100 Tech Leaders or 30 Industry Titans: QQQ vs. DIA Showdown

Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) and SPDR Dow Jones Industrial Average ETF Trust (NYSEMKT:DIA) differ most in portfolio concentration, sector exposure, recent performance, and yield -- with DIA offering a modestly lower fee and higher income, while QQQ leans into growth and tech-driven returns.

Both QQQ and DIA are flagship U.S. equity ETFs, but their approaches diverge: QQQ tracks the tech-heavy NASDAQ-100, favoring innovative growth companies, while DIA follows the Dow Jones Industrial Average, a select club of 30 established blue-chip stocks. This comparison highlights how these differences play out in cost, returns, risk, and portfolio makeup.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

DIA is slightly more affordable with a 0.16% expense ratio compared to QQQ’s 0.18%, and offers a notably higher dividend yield -- 1.4% versus 0.4% -- which may appeal to income-focused investors.

Performance & risk comparison

What's inside

DIA tracks the Dow Jones Industrial Average, a price-weighted index of 30 large-cap U.S. companies that have a reputation for stability and leadership. The fund is most heavily exposed to financial services (28%), technology (20%), and industrials (15%), with top holdings including Goldman Sachs (NYSE:GS), Caterpillar (NYSE:CAT), and Microsoft (NASDAQ:MSFT). With just 30 holdings and a nearly three-decade track record, DIA offers concentrated blue-chip exposure that tends to be less volatile than the broader market.

QQQ, by contrast, tracks the NASDAQ-100, which comprises over 100 of the largest non-financial companies listed on the NASDAQ. Its portfolio is dominated by technology (55%), communication services (17%), and consumer cyclical stocks (13%), with top positions in Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT). This heavy tech tilt means QQQ is more growth-oriented and historically more volatile, but also has delivered higher long-term returns.

What this means for investors

QQQ and DIA are some of the most recognizable ETFs in the market, each boasting massive assets under management and delivering nice gains over the last year. But their investing philosophies differ significantly. QQQ's stronger performance was driven by artificial intelligence momentum and megacap tech dominance. This concentration can amplify both gains and losses. DIA's more modest but still impressive returns came from a balanced mix of industrial, financial, and healthcare giants that generate substantial profits and distribute them to shareholders.

The structural differences matter for your portfolio. QQQ holds roughly 100 companies and uses market-cap weighting, meaning giant companies like Nvidia and Microsoft have the most influence. DIA's price-weighting system gives equal consideration to stock price rather than company size, creating a more unusual allocation than typical index funds. With $412 billion in assets, QQQ is among the world's most liquid ETFs, while DIA's $45 billion offers plenty of trading volume for most investors.

If you're seeking maximum growth potential and can handle the volatility that comes with concentrated tech exposure, QQQ offers compelling long-term upside. But if you prioritize steady income, prefer exposure to established blue-chip companies across diverse sectors, or want lower volatility in your portfolio, DIA's monthly dividends and focus on profitable, time-tested businesses may be the better fit.

Glossary

ETF (Exchange-traded fund): A fund holding a basket of securities that trades on an exchange like a stock.
Index: A rules-based collection of securities used to track and measure a specific segment of the market.
Expense ratio: Annual fund operating costs expressed as a percentage of the money you invest.
Dividend yield: Annual dividends paid by a fund or stock divided by its current share price.
Beta: A measure of how much an investment’s price moves relative to a benchmark, typically the S&P 500.
AUM (Assets under management): The total market value of all assets a fund or manager oversees.
Total return: Investment performance including price changes plus all dividends and distributions, assuming they are reinvested.
Max drawdown: The largest peak-to-trough decline in an investment’s value over a specific period.
Volatility: The degree to which an investment’s price moves up and down over time.
Price-weighted index: An index where companies with higher share prices have greater influence on performance.
Sector exposure: The percentage of a fund’s assets invested in specific industries, like technology or financials.
Growth-oriented: Focused on companies expected to grow earnings or revenues faster than the overall market, often with higher risk.

For more guidance on ETF investing, check out the full guide at this link.

Sara Appino has positions in Apple and Nvidia. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.