QQQ vs SCYB
Invesco QQQ Trust, Series 1 vs Schwab High Yield Bond ETF
Quick Verdict
SCYB has a lower expense ratio. QQQ delivered stronger 1-year returns. SCYB offers more diversification with 1,837 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCYB | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $496.3B | $2.8B | |
| Dividend Yield | 0.44% | 6.95% | |
| Holdings | 108 | 1,837 | |
| YTD Return | +19.52% | +2.53% | |
| 1Y Return | +26.68% | +5.48% | |
| 3Y Return (annualized) | +26.64% | +8.32% | |
| 5Y Return (annualized) | +15.36% | - | |
| Volatility (annualized) | 30.6% | 4.4% | |
| Max Drawdown | -83.0% | -4.9% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Jul 11, 2023 |
QQQ vs SCYB Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab High Yield Bond ETF (SCYB) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +26.68% while SCYB returned +5.48%. Year to date, QQQ is up 19.52% versus a gain of 2.53% for SCYB.
Over three years, QQQ compounded at +26.64% per year against +8.32% for SCYB. Across the full 3-year window we track, QQQ has the edge at +13.14% annualized vs +8.17%. 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 4.4% for SCYB. 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 -4.9% for SCYB. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCYB 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 6.95% for SCYB.
Holdings Overlap
QQQ and SCYB share 0 holdings out of 210 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 SCYB?
QQQ has an expense ratio of 0.18% while SCYB charges 0.03%. SCYB is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or SCYB?
Over the past year QQQ returned +26.68% vs +5.48% for SCYB, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.14% vs +8.17% for SCYB. Past performance does not guarantee future results.
Which is riskier, QQQ or SCYB?
QQQ has been the more volatile fund at 30.6% annualized versus 4.4% for SCYB. Worst drawdown: QQQ -83.0% vs SCYB -4.9%.
Should I hold both QQQ and SCYB?
QQQ and SCYB have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCYB?
QQQ and SCYB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 210 unique securities.
Which pays a higher dividend, QQQ or SCYB?
QQQ yields 0.44% while SCYB yields 6.95%, so SCYB currently pays the higher dividend yield.
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