QQQ vs SCHQ
Invesco QQQ Trust, Series 1 vs Schwab Long-Term US Treasury ETF
Quick Verdict
SCHQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $496.3B | $803M | |
| Dividend Yield | 0.44% | 4.91% | |
| Holdings | 108 | 100 | |
| YTD Return | +16.64% | -2.72% | |
| 1Y Return | +27.27% | +0.09% | |
| 3Y Return (annualized) | +25.96% | +0.91% | |
| 5Y Return (annualized) | +14.54% | -7.20% | |
| Volatility (annualized) | 30.6% | 13.5% | |
| Max Drawdown | -83.0% | -46.7% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Oct 10, 2019 |
QQQ vs SCHQ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab Long-Term US Treasury ETF (SCHQ) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +27.27% while SCHQ returned +0.09%. Year to date, QQQ is up 16.64% versus a loss of 2.72% for SCHQ.
Over three years, QQQ compounded at +25.96% per year against +0.91% for SCHQ; over five years the annualized figures are +14.54% and -7.20% respectively. Across the full 7-year window we track, QQQ has the edge at +13.03% annualized vs -4.41%. 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 13.5% for SCHQ. 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 -46.7% for SCHQ. 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCHQ 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 4.91% for SCHQ.
Holdings Overlap
QQQ and SCHQ share 0 holdings out of 194 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 SCHQ?
QQQ has an expense ratio of 0.18% while SCHQ charges 0.03%. SCHQ is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or SCHQ?
Over the past year QQQ returned +27.27% vs +0.09% for SCHQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), QQQ annualized +13.03% vs -4.41% for SCHQ. Past performance does not guarantee future results.
Which is riskier, QQQ or SCHQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.5% for SCHQ. Worst drawdown: QQQ -83.0% vs SCHQ -46.7%.
Should I hold both QQQ and SCHQ?
QQQ and SCHQ have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCHQ?
QQQ and SCHQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 194 unique securities.
Which pays a higher dividend, QQQ or SCHQ?
QQQ yields 0.44% while SCHQ yields 4.91%, so SCHQ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.