QQQ vs SCHA
Invesco QQQ Trust, Series 1 vs Schwab US Small-Cap ETF
Quick Verdict
SCHA has a lower expense ratio. SCHA delivered stronger 1-year returns. SCHA offers more diversification with 1,734 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCHA | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $455.8B | $22.4B | |
| Dividend Yield | 0.41% | 0.99% | |
| Holdings | 108 | 1,734 | |
| YTD Return | +19.68% | +23.22% | |
| 1Y Return | +26.75% | +32.80% | |
| 3Y Return (annualized) | +26.25% | +18.26% | |
| 5Y Return (annualized) | +15.39% | +8.30% | |
| Volatility (annualized) | 30.6% | 19.3% | |
| Max Drawdown | -83.0% | -43.0% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Nov 3, 2009 |
QQQ vs SCHA Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab US Small-Cap ETF (SCHA) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +26.75% while SCHA returned +32.80%. Year to date, QQQ is up 19.68% versus a gain of 23.22% for SCHA.
Over three years, QQQ compounded at +26.25% per year against +18.26% for SCHA; over five years the annualized figures are +15.39% and +8.30% respectively. Across the full 17-year window we track, QQQ has the edge at +13.15% annualized vs +11.48%. 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 19.3% for SCHA. 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 -83.0% for QQQ and -43.0% for SCHA. 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 0.78. 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 0.41% against 0.99% for SCHA.
Holdings Overlap
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. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or SCHA?
Over the past year QQQ returned +26.75% vs +32.80% for SCHA, so SCHA leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.15% vs +11.48% for SCHA. Past performance does not guarantee future results.
Which is riskier, QQQ or SCHA?
QQQ has been the more volatile fund at 30.6% annualized versus 19.3% for SCHA. Worst drawdown: QQQ -83.0% vs SCHA -43.0%.
Should I hold both QQQ and SCHA?
QQQ and SCHA have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCHA?
QQQ and SCHA share 2 common holdings with a 1.4% weight overlap. Combined, they hold 1651 unique securities.
Which pays a higher dividend, QQQ or SCHA?
QQQ yields 0.41% while SCHA yields 0.99%, so SCHA currently pays the higher dividend yield.
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