QQQ vs SCUS

Quick Verdict

SCUS has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: SCUSHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQSCUSWinner
Expense Ratio0.18%0.14%
AUM$455.8B$241M
Dividend Yield0.41%3.91%
Holdings108157
YTD Return+19.68%+1.80%
1Y Return+26.75%+3.57%
3Y Return (annualized)+26.25%-
5Y Return (annualized)+15.39%-
Volatility (annualized)30.6%0.6%
Max Drawdown-83.0%-0.4%
Fund FamilyInvesco (US)Charles Schwab Asset Management
CategoryEquityFixed Income
InceptionMar 10, 1999Aug 13, 2024

QQQ vs SCUS Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab Ultra-Short Income ETF (SCUS) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +26.75% while SCUS returned +3.57%. Year to date, QQQ is up 19.68% versus a gain of 1.80% for SCUS.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 0.6% for SCUS. 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 -0.4% for SCUS. 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 0.03. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while SCUS charges 0.14%. On a $10,000 position that is $18 vs $14 annually, a gap of $4 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.91% for SCUS.

Holdings Overlap

0.9%overlap

QQQ and SCUS share 1 holdings out of 104 unique holdings combined, representing a 0.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QQQWeight in SCUSDifference
AVGO2.91%0.91%2.00%

Frequently Asked Questions

Which is cheaper, QQQ or SCUS?

QQQ has an expense ratio of 0.18% while SCUS charges 0.14%. SCUS is the cheaper option. On a $10,000 investment, that is $4 per year of difference.

Which performed better, QQQ or SCUS?

Over the past year QQQ returned +26.75% vs +3.57% for SCUS, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.15% vs +4.01% for SCUS. Past performance does not guarantee future results.

Which is riskier, QQQ or SCUS?

QQQ has been the more volatile fund at 30.6% annualized versus 0.6% for SCUS. Worst drawdown: QQQ -83.0% vs SCUS -0.4%.

Should I hold both QQQ and SCUS?

QQQ and SCUS have a monthly-return correlation of 0.03, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and SCUS?

QQQ and SCUS share 1 common holdings with a 0.9% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, QQQ or SCUS?

QQQ yields 0.41% while SCUS yields 3.91%, so SCUS currently pays the higher dividend yield.

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