QQQ vs SCHJ
QQQ vs SCHJ
Invesco QQQ Trust, Series 1 vs Schwab 1-5 Year Corporate Bond ETF
Quick Verdict
SCHJ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCHJ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $455.8B | $848M | |
| Dividend Yield | 0.41% | 4.49% | |
| Holdings | 108 | 3,132 | |
| YTD Return | +16.83% | +0.56% | |
| 1Y Return | +26.58% | +2.72% | |
| 3Y Return (annualized) | +24.70% | +5.13% | |
| 5Y Return (annualized) | +14.88% | +2.21% | |
| Volatility (annualized) | 30.6% | 3.4% | |
| Max Drawdown | -83.0% | -13.6% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Oct 10, 2019 |
QQQ vs SCHJ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab 1-5 Year Corporate Bond ETF (SCHJ) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +26.58% while SCHJ returned +2.72%. Year to date, QQQ is up 16.83% versus a gain of 0.56% for SCHJ.
Over three years, QQQ compounded at +24.70% per year against +5.13% for SCHJ; over five years the annualized figures are +14.88% and +2.21% respectively. Across the full 7-year window we track, QQQ has the edge at +13.06% annualized vs +2.04%. 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 3.4% for SCHJ. 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 -13.6% for SCHJ. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCHJ 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 4.49% for SCHJ.
Holdings Overlap
QQQ and SCHJ share 0 holdings out of 123 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 SCHJ?
QQQ has an expense ratio of 0.18% while SCHJ charges 0.03%. SCHJ is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or SCHJ?
Over the past year QQQ returned +26.58% vs +2.72% for SCHJ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), QQQ annualized +13.06% vs +2.04% for SCHJ. Past performance does not guarantee future results.
Which is riskier, QQQ or SCHJ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.4% for SCHJ. Worst drawdown: QQQ -83.0% vs SCHJ -13.6%.
Should I hold both QQQ and SCHJ?
QQQ and SCHJ have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCHJ?
QQQ and SCHJ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 123 unique securities.
Which pays a higher dividend, QQQ or SCHJ?
QQQ yields 0.41% while SCHJ yields 4.49%, so SCHJ currently pays the higher dividend yield.
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