DFAR vs QQQ
Dimensional US Real Estate ETF vs Invesco QQQ Trust, Series 1
Which is better, DFAR or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.7% of the fund in its ten largest positions against 50.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DFAR | QQQ |
|---|---|---|
| Expense Ratio | 0.19% | 0.18%Best |
| AUM | $8.2B | $506.1B |
| Dividend Yield | 3.59% | 0.42% |
| Holdings | 242 | 321 |
| YTD Return | +7.13% | +19.30%Best |
| 1Y Return | +6.57% | +22.47%Best |
| 3Y Return (annualized) | +10.06% | +26.18%Best |
| 5Y Return (annualized) | - | +15.42% |
| Volatility (annualized) | 18.3%Best | 20.7% |
| Max Drawdown | -32.3% | -29.6%Best |
| $10,000 over 4.6 years | $10,880 | $21,900Best |
| Top 10 Weight | 50.2% | 46.7%Best |
| Fund Family | Dimensional | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Feb 23, 2022 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 4.6 years row, are measured over the window both funds cover: Feb 24, 2022 to Oct 14, 2026 (4.6 years).
DFAR vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.6 years both funds cover.
DFAR vs QQQ Performance
Dimensional US Real Estate ETF (DFAR) is an ETF from Dimensional and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DFAR returned +6.57% while QQQ returned +22.47%. Year to date, DFAR is up 7.13% versus a gain of 19.30% for QQQ.
Over three years, DFAR compounded at +10.06% per year against +26.18% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.7% compared with 18.3% for DFAR. 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 -32.3% for DFAR and -29.6% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
DFAR charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, DFAR currently yields 3.59% against 0.42% for QQQ.
Holdings Overlap
0.1% of DFAR's money is in holdings QQQ also owns. 1.7% of QQQ's money is in holdings DFAR also owns.
QQQ and DFAR share little of their money.
1 positions in common, counted across the 120 positions we hold weights for in DFAR and 101 in QQQ, against full books of 242 and 321.
What only one of them owns
Our book lists 92 positions for QQQ that do not appear in our book for DFAR (94.6% of the fund), and 116 for DFAR that do not appear in QQQ (99.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in DFAR | Weight in QQQ | Difference |
|---|---|---|---|
| CTOCostco Wholesale Corp | 0.05% | 1.69% | 1.64% |
You are not choosing between two funds in isolation.
Whichever of DFAR and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFAR or QQQ?
DFAR has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, DFAR or QQQ?
Over the past year DFAR returned +6.57% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFAR or QQQ?
QQQ has been the more volatile fund at 20.7% annualized versus 18.3% for DFAR. Worst drawdown: DFAR -32.3% vs QQQ -29.6%.
Should I hold both DFAR and QQQ?
DFAR and QQQ have a monthly-return correlation of 0.60, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between DFAR and QQQ?
1.7% of QQQ's money is in holdings DFAR also owns. 1.7% of QQQ's is in holdings DFAR also owns. They hold 1 positions in common, counted across the 120 positions we hold weights for in DFAR and 101 in QQQ.
Which pays a higher dividend, DFAR or QQQ?
DFAR yields 3.59% while QQQ yields 0.42%, so DFAR currently pays the higher dividend yield.
Is QQQ better than DFAR?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.7% of the fund in its ten largest positions against 50.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.