QQQ vs SCHD
Invesco QQQ Trust, Series 1 vs Schwab US Dividend Equity ETF
Which is better, QQQ or SCHD?
Large Cap Growth against Large Cap Value.
SCHD has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.5% 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 | SCHD |
|---|---|---|
| Expense Ratio | 0.18% | 0.06%Best |
| AUM | $486.1B | $112.2B |
| Dividend Yield | 0.44% | 3.13% |
| Holdings | 107 | 103 |
| YTD Return | +17.54% | +27.56%Best |
| 1Y Return | +25.59% | +30.29%Best |
| 3Y Return (annualized) | +24.63%Best | +16.37% |
| 5Y Return (annualized) | +14.18%Best | +10.23% |
| Volatility (annualized) | 17.4% | 13.6%Best |
| Max Drawdown | -35.1% | -33.4%Best |
| $10,000 over 5 years | $19,407Best | $16,274 |
| Top 10 Weight | 46.5% | 41.5%Best |
| Fund Family | Invesco (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Mar 10, 1999 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 4, 2026 (14.9 years).
QQQ vs SCHD 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 14.9 years both funds cover.
QQQ vs SCHD Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year QQQ returned +25.59% while SCHD returned +30.29%. Year to date, QQQ is up 17.54% versus a gain of 27.56% for SCHD.
Over three years, QQQ compounded at +24.63% per year against +16.37% for SCHD; over five years the annualized figures are +14.18% and +10.23% respectively. Across the full 15-year window we track, QQQ has the edge at +18.89% annualized vs +11.53%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.4% compared with 13.6% for SCHD. 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 -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.64. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCHD charges 0.06%. On a $10,000 position that is $18 vs $6 annually, a gap of $12 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.13% for SCHD.
Holdings Overlap
5.0% of QQQ's money is in holdings SCHD also owns. 21.9% of SCHD's money is in holdings QQQ also owns.
SCHD and QQQ share little of their money.
8 positions in common, counted across the 102 positions we hold weights for in QQQ and 100 in SCHD, against full books of 107 and 103.
What only one of them owns
Our book lists 90 positions for SCHD that do not appear in our book for QQQ (77.8% of the fund), and 86 for QQQ that do not appear in SCHD (91.9%).
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 QQQ | Weight in SCHD | Difference |
|---|---|---|---|
| AMGNAmgen Inc. | 0.97% | 4.62% | 3.65% |
| TXNTexas Instruments, Inc | 1.12% | 3.53% | 2.41% |
| PEPPepsico Inc. | 0.83% | 3.71% | 2.88% |
| QCOMQualcomm | 0.73% | 2.55% | 1.82% |
| ADPAutomatic Data Processing, Inc. | 0.47% | 2.72% | 2.25% |
| CMCSACOMCAST CORP CLASS A | 0.39% | 2.26% | 1.87% |
| FASTFastenal Co. | 0.25% | 1.49% | 1.24% |
| PAYXPaychex, Inc. | 0.19% | 0.97% | 0.78% |
21.9% of SCHD is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or SCHD?
QQQ has an expense ratio of 0.18% while SCHD charges 0.06%. SCHD is the cheaper option, by $12 a year on a $10,000 investment.
Which performed better, QQQ or SCHD?
Over the past year QQQ returned +25.59% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), QQQ annualized +18.89% vs +11.53% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or SCHD?
QQQ has been the more volatile fund at 17.4% annualized versus 13.6% for SCHD. Worst drawdown: QQQ -35.1% vs SCHD -33.4%.
Should I hold both QQQ and SCHD?
QQQ and SCHD have a monthly-return correlation of 0.64, 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 SCHD?
21.9% of SCHD's money is in holdings QQQ also owns. 21.9% of SCHD's is in holdings QQQ also owns. They hold 8 positions in common, counted across the 102 positions we hold weights for in QQQ and 100 in SCHD.
Which pays a higher dividend, QQQ or SCHD?
QQQ yields 0.44% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than QQQ?
SCHD has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.5% 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.