QQQ vs SCHO
Invesco QQQ Trust, Series 1 vs Schwab Short-Term US Treasury ETF
Quick Verdict
SCHO has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCHO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $496.3B | $13.0B | |
| Dividend Yield | 0.44% | 3.90% | |
| Holdings | 108 | 97 | |
| YTD Return | +16.23% | +1.17% | |
| 1Y Return | +26.23% | +2.89% | |
| 3Y Return (annualized) | +25.75% | +4.25% | |
| 5Y Return (annualized) | +14.78% | +1.88% | |
| Volatility (annualized) | 30.6% | 1.4% | |
| Max Drawdown | -83.0% | -6.3% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Aug 5, 2010 |
QQQ vs SCHO Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab Short-Term US Treasury ETF (SCHO) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +26.23% while SCHO returned +2.89%. Year to date, QQQ is up 16.23% versus a gain of 1.17% for SCHO.
Over three years, QQQ compounded at +25.75% per year against +4.25% for SCHO; over five years the annualized figures are +14.78% and +1.88% respectively. Across the full 16-year window we track, QQQ has the edge at +13.02% annualized vs +0.75%. 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 1.4% for SCHO. 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 -6.3% for SCHO. 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 0.12. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCHO 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 3.90% for SCHO.
Holdings Overlap
QQQ and SCHO share 0 holdings out of 177 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SCHO?
QQQ has an expense ratio of 0.18% while SCHO charges 0.03%. SCHO is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or SCHO?
Over the past year QQQ returned +26.23% vs +2.89% for SCHO, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +13.02% vs +0.75% for SCHO. Past performance does not guarantee future results.
Which is riskier, QQQ or SCHO?
QQQ has been the more volatile fund at 30.6% annualized versus 1.4% for SCHO. Worst drawdown: QQQ -83.0% vs SCHO -6.3%.
Should I hold both QQQ and SCHO?
QQQ and SCHO have a monthly-return correlation of 0.12, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCHO?
QQQ and SCHO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 177 unique securities.
Which pays a higher dividend, QQQ or SCHO?
QQQ yields 0.44% while SCHO yields 3.90%, so SCHO currently pays the higher dividend yield.
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