SCHD vs TQQQ
Schwab US Dividend Equity ETF vs ProShares UltraPro QQQ
Quick Verdict
SCHD has a lower expense ratio. TQQQ delivered stronger 1-year returns. TQQQ offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | TQQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.82% | |
| AUM | $103.7B | $31.4B | |
| Dividend Yield | 3.31% | 0.46% | |
| Holdings | 104 | 128 | |
| YTD Return | +26.21% | +47.96% | |
| 1Y Return | +29.99% | +63.71% | |
| 3Y Return (annualized) | +15.73% | +58.16% | |
| 5Y Return (annualized) | +9.67% | +18.75% | |
| Volatility (annualized) | 13.6% | 55.3% | |
| Max Drawdown | -33.4% | -81.7% | |
| Fund Family | Charles Schwab Asset Management | ProShares | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Feb 9, 2010 |
SCHD vs TQQQ Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and ProShares UltraPro QQQ (TQQQ) is a ETF from ProShares. Over the past year SCHD returned +29.99% while TQQQ returned +63.71%. Year to date, SCHD is up 26.21% versus a gain of 47.96% for TQQQ.
Over three years, SCHD compounded at +15.73% per year against +58.16% for TQQQ; over five years the annualized figures are +9.67% and +18.75% respectively. Across the full 15-year window we track, TQQQ has the edge at +43.22% annualized vs +11.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TQQQ has been the more volatile fund, with annualized monthly volatility of 55.3% compared with 13.6% for SCHD. 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 -33.4% for SCHD and -81.7% for TQQQ. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TQQQ charges 0.82%. On a $10,000 position that is $6 vs $82 annually, a gap of $76 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.46% for TQQQ.
Holdings Overlap
SCHD and TQQQ share 8 holdings out of 196 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or TQQQ?
SCHD has an expense ratio of 0.06% while TQQQ charges 0.82%. SCHD is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, SCHD or TQQQ?
Over the past year SCHD returned +29.99% vs +63.71% for TQQQ, so TQQQ leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.50% vs +43.22% for TQQQ. Past performance does not guarantee future results.
Which is riskier, SCHD or TQQQ?
TQQQ has been the more volatile fund at 55.3% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TQQQ -81.7%.
Should I hold both SCHD and TQQQ?
SCHD and TQQQ have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TQQQ?
SCHD and TQQQ share 8 common holdings with a 1.6% weight overlap. Combined, they hold 196 unique securities.
Which pays a higher dividend, SCHD or TQQQ?
SCHD yields 3.31% while TQQQ yields 0.46%, so SCHD currently pays the higher dividend yield.
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