DVY vs QQQ
iShares Select Dividend 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 103 holdings.
Side-by-Side Comparison
| Metric | DVY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $23.8B | $455.8B | |
| Dividend Yield | 3.37% | 0.41% | |
| Holdings | 105 | 108 | |
| YTD Return | +16.12% | +18.31% | |
| 1Y Return | +21.96% | +25.37% | |
| 3Y Return (annualized) | +16.49% | +25.79% | |
| 5Y Return (annualized) | +10.13% | +15.20% | |
| Volatility (annualized) | 14.8% | 30.6% | |
| Max Drawdown | -65.2% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 3, 2003 | Mar 10, 1999 |
DVY vs QQQ Performance
iShares Select Dividend ETF (DVY) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DVY returned +21.96% while QQQ returned +25.37%. Year to date, DVY is up 16.12% versus a gain of 18.31% for QQQ.
Over three years, DVY compounded at +16.49% per year against +25.79% for QQQ; over five years the annualized figures are +10.13% and +15.20% respectively. Across the full 23-year window we track, QQQ has the edge at +13.10% annualized vs +6.15%. 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 14.8% for DVY. 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 -65.2% for DVY 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DVY charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, DVY currently yields 3.37% against 0.41% for QQQ.
Holdings Overlap
DVY and QQQ share 6 holdings out of 197 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DVY or QQQ?
DVY has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, DVY or QQQ?
Over the past year DVY returned +21.96% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), DVY annualized +6.15% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, DVY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.8% for DVY. Worst drawdown: DVY -65.2% vs QQQ -83.0%.
Should I hold both DVY and QQQ?
DVY and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DVY and QQQ?
DVY and QQQ share 6 common holdings with a 2.1% weight overlap. Combined, they hold 197 unique securities.
Which pays a higher dividend, DVY or QQQ?
DVY yields 3.37% while QQQ yields 0.41%, so DVY currently pays the higher dividend yield.
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