QQQ vs SCHX

Quick Verdict

SCHX has a lower expense ratio. QQQ delivered stronger 1-year returns. SCHX offers more diversification with 750 holdings.

Lower Fees: SCHXHigher Returns: QQQMore Diversified: SCHX

Side-by-Side Comparison

MetricQQQSCHXWinner
Expense Ratio0.18%0.03%
AUM$455.8B$71.1B
Dividend Yield0.41%1.03%
Holdings108750
YTD Return+18.34%+13.41%
1Y Return+28.94%+23.11%
3Y Return (annualized)+25.28%+21.16%
5Y Return (annualized)+15.22%+12.89%
Volatility (annualized)30.6%14.5%
Max Drawdown-83.0%-34.3%
Fund FamilyInvesco (US)Charles Schwab Asset Management
CategoryEquityEquity
InceptionMar 10, 1999Nov 3, 2009

QQQ vs SCHX Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab US Large-Cap ETF (SCHX) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +28.94% while SCHX returned +23.11%. Year to date, QQQ is up 18.34% versus a gain of 13.41% for SCHX.

Over three years, QQQ compounded at +25.28% per year against +21.16% for SCHX; over five years the annualized figures are +15.22% and +12.89% respectively. Across the full 17-year window we track, SCHX has the edge at +13.23% annualized vs +13.12%. 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 14.5% for SCHX. 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 -34.3% for SCHX. 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 0.92. 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 SCHX 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 1.03% for SCHX.

Holdings Overlap

50.6%overlap

QQQ and SCHX share 92 holdings out of 761 unique holdings combined, representing a 50.6% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in QQQWeight in SCHXDifference
NVDA7.88%7.48%0.40%
AAPL7.46%7.30%0.16%
MSFT4.65%4.23%0.42%
AMZNProProPro
MUProProPro
GOOGLProProPro
AVGOProProPro
GOOGProProPro
AMDProProPro
METAProProPro
See all 10 holdings QQQ shares with SCHX
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Frequently Asked Questions

Which is cheaper, QQQ or SCHX?

QQQ has an expense ratio of 0.18% while SCHX charges 0.03%. SCHX is the cheaper option. On a $10,000 investment, that is $15 per year of difference.

Which performed better, QQQ or SCHX?

Over the past year QQQ returned +28.94% vs +23.11% for SCHX, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.12% vs +13.23% for SCHX. Past performance does not guarantee future results.

Which is riskier, QQQ or SCHX?

QQQ has been the more volatile fund at 30.6% annualized versus 14.5% for SCHX. Worst drawdown: QQQ -83.0% vs SCHX -34.3%.

Should I hold both QQQ and SCHX?

QQQ and SCHX have a monthly-return correlation of 0.92, 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 SCHX?

QQQ and SCHX share 92 common holdings with a 50.6% weight overlap. Combined, they hold 761 unique securities.

Which pays a higher dividend, QQQ or SCHX?

QQQ yields 0.41% while SCHX yields 1.03%, so SCHX currently pays the higher dividend yield.

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