QQQ vs SCHE
QQQ vs SCHE
Invesco QQQ Trust, Series 1 vs Schwab Emerging Markets Equity ETF
Quick Verdict
SCHE has a lower expense ratio. QQQ delivered stronger 1-year returns. SCHE offers more diversification with 1409 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCHE | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $455.8B | $12.5B | |
| Dividend Yield | 0.41% | 2.66% | |
| Holdings | 108 | 2,210 | |
| YTD Return | +18.20% | +10.52% | |
| 1Y Return | +27.63% | +22.39% | |
| 3Y Return (annualized) | +25.54% | +17.52% | |
| 5Y Return (annualized) | +15.12% | +6.65% | |
| Volatility (annualized) | 30.6% | 17.2% | |
| Max Drawdown | -83.0% | -43.1% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 14, 2010 |
QQQ vs SCHE Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab Emerging Markets Equity ETF (SCHE) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +27.63% while SCHE returned +22.39%. Year to date, QQQ is up 18.20% versus a gain of 10.52% for SCHE.
Over three years, QQQ compounded at +25.54% per year against +17.52% for SCHE; over five years the annualized figures are +15.12% and +6.65% respectively. Across the full 17-year window we track, QQQ has the edge at +13.11% annualized vs +3.27%. 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 17.2% for SCHE. 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 -43.1% for SCHE. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCHE 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 2.66% for SCHE.
Holdings Overlap
QQQ and SCHE share 1 holdings out of 1511 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in SCHE | Difference |
|---|---|---|---|
| PDD | 0.25% | 0.82% | 0.57% |
Frequently Asked Questions
Which is cheaper, QQQ or SCHE?
QQQ has an expense ratio of 0.18% while SCHE charges 0.06%. SCHE is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or SCHE?
Over the past year QQQ returned +27.63% vs +22.39% for SCHE, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.11% vs +3.27% for SCHE. Past performance does not guarantee future results.
Which is riskier, QQQ or SCHE?
QQQ has been the more volatile fund at 30.6% annualized versus 17.2% for SCHE. Worst drawdown: QQQ -83.0% vs SCHE -43.1%.
Should I hold both QQQ and SCHE?
QQQ and SCHE have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCHE?
QQQ and SCHE share 1 common holdings with a 0.3% weight overlap. Combined, they hold 1511 unique securities.
Which pays a higher dividend, QQQ or SCHE?
QQQ yields 0.41% while SCHE yields 2.66%, so SCHE currently pays the higher dividend yield.
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