QQQ vs SCHD
Invesco QQQ Trust, Series 1 vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $455.8B | $103.7B | |
| Dividend Yield | 0.41% | 3.31% | |
| Holdings | 108 | 104 | |
| YTD Return | +19.68% | +26.21% | |
| 1Y Return | +26.75% | +29.99% | |
| 3Y Return (annualized) | +26.25% | +15.73% | |
| 5Y Return (annualized) | +15.39% | +9.67% | |
| Volatility (annualized) | 30.6% | 13.6% | |
| Max Drawdown | -83.0% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Oct 20, 2011 |
QQQ vs SCHD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +26.75% while SCHD returned +29.99%. Year to date, QQQ is up 19.68% versus a gain of 26.21% for SCHD.
Over three years, QQQ compounded at +26.25% per year against +15.73% for SCHD; over five years the annualized figures are +15.39% and +9.67% respectively. Across the full 15-year window we track, QQQ has the edge at +13.15% annualized vs +11.50%. 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 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 -83.0% for QQQ and -33.4% for SCHD. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
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 0.41% against 3.31% for SCHD.
Holdings Overlap
QQQ and SCHD share 8 holdings out of 195 unique holdings combined, representing a 5.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or SCHD?
Over the past year QQQ returned +26.75% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), QQQ annualized +13.15% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, QQQ or SCHD?
QQQ has been the more volatile fund at 30.6% annualized versus 13.6% for SCHD. Worst drawdown: QQQ -83.0% vs SCHD -33.4%.
Should I hold both QQQ and SCHD?
QQQ and SCHD have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCHD?
QQQ and SCHD share 8 common holdings with a 5.0% weight overlap. Combined, they hold 195 unique securities.
Which pays a higher dividend, QQQ or SCHD?
QQQ yields 0.41% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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