QQQ vs SCHY
Invesco QQQ Trust, Series 1 vs Schwab International Dividend Equity ETF
Quick Verdict
SCHY has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCHY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.08% | |
| AUM | $496.3B | $2.5B | |
| Dividend Yield | 0.44% | 3.33% | |
| Holdings | 108 | 106 | |
| YTD Return | +16.64% | +13.86% | |
| 1Y Return | +27.27% | +23.00% | |
| 3Y Return (annualized) | +25.96% | +18.28% | |
| 5Y Return (annualized) | +14.54% | +9.18% | |
| Volatility (annualized) | 30.6% | 13.8% | |
| Max Drawdown | -83.0% | -24.0% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Apr 28, 2021 |
QQQ vs SCHY Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab International Dividend Equity ETF (SCHY) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +27.27% while SCHY returned +23.00%. Year to date, QQQ is up 16.64% versus a gain of 13.86% for SCHY.
Over three years, QQQ compounded at +25.96% per year against +18.28% for SCHY; over five years the annualized figures are +14.54% and +9.18% respectively. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs +9.58%. 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 13.8% for SCHY. 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 -24.0% for SCHY. 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 SCHY charges 0.08%. On a $10,000 position that is $18 vs $8 annually, a gap of $10 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.33% for SCHY.
Holdings Overlap
QQQ and SCHY share 1 holdings out of 208 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in SCHY | Difference |
|---|---|---|---|
| ROP | 0.17% | 4.32% | 4.15% |
Frequently Asked Questions
Which is cheaper, QQQ or SCHY?
QQQ has an expense ratio of 0.18% while SCHY charges 0.08%. SCHY is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, QQQ or SCHY?
Over the past year QQQ returned +27.27% vs +23.00% for SCHY, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.03% vs +9.58% for SCHY. Past performance does not guarantee future results.
Which is riskier, QQQ or SCHY?
QQQ has been the more volatile fund at 30.6% annualized versus 13.8% for SCHY. Worst drawdown: QQQ -83.0% vs SCHY -24.0%.
Should I hold both QQQ and SCHY?
QQQ and SCHY 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 SCHY?
QQQ and SCHY share 1 common holdings with a 0.2% weight overlap. Combined, they hold 208 unique securities.
Which pays a higher dividend, QQQ or SCHY?
QQQ yields 0.44% while SCHY yields 3.33%, so SCHY currently pays the higher dividend yield.
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