QQQ vs SCHA
Invesco QQQ Trust, Series 1 vs Schwab US Small-Cap ETF
Which is better, QQQ or SCHA?
Large Cap Growth against Small Cap Blend.
SCHA has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, SCHA over 1Y. SCHA is less concentrated, with 9.1% of the fund in its ten largest positions against 46.5%.
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 | QQQ | SCHA |
|---|---|---|
| Expense Ratio | 0.18% | 0.03%Best |
| AUM | $486.1B | $22.7B |
| Dividend Yield | 0.44% | 1.07% |
| Holdings | 107 | 1,710 |
| YTD Return | +17.54% | +20.47%Best |
| 1Y Return | +25.59% | +27.23%Best |
| 3Y Return (annualized) | +24.63%Best | +18.09% |
| 5Y Return (annualized) | +14.18%Best | +7.38% |
| Volatility (annualized) | 17.6%Best | 19.2% |
| Max Drawdown | -35.1%Best | -43.0% |
| $10,000 over 5 years | $19,407Best | $14,276 |
| Top 10 Weight | 46.5% | 9.1%Best |
| Fund Family | Invesco (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Small Cap Blend |
| Inception | Mar 10, 1999 | Nov 3, 2009 |
Volatility and max drawdown are measured over the window both funds cover: Nov 3, 2009 to Sep 4, 2026 (16.8 years).
QQQ vs SCHA 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 16.8 years both funds cover.
QQQ vs SCHA Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Schwab US Small-Cap ETF (SCHA) is an ETF from Charles Schwab Asset Management. Over the past year QQQ returned +25.59% while SCHA returned +27.23%. Year to date, QQQ is up 17.54% versus a gain of 20.47% for SCHA.
Over three years, QQQ compounded at +24.63% per year against +18.09% for SCHA; over five years the annualized figures are +14.18% and +7.38% respectively. Across the full 17-year window we track, QQQ has the edge at +18.73% annualized vs +11.29%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHA has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 17.6% for QQQ. 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 -35.1% for QQQ and -43.0% for SCHA. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCHA charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.07% for SCHA.
Holdings Overlap
1.2% of QQQ's money is in holdings SCHA also owns. 5.4% of SCHA's money is in holdings QQQ also owns.
SCHA and QQQ share little of their money.
2 positions in common, counted across the 102 positions we hold weights for in QQQ and 1,706 in SCHA, against full books of 107 and 1,710.
What only one of them owns
Our book lists 1,512 positions for SCHA that do not appear in our book for QQQ (92.6% of the fund), and 94 for QQQ that do not appear in SCHA (96.4%).
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.
You are not choosing between two funds in isolation.
Whichever of QQQ and SCHA 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, QQQ or SCHA?
QQQ has an expense ratio of 0.18% while SCHA charges 0.03%. SCHA is the cheaper option, by $15 a year on a $10,000 investment.
Which performed better, QQQ or SCHA?
Over the past year QQQ returned +25.59% vs +27.23% for SCHA, so SCHA leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +18.73% vs +11.29% for SCHA. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or SCHA?
SCHA has been the more volatile fund at 19.2% annualized versus 17.6% for QQQ. Worst drawdown: QQQ -35.1% vs SCHA -43.0%.
Should I hold both QQQ and SCHA?
QQQ and SCHA have a monthly-return correlation of 0.77, 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 QQQ and SCHA?
5.4% of SCHA's money is in holdings QQQ also owns. 5.4% of SCHA's is in holdings QQQ also owns. They hold 2 positions in common, counted across the 102 positions we hold weights for in QQQ and 1,706 in SCHA.
Which pays a higher dividend, QQQ or SCHA?
QQQ yields 0.44% while SCHA yields 1.07%, so SCHA currently pays the higher dividend yield.
Is SCHA better than QQQ?
SCHA has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, SCHA over 1Y. SCHA is less concentrated, with 9.1% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.