QQQ vs SCHG
Invesco QQQ Trust, Series 1 vs Schwab US Large-Cap Growth ETF
Quick Verdict
SCHG has a lower expense ratio. QQQ delivered stronger 1-year returns. SCHG offers more diversification with 197 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCHG | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.04% | |
| AUM | $496.3B | $63.1B | |
| Dividend Yield | 0.44% | 0.39% | |
| Holdings | 108 | 197 | |
| YTD Return | +16.64% | +8.92% | |
| 1Y Return | +27.27% | +18.18% | |
| 3Y Return (annualized) | +25.96% | +24.67% | |
| 5Y Return (annualized) | +14.54% | +13.42% | |
| Volatility (annualized) | 30.6% | 16.7% | |
| Max Drawdown | -83.0% | -34.6% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 11, 2009 |
QQQ vs SCHG Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab US Large-Cap Growth ETF (SCHG) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +27.27% while SCHG returned +18.18%. Year to date, QQQ is up 16.64% versus a gain of 8.92% for SCHG.
Over three years, QQQ compounded at +25.96% per year against +24.67% for SCHG; over five years the annualized figures are +14.54% and +13.42% respectively. Across the full 17-year window we track, SCHG has the edge at +15.72% annualized vs +13.03%. 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 16.7% for SCHG. 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 -34.6% for SCHG. 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCHG charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.39% for SCHG.
Holdings Overlap
QQQ and SCHG share 46 holdings out of 250 unique holdings combined, representing a 57.0% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, QQQ or SCHG?
QQQ has an expense ratio of 0.18% while SCHG charges 0.04%. SCHG is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, QQQ or SCHG?
Over the past year QQQ returned +27.27% vs +18.18% for SCHG, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.03% vs +15.72% for SCHG. Past performance does not guarantee future results.
Which is riskier, QQQ or SCHG?
QQQ has been the more volatile fund at 30.6% annualized versus 16.7% for SCHG. Worst drawdown: QQQ -83.0% vs SCHG -34.6%.
Should I hold both QQQ and SCHG?
QQQ and SCHG have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and SCHG?
QQQ and SCHG share 46 common holdings with a 57.0% weight overlap. Combined, they hold 250 unique securities.
Which pays a higher dividend, QQQ or SCHG?
QQQ yields 0.44% while SCHG yields 0.39%, so QQQ currently pays the higher dividend yield.
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