DFAC vs QQQ
DFAC vs QQQ
Dimensional US Core Equity 2 ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
DFAC has a lower expense ratio. QQQ delivered stronger 1-year returns. DFAC offers more diversification with 2495 holdings.
Side-by-Side Comparison
| Metric | DFAC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.17% | 0.18% | |
| AUM | $47.6B | $455.8B | |
| Dividend Yield | 0.91% | 0.41% | |
| Holdings | 2,519 | 108 | |
| YTD Return | +15.22% | +16.83% | |
| 1Y Return | +25.76% | +26.58% | |
| 3Y Return (annualized) | +19.23% | +24.70% | |
| 5Y Return (annualized) | +12.17% | +14.88% | |
| Volatility (annualized) | 15.8% | 30.6% | |
| Max Drawdown | -23.1% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 4, 2007 | Mar 10, 1999 |
DFAC vs QQQ Performance
Dimensional US Core Equity 2 ETF (DFAC) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFAC returned +25.76% while QQQ returned +26.58%. Year to date, DFAC is up 15.22% versus a gain of 16.83% for QQQ.
Over three years, DFAC compounded at +19.23% per year against +24.70% for QQQ; over five years the annualized figures are +12.17% and +14.88% respectively. Across the full 5-year window we track, QQQ has the edge at +13.06% annualized vs +12.35%. 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 15.8% for DFAC. 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 -23.1% for DFAC 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAC charges 0.17% per year while QQQ charges 0.18%. On a $10,000 position that is $17 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, DFAC currently yields 0.91% against 0.41% for QQQ.
Holdings Overlap
DFAC and QQQ share 89 holdings out of 2509 unique holdings combined, representing a 32.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in DFAC | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 5.36% | 7.88% | 2.52% |
| AAPL | 4.79% | 7.46% | 2.67% |
| MSFT | 3.83% | 4.65% | 0.82% |
| AMZN | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
See all 10 holdings DFAC shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, DFAC or QQQ?
DFAC has an expense ratio of 0.17% while QQQ charges 0.18%. DFAC is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, DFAC or QQQ?
Over the past year DFAC returned +25.76% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), DFAC annualized +12.35% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFAC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.8% for DFAC. Worst drawdown: DFAC -23.1% vs QQQ -83.0%.
Should I hold both DFAC and QQQ?
DFAC and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAC and QQQ?
DFAC and QQQ share 89 common holdings with a 32.5% weight overlap. Combined, they hold 2509 unique securities.
Which pays a higher dividend, DFAC or QQQ?
DFAC yields 0.91% while QQQ yields 0.41%, so DFAC currently pays the higher dividend yield.
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