DFSI vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. DFSI offers more diversification with 332 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: DFSI

Side-by-Side Comparison

MetricDFSIQQQWinner
Expense Ratio0.24%0.18%
AUM$1.1B$455.8B
Dividend Yield2.22%0.41%
Holdings334108
YTD Return+11.04%+18.20%
1Y Return+21.55%+27.63%
3Y Return (annualized)+18.60%+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)13.2%30.6%
Max Drawdown-12.8%-83.0%
Fund FamilyDimensionalInvesco (US)
CategoryEquityEquity
InceptionMar 12, 2008Mar 10, 1999

DFSI vs QQQ Performance

Dimensional International Sustainability Core 1 ETF (DFSI) is a ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFSI returned +21.55% while QQQ returned +27.63%. Year to date, DFSI is up 11.04% versus a gain of 18.20% for QQQ.

Over three years, DFSI compounded at +18.60% per year against +25.54% for QQQ. Across the full 4-year window we track, DFSI has the edge at +21.35% annualized vs +13.11%. 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 13.2% for DFSI. 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 -12.8% for DFSI 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DFSI charges 0.24% per year while QQQ charges 0.18%. On a $10,000 position that is $24 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, DFSI currently yields 2.22% against 0.41% for QQQ.

Holdings Overlap

14.8%overlap

DFSI and QQQ share 34 holdings out of 401 unique holdings combined, representing a 14.8% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in DFSIWeight in QQQDifference
MU2.73%4.67%1.94%
AMZN3.13%4.26%1.13%
AMD0.21%3.85%3.64%
CSCOProProPro
GOOGProProPro
INTCProProPro
LIN:IEProProPro
ADIProProPro
TMUSProProPro
CSXProProPro
See all 10 holdings DFSI shares with QQQ
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, DFSI or QQQ?

DFSI has an expense ratio of 0.24% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, DFSI or QQQ?

Over the past year DFSI returned +21.55% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), DFSI annualized +21.35% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, DFSI or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 13.2% for DFSI. Worst drawdown: DFSI -12.8% vs QQQ -83.0%.

Should I hold both DFSI and QQQ?

DFSI and QQQ have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DFSI and QQQ?

DFSI and QQQ share 34 common holdings with a 14.8% weight overlap. Combined, they hold 401 unique securities.

Which pays a higher dividend, DFSI or QQQ?

DFSI yields 2.22% while QQQ yields 0.41%, so DFSI currently pays the higher dividend yield.

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