QQQ vs SCHM
Invesco QQQ Trust, Series 1 vs Schwab US Mid Cap ETF
Which is better, QQQ or SCHM?
Large Cap Growth against Mid Cap Blend.
SCHM has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. SCHM is less concentrated, with 12.4% 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 | SCHM |
|---|---|---|
| Expense Ratio | 0.18% | 0.03%Best |
| AUM | $483.5B | $14.7B |
| Dividend Yield | 0.44% | 1.24% |
| Holdings | 107 | 495 |
| YTD Return | +17.95%Best | +14.96% |
| 1Y Return | +21.77%Best | +17.46% |
| 3Y Return (annualized) | +25.63%Best | +16.23% |
| 5Y Return (annualized) | +15.24%Best | +7.87% |
| Volatility (annualized) | 17.4% | 17.2%Best |
| Max Drawdown | -35.1%Best | -42.4% |
| $10,000 over 5 years | $20,324Best | $14,605 |
| Top 10 Weight | 46.5% | 12.4%Best |
| Fund Family | Invesco (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Blend |
| Inception | Mar 10, 1999 | Jan 13, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Jan 13, 2011 to Sep 18, 2026 (15.7 years).
QQQ vs SCHM 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 15.7 years both funds cover.
QQQ vs SCHM Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Schwab US Mid Cap ETF (SCHM) is an ETF from Charles Schwab Asset Management. Over the past year QQQ returned +21.77% while SCHM returned +17.46%. Year to date, QQQ is up 17.95% versus a gain of 14.96% for SCHM.
Over three years, QQQ compounded at +25.63% per year against +16.23% for SCHM; over five years the annualized figures are +15.24% and +7.87% respectively. Across the full 16-year window we track, QQQ has the edge at +17.87% annualized vs +10.07%.
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 17.2% for SCHM. 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 -42.4% for SCHM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCHM 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 0.44% against 1.24% for SCHM.
Holdings Overlap
1.2% of QQQ's money is in holdings SCHM also owns. 5.7% of SCHM's money is in holdings QQQ also owns.
SCHM and QQQ share little of their money.
2 positions in common, counted across the 102 positions we hold weights for in QQQ and 492 in SCHM, against full books of 107 and 495.
What only one of them owns
Our book lists 475 positions for SCHM that do not appear in our book for QQQ (90.3% of the fund), and 94 for QQQ that do not appear in SCHM (96.4%).
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.
You are not choosing between two funds in isolation.
Whichever of QQQ and SCHM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or SCHM?
QQQ has an expense ratio of 0.18% while SCHM charges 0.03%. SCHM is the cheaper option, by $15 a year on a $10,000 investment.
Which performed better, QQQ or SCHM?
Over the past year QQQ returned +21.77% vs +17.46% for SCHM, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +17.87% vs +10.07% for SCHM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or SCHM?
QQQ has been the more volatile fund at 17.4% annualized versus 17.2% for SCHM. Worst drawdown: QQQ -35.1% vs SCHM -42.4%.
Should I hold both QQQ and SCHM?
QQQ and SCHM have a monthly-return correlation of 0.79, 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 SCHM?
5.7% of SCHM's money is in holdings QQQ also owns. 5.7% of SCHM's is in holdings QQQ also owns. They hold 2 positions in common, counted across the 102 positions we hold weights for in QQQ and 492 in SCHM.
Which pays a higher dividend, QQQ or SCHM?
QQQ yields 0.44% while SCHM yields 1.24%, so SCHM currently pays the higher dividend yield.
Is SCHM better than QQQ?
SCHM has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. SCHM is less concentrated, with 12.4% 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.