QQQ vs SCMB
Invesco QQQ Trust, Series 1 vs Schwab Municipal Bond ETF
Quick Verdict
SCMB has a lower expense ratio. QQQ delivered stronger 1-year returns. SCMB offers more diversification with 6,774 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCMB | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $496.3B | $4.0B | |
| Dividend Yield | 0.44% | 3.59% | |
| Holdings | 108 | 6,774 | |
| YTD Return | +16.23% | +0.25% | |
| 1Y Return | +26.23% | +4.40% | |
| 3Y Return (annualized) | +25.75% | +3.27% | |
| 5Y Return (annualized) | +14.78% | - | |
| Volatility (annualized) | 30.6% | 6.0% | |
| Max Drawdown | -83.0% | -6.1% | |
| Fund Family | Invesco (US) | Charles Schwab Investment Mangement | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | Oct 11, 2022 |
QQQ vs SCMB Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab Municipal Bond ETF (SCMB) is a ETF from Charles Schwab Investment Mangement. Over the past year QQQ returned +26.23% while SCMB returned +4.40%. Year to date, QQQ is up 16.23% versus a gain of 0.25% for SCMB.
Over three years, QQQ compounded at +25.75% per year against +3.27% for SCMB. Across the full 4-year window we track, QQQ has the edge at +13.02% annualized vs +3.51%. 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 6.0% for SCMB. 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 -6.1% for SCMB. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCMB 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 3.59% for SCMB.
Holdings Overlap
QQQ and SCMB share 0 holdings out of 152 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 SCMB?
QQQ has an expense ratio of 0.18% while SCMB charges 0.03%. SCMB is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or SCMB?
Over the past year QQQ returned +26.23% vs +4.40% for SCMB, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.02% vs +3.51% for SCMB. Past performance does not guarantee future results.
Which is riskier, QQQ or SCMB?
QQQ has been the more volatile fund at 30.6% annualized versus 6.0% for SCMB. Worst drawdown: QQQ -83.0% vs SCMB -6.1%.
Should I hold both QQQ and SCMB?
QQQ and SCMB have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCMB?
QQQ and SCMB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 152 unique securities.
Which pays a higher dividend, QQQ or SCMB?
QQQ yields 0.44% while SCMB yields 3.59%, so SCMB currently pays the higher dividend yield.
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