999 |
DVOL vs QQQ Performance
First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) is a ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DVOL returned +5.50% while QQQ returned +26.23%. Year to date, DVOL is up 5.37% versus a gain of 16.23% for QQQ.
Over three years, DVOL compounded at +14.12% per year against +25.75% for QQQ; over five years the annualized figures are +6.05% and +14.78% respectively. Across the full 8-year window we track, QQQ has the edge at +13.02% annualized vs +8.74%. 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 16.1% for DVOL. 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 -38.3% for DVOL 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DVOL charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, DVOL currently yields 0.75% against 0.44% for QQQ.
Holdings Overlap
DVOL and QQQ share 5 holdings out of 147 unique holdings combined, representing a 4.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DVOL or QQQ?
DVOL has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, DVOL or QQQ?
Over the past year DVOL returned +5.50% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), DVOL annualized +8.74% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, DVOL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.1% for DVOL. Worst drawdown: DVOL -38.3% vs QQQ -83.0%.
Should I hold both DVOL and QQQ?
DVOL and QQQ have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DVOL and QQQ?
DVOL and QQQ share 5 common holdings with a 4.4% weight overlap. Combined, they hold 147 unique securities.
Which pays a higher dividend, DVOL or QQQ?
DVOL yields 0.75% while QQQ yields 0.44%, so DVOL currently pays the higher dividend yield.
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