QQQ vs SCHM
Invesco QQQ Trust, Series 1 vs Schwab US Mid Cap ETF
Quick Verdict
SCHM has a lower expense ratio. SCHM delivered stronger 1-year returns. SCHM offers more diversification with 496 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCHM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $496.3B | $15.3B | |
| Dividend Yield | 0.44% | 1.27% | |
| Holdings | 108 | 496 | |
| YTD Return | +19.52% | +21.06% | |
| 1Y Return | +26.68% | +28.52% | |
| 3Y Return (annualized) | +26.64% | +17.40% | |
| 5Y Return (annualized) | +15.36% | +8.56% | |
| Volatility (annualized) | 30.6% | 17.3% | |
| Max Drawdown | -83.0% | -42.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 13, 2011 |
QQQ vs SCHM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab US Mid Cap ETF (SCHM) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +26.68% while SCHM returned +28.52%. Year to date, QQQ is up 19.52% versus a gain of 21.06% for SCHM.
Over three years, QQQ compounded at +26.64% per year against +17.40% for SCHM; over five years the annualized figures are +15.36% and +8.56% respectively. Across the full 16-year window we track, QQQ has the edge at +13.14% annualized vs +10.50%. 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 17.3% 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 -83.0% for QQQ and -42.4% for SCHM. 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 0.79. 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 1.27% for SCHM.
Holdings Overlap
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. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or SCHM?
Over the past year QQQ returned +26.68% vs +28.52% for SCHM, so SCHM leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +13.14% vs +10.50% for SCHM. Past performance does not guarantee future results.
Which is riskier, QQQ or SCHM?
QQQ has been the more volatile fund at 30.6% annualized versus 17.3% for SCHM. Worst drawdown: QQQ -83.0% vs SCHM -42.4%.
Should I hold both QQQ and SCHM?
QQQ and SCHM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCHM?
QQQ and SCHM share 2 common holdings with a 1.2% weight overlap. Combined, they hold 594 unique securities.
Which pays a higher dividend, QQQ or SCHM?
QQQ yields 0.44% while SCHM yields 1.27%, so SCHM currently pays the higher dividend yield.
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