QQQ vs SCHB
QQQ vs SCHB
Invesco QQQ Trust, Series 1 vs Schwab US Broad Market ETF
Quick Verdict
SCHB has a lower expense ratio. QQQ delivered stronger 1-year returns. SCHB offers more diversification with 1569 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCHB | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $455.8B | $42.9B | |
| Dividend Yield | 0.41% | 1.04% | |
| Holdings | 108 | 2,400 | |
| YTD Return | +14.45% | +11.85% | |
| 1Y Return | +24.70% | +21.63% | |
| 3Y Return (annualized) | +24.19% | +20.40% | |
| 5Y Return (annualized) | +14.49% | +11.99% | |
| Volatility (annualized) | 30.6% | 14.8% | |
| Max Drawdown | -83.0% | -35.3% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Nov 3, 2009 |
QQQ vs SCHB Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab US Broad Market ETF (SCHB) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +24.70% while SCHB returned +21.63%. Year to date, QQQ is up 14.45% versus a gain of 11.85% for SCHB.
Over three years, QQQ compounded at +24.19% per year against +20.40% for SCHB; over five years the annualized figures are +14.49% and +11.99% respectively. Across the full 17-year window we track, QQQ has the edge at +12.98% annualized vs +12.96%. 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 14.8% for SCHB. 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 -35.3% for SCHB. 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCHB 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 0.41% against 1.04% for SCHB.
Holdings Overlap
QQQ and SCHB share 90 holdings out of 1582 unique holdings combined, representing a 45.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in SCHB | Difference |
|---|---|---|---|
| NVDA | 7.88% | 6.72% | 1.16% |
| AAPL | 7.46% | 5.91% | 1.55% |
| MSFT | 4.65% | 4.36% | 0.29% |
| AMZN | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
See all 10 holdings QQQ shares with SCHB Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, QQQ or SCHB?
QQQ has an expense ratio of 0.18% while SCHB charges 0.03%. SCHB is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or SCHB?
Over the past year QQQ returned +24.70% vs +21.63% for SCHB, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +12.98% vs +12.96% for SCHB. Past performance does not guarantee future results.
Which is riskier, QQQ or SCHB?
QQQ has been the more volatile fund at 30.6% annualized versus 14.8% for SCHB. Worst drawdown: QQQ -83.0% vs SCHB -35.3%.
Should I hold both QQQ and SCHB?
QQQ and SCHB have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and SCHB?
QQQ and SCHB share 90 common holdings with a 45.4% weight overlap. Combined, they hold 1582 unique securities.
Which pays a higher dividend, QQQ or SCHB?
QQQ yields 0.41% while SCHB yields 1.04%, so SCHB currently pays the higher dividend yield.
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