DFAT vs. QQQ

Last updated Jun 16, 2026

DFAT (Dimensional U.S. Targeted Value ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - DFAT is a Small Cap Value Equities fund actively managed by Dimensional, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. DFAT is actively managed, while QQQ is passively managed. Over the past 5 years, DFAT returned 10.16%/yr vs 17.59%/yr for QQQ. A 0.60 correlation means they provide meaningful diversification when combined. DFAT charges 0.28%/yr vs 0.18%/yr for QQQ.

Performance

DFAT vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional U.S. Targeted Value ETF (DFAT) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFAT achieves a 16.47% return, which is significantly lower than QQQ's 21.26% return.

DFAT

• 1D: -0.68%
• 1M: 5.80%
• YTD: 16.47%
• 6M: 14.23%
• 1Y: 33.75%
• 3Y*: 16.41%
• 5Y*: 10.16%
• 10Y*: —

QQQ

• 1D: 3.14%
• 1M: 4.95%
• YTD: 21.26%
• 6M: 22.17%
• 1Y: 41.87%
• 3Y*: 27.20%
• 5Y*: 17.59%
• 10Y*: 22.31%

*Multi-year figures are annualized to reflect compound growth (CAGR)

DFAT vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
DFAT Dimensional U.S. Targeted Value ETF	16.47%	8.73%	7.80%	20.86%	-6.23%	3.66%
QQQ Invesco QQQ ETF	21.26%	20.77%	25.58%	54.86%	-32.58%	17.00%

Correlation

The correlation between DFAT and QQQ is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.52
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (All Time) Calculated using the full available price history since Jun 14, 2021	0.60

The correlation between DFAT and QQQ shifts across timeframes, from 0.46 (1 year) to 0.60 (5 years), reflecting how their relationship changes across market environments.

DFAT vs. QQQ - Sectors Allocation Comparison

Sectors	DFAT	QQQ
Financial Services	27.9%	0.2%
Industrials	16.2%	2.6%
Consumer Cyclical	14.9%	11.4%
Energy	10.5%	0.5%
Technology	9.4%	58.7%
Consumer Defensive	6.9%	6.4%
Healthcare	6.4%	3.7%
Basic Materials	4.8%	1.0%
Communication Services	1.8%	14.3%
Real Estate	0.8%	0.1%
Utilities	0.4%	1.2%

Return for Risk

DFAT vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DFAT

DFAT Risk / Return Rank: 71
DFAT Sharpe Ratio Rank: 69
DFAT Sortino Ratio Rank: 73
DFAT Omega Ratio Rank: 66
DFAT Calmar Ratio Rank: 76
DFAT Martin Ratio Rank: 68

QQQ

QQQ Risk / Return Rank: 79
QQQ Sharpe Ratio Rank: 84
QQQ Sortino Ratio Rank: 79
QQQ Omega Ratio Rank: 81
QQQ Calmar Ratio Rank: 76
QQQ Martin Ratio Rank: 76

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DFAT vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional U.S. Targeted Value ETF (DFAT) and Invesco QQQ ETF (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	DFAT	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.03	2.42	-0.39
Sortino ratio: Return per unit of downside risk	2.96	3.12	-0.16
Omega ratio: Gain probability vs. loss probability	1.36	1.42	-0.06
Calmar ratio: Return relative to maximum drawdown	3.55	3.52	+0.03
Martin ratio: Return relative to average drawdown	11.42	13.12	-1.70

DFAT vs. QQQ - Sharpe Ratio Comparison

The current DFAT Sharpe Ratio is 2.03, which is comparable to the QQQ Sharpe Ratio of 2.42. The chart below compares the historical Sharpe Ratios of DFAT and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

DFAT vs. QQQ - Drawdown Comparison

The maximum DFAT drawdown since its inception was -26.12%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for DFAT and QQQ.

Drawdown Indicators

	DFAT	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-26.12%	-82.97%	+56.85%
Max Drawdown (1Y) Largest decline over 1 year	-9.55%	-11.96%	+2.41%
Max Drawdown (3Y) Largest decline over 3 years	-26.12%	-22.77%	-3.35%
Max Drawdown (5Y) Largest decline over 5 years	-26.12%	-35.12%	+9.00%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.12%	—
Current Drawdown Current decline from peak	-0.68%	-0.29%	-0.39%
Average Drawdown Average peak-to-trough decline	-6.25%	-32.75%	+26.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.96%	3.20%	-0.24%

Volatility

DFAT vs. QQQ - Volatility Comparison

The current volatility for Dimensional U.S. Targeted Value ETF (DFAT) is 4.34%, while Invesco QQQ ETF (QQQ) has a volatility of 8.14%. This indicates that DFAT experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFAT	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.34%	8.14%	-3.80%
Volatility (6M) Calculated over the trailing 6-month period	10.83%	14.12%	-3.29%
Volatility (1Y) Calculated over the trailing 1-year period	16.77%	17.43%	-0.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.46%	22.59%	-1.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.46%	22.41%	-0.95%

DFAT vs. QQQ - Expense Ratio Comparison

DFAT has a 0.28% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

DFAT vs. QQQ - Dividend Comparison

DFAT's dividend yield for the trailing twelve months is around 1.41%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAT Dimensional U.S. Targeted Value ETF	1.41%	1.55%	1.31%	1.34%	1.34%	1.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
QQQ Invesco QQQ ETF	0.38%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both DFAT and QQQ in my portfolio?

DFAT and QQQ have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFAT or QQQ?

QQQ has higher volatility (8.14%) compared to DFAT (4.34%). In terms of maximum drawdown, DFAT dropped -26.12% vs QQQ's -82.97%.

Which ETF is better, DFAT or QQQ?

On 5-year performance, QQQ leads with 17.59% vs 10.16% for DFAT. On fees, QQQ is cheaper at 0.18% per year. On volatility, DFAT has been the lower-risk option at 4.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFAT or QQQ?

Over the 5-year period, QQQ has performed better with a 17.59% return vs 10.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFAT or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.28% for DFAT.

Which ETF pays a higher dividend yield, DFAT or QQQ?

DFAT has the higher dividend yield at 1.41%, compared with 0.38% for QQQ.

What is the main difference between DFAT and QQQ?

DFAT is categorized as Small Cap Value Equities, while QQQ is Nasdaq-100. They also come from different issuers: Dimensional and Invesco. Their fees differ too: 0.28% for DFAT and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.42 vs 2.03), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.