QQQ vs SCHB

Quick Verdict

SCHB has a lower expense ratio. QQQ delivered stronger 1-year returns. SCHB offers more diversification with 1569 holdings.

Lower Fees: SCHBHigher Returns: QQQMore Diversified: SCHB

Side-by-Side Comparison

MetricQQQSCHBWinner
Expense Ratio0.18%0.03%
AUM$455.8B$42.9B
Dividend Yield0.41%1.04%
Holdings1082,400
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 FamilyInvesco (US)Charles Schwab Asset Management
CategoryEquityEquity
InceptionMar 10, 1999Nov 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

45.4%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

StockWeight in QQQWeight in SCHBDifference
NVDA7.88%6.72%1.16%
AAPL7.46%5.91%1.55%
MSFT4.65%4.36%0.29%
AMZNProProPro
GOOGLProProPro
MUProProPro
AVGOProProPro
GOOGProProPro
METAProProPro
TSLAProProPro
See all 10 holdings QQQ shares with SCHB
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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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