QQQ vs SWTSX
Invesco QQQ Trust, Series 1 vs Schwab Total Stock Market Index Fund
Quick Verdict
SWTSX has a lower expense ratio. QQQ delivered stronger 1-year returns. SWTSX offers more diversification with 2,987 holdings.
Side-by-Side Comparison
| Metric | QQQ | SWTSX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $496.3B | $46.0B | |
| Dividend Yield | 0.44% | 1.00% | |
| Holdings | 108 | 2,987 | |
| YTD Return | +16.30% | +12.71% | |
| 1Y Return | +24.83% | +18.93% | |
| 3Y Return (annualized) | +25.48% | -37.30% | |
| 5Y Return (annualized) | +14.50% | -25.23% | |
| Volatility (annualized) | 30.6% | 41.6% | |
| Max Drawdown | -83.0% | -86.0% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 1, 1999 |
QQQ vs SWTSX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab Total Stock Market Index Fund (SWTSX) is a mutual fund from Charles Schwab Asset Management. Over the past year QQQ returned +24.83% while SWTSX returned +18.93%. Year to date, QQQ is up 16.30% versus a gain of 12.71% for SWTSX.
Over three years, QQQ compounded at +25.48% per year against -37.30% for SWTSX; over five years the annualized figures are +14.50% and -25.23% respectively. Across the full 5-year window we track, QQQ has the edge at +13.01% annualized vs -25.23%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SWTSX has been the more volatile fund, with annualized monthly volatility of 41.6% compared with 30.6% for QQQ. 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 -86.0% for SWTSX. 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SWTSX 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 1.00% for SWTSX.
Holdings Overlap
QQQ and SWTSX share 90 holdings out of 2972 unique holdings combined, representing a 44.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SWTSX?
QQQ has an expense ratio of 0.18% while SWTSX charges 0.03%. SWTSX is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or SWTSX?
Over the past year QQQ returned +24.83% vs +18.93% for SWTSX, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.01% vs -25.23% for SWTSX. Past performance does not guarantee future results.
Which is riskier, QQQ or SWTSX?
SWTSX has been the more volatile fund at 41.6% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SWTSX -86.0%.
Should I hold both QQQ and SWTSX?
QQQ and SWTSX have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SWTSX?
QQQ and SWTSX share 90 common holdings with a 44.1% weight overlap. Combined, they hold 2972 unique securities.
Which pays a higher dividend, QQQ or SWTSX?
QQQ yields 0.44% while SWTSX yields 1.00%, so SWTSX currently pays the higher dividend yield.
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