QQQ vs SCHZ
QQQ vs SCHZ
Invesco QQQ Trust, Series 1 vs Schwab US Aggregate Bond ETF
Quick Verdict
SCHZ has a lower expense ratio. QQQ delivered stronger 1-year returns. SCHZ offers more diversification with 696 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCHZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $455.8B | $10.5B | |
| Dividend Yield | 0.41% | 4.10% | |
| Holdings | 108 | 11,809 | |
| YTD Return | +18.20% | -0.32% | |
| 1Y Return | +27.63% | +2.05% | |
| 3Y Return (annualized) | +25.54% | +3.82% | |
| 5Y Return (annualized) | +15.12% | -0.34% | |
| Volatility (annualized) | 30.6% | 4.5% | |
| Max Drawdown | -83.0% | -19.7% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Jul 14, 2011 |
QQQ vs SCHZ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Schwab US Aggregate Bond ETF (SCHZ) is a ETF from Charles Schwab Asset Management. Over the past year QQQ returned +27.63% while SCHZ returned +2.05%. Year to date, QQQ is up 18.20% versus a loss of 0.32% for SCHZ.
Over three years, QQQ compounded at +25.54% per year against +3.82% for SCHZ; over five years the annualized figures are +15.12% and -0.34% respectively. Across the full 15-year window we track, QQQ has the edge at +13.11% annualized vs +0.56%. 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 4.5% for SCHZ. 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 -19.7% for SCHZ. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCHZ 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 4.10% for SCHZ.
Holdings Overlap
QQQ and SCHZ share 0 holdings out of 799 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 SCHZ?
QQQ has an expense ratio of 0.18% while SCHZ charges 0.03%. SCHZ is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or SCHZ?
Over the past year QQQ returned +27.63% vs +2.05% for SCHZ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), QQQ annualized +13.11% vs +0.56% for SCHZ. Past performance does not guarantee future results.
Which is riskier, QQQ or SCHZ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.5% for SCHZ. Worst drawdown: QQQ -83.0% vs SCHZ -19.7%.
Should I hold both QQQ and SCHZ?
QQQ and SCHZ have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCHZ?
QQQ and SCHZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 799 unique securities.
Which pays a higher dividend, QQQ or SCHZ?
QQQ yields 0.41% while SCHZ yields 4.10%, so SCHZ currently pays the higher dividend yield.
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