DFAU vs QQQ
DFAU vs QQQ
Dimensional US Core Equity Market ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
DFAU has a lower expense ratio. QQQ delivered stronger 1-year returns. DFAU offers more diversification with 2099 holdings.
Side-by-Side Comparison
| Metric | DFAU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.18% | |
| AUM | $12.3B | $455.8B | |
| Dividend Yield | 0.91% | 0.41% | |
| Holdings | 2,291 | 108 | |
| YTD Return | +12.22% | +14.45% | |
| 1Y Return | +22.45% | +24.70% | |
| 3Y Return (annualized) | +20.09% | +24.19% | |
| 5Y Return (annualized) | +12.52% | +14.49% | |
| Volatility (annualized) | 15.1% | 30.6% | |
| Max Drawdown | -23.6% | -83.0% | |
| Fund Family | Dimensional | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 17, 2020 | Mar 10, 1999 |
DFAU vs QQQ Performance
Dimensional US Core Equity Market ETF (DFAU) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFAU returned +22.45% while QQQ returned +24.70%. Year to date, DFAU is up 12.22% versus a gain of 14.45% for QQQ.
Over three years, DFAU compounded at +20.09% per year against +24.19% for QQQ; over five years the annualized figures are +12.52% and +14.49% respectively. Across the full 6-year window we track, DFAU has the edge at +15.40% annualized vs +12.98%. 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 15.1% for DFAU. 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 -23.6% for DFAU 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAU charges 0.12% per year while QQQ charges 0.18%. On a $10,000 position that is $12 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, DFAU currently yields 0.91% against 0.41% for QQQ.
Holdings Overlap
DFAU and QQQ share 89 holdings out of 2113 unique holdings combined, representing a 46.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in DFAU | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 6.61% | 7.88% | 1.27% |
| AAPL | 6.49% | 7.46% | 0.97% |
| MSFT | 4.26% | 4.65% | 0.39% |
| AMZN | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
See all 10 holdings DFAU 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, DFAU or QQQ?
DFAU has an expense ratio of 0.12% while QQQ charges 0.18%. DFAU is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, DFAU or QQQ?
Over the past year DFAU returned +22.45% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), DFAU annualized +15.40% vs +12.98% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFAU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.1% for DFAU. Worst drawdown: DFAU -23.6% vs QQQ -83.0%.
Should I hold both DFAU and QQQ?
DFAU and QQQ have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAU and QQQ?
DFAU and QQQ share 89 common holdings with a 46.3% weight overlap. Combined, they hold 2113 unique securities.
Which pays a higher dividend, DFAU or QQQ?
DFAU yields 0.91% while QQQ yields 0.41%, so DFAU currently pays the higher dividend yield.
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