DXJ vs QQQ
WisdomTree Japan Hedged Equity Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DXJ delivered stronger 1-year returns. DXJ offers more diversification with 430 holdings.
Side-by-Side Comparison
| Metric | DXJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.18% | |
| AUM | $7.4B | $496.3B | |
| Dividend Yield | 0.96% | 0.44% | |
| Holdings | 430 | 108 | |
| YTD Return | +23.27% | +16.64% | |
| 1Y Return | +42.89% | +27.27% | |
| 3Y Return (annualized) | +32.00% | +25.96% | |
| 5Y Return (annualized) | +28.00% | +14.54% | |
| Volatility (annualized) | 17.1% | 30.6% | |
| Max Drawdown | -51.1% | -83.0% | |
| Fund Family | WisdomTree Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Mar 10, 1999 |
DXJ vs QQQ Performance
WisdomTree Japan Hedged Equity Fund (DXJ) is a ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DXJ returned +42.89% while QQQ returned +27.27%. Year to date, DXJ is up 23.27% versus a gain of 16.64% for QQQ.
Over three years, DXJ compounded at +32.00% per year against +25.96% for QQQ; over five years the annualized figures are +28.00% and +14.54% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs +7.26%. 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 17.1% for DXJ. 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 -51.1% for DXJ 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DXJ charges 0.48% per year while QQQ charges 0.18%. On a $10,000 position that is $48 vs $18 annually, a gap of $30 per year that compounds over a long holding period. On income, DXJ currently yields 0.96% against 0.44% for QQQ.
Holdings Overlap
DXJ and QQQ share 0 holdings out of 516 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, DXJ or QQQ?
DXJ has an expense ratio of 0.48% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, DXJ or QQQ?
Over the past year DXJ returned +42.89% vs +27.27% for QQQ, so DXJ leads on 1-year performance. Over the longest common window we track (20 years), DXJ annualized +7.26% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, DXJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.1% for DXJ. Worst drawdown: DXJ -51.1% vs QQQ -83.0%.
Should I hold both DXJ and QQQ?
DXJ and QQQ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DXJ and QQQ?
DXJ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 516 unique securities.
Which pays a higher dividend, DXJ or QQQ?
DXJ yields 0.96% while QQQ yields 0.44%, so DXJ currently pays the higher dividend yield.
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