QQQ vs SCHP
Invesco QQQ Trust, Series 1 vs Schwab US TIPs ETF
Quick Verdict
SCHP has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCHP | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $496.3B | $16.3B | |
| Dividend Yield | 0.44% | 4.51% | |
| Holdings | 108 | 49 | |
| YTD Return | +16.23% | +1.34% | |
| 1Y Return | +26.23% | +2.63% | |
| 3Y Return (annualized) | +25.75% | +4.63% | |
| 5Y Return (annualized) | +14.78% | +0.61% | |
| Volatility (annualized) | 30.6% | 5.0% | |
| Max Drawdown | -83.0% | -14.3% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Aug 5, 2010 |
QQQ vs SCHP Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab US TIPs ETF (SCHP) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +26.23% while SCHP returned +2.63%. Year to date, QQQ is up 16.23% versus a gain of 1.34% for SCHP.
Over three years, QQQ compounded at +25.75% per year against +4.63% for SCHP; over five years the annualized figures are +14.78% and +0.61% respectively. Across the full 16-year window we track, QQQ has the edge at +13.02% annualized vs +1.76%. 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 5.0% for SCHP. 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 -14.3% for SCHP. 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCHP 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 4.51% for SCHP.
Holdings Overlap
QQQ and SCHP share 0 holdings out of 145 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 SCHP?
QQQ has an expense ratio of 0.18% while SCHP charges 0.03%. SCHP is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or SCHP?
Over the past year QQQ returned +26.23% vs +2.63% for SCHP, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +13.02% vs +1.76% for SCHP. Past performance does not guarantee future results.
Which is riskier, QQQ or SCHP?
QQQ has been the more volatile fund at 30.6% annualized versus 5.0% for SCHP. Worst drawdown: QQQ -83.0% vs SCHP -14.3%.
Should I hold both QQQ and SCHP?
QQQ and SCHP have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCHP?
QQQ and SCHP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 145 unique securities.
Which pays a higher dividend, QQQ or SCHP?
QQQ yields 0.44% while SCHP yields 4.51%, so SCHP currently pays the higher dividend yield.
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