QQQ vs. SCHD

Last updated Jun 13, 2026

QQQ (Invesco QQQ ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, QQQ returned 21.79%/yr vs 12.91%/yr for SCHD. A 0.63 correlation means they provide meaningful diversification when combined. QQQ charges 0.18%/yr vs 0.06%/yr for SCHD.

Performance

QQQ vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco QQQ ETF (QQQ) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QQQ achieves a 17.57% return, which is significantly lower than SCHD's 20.66% return. Over the past 10 years, QQQ has outperformed SCHD with an annualized return of 21.79%, while SCHD has yielded a comparatively lower 12.91% annualized return.

QQQ

• 1D: 0.59%
• 1M: 0.93%
• YTD: 17.57%
• 6M: 17.85%
• 1Y: 35.82%
• 3Y*: 26.43%
• 5Y*: 16.85%
• 10Y*: 21.79%

SCHD

• 1D: 0.89%
• 1M: 3.37%
• YTD: 20.66%
• 6M: 19.57%
• 1Y: 26.16%
• 3Y*: 14.90%
• 5Y*: 8.75%
• 10Y*: 12.91%

*Multi-year figures are annualized to reflect compound growth (CAGR)

QQQ vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QQQ Invesco QQQ ETF	17.57%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%
SCHD Schwab U.S. Dividend Equity ETF	20.66%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between QQQ and SCHD is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.63

Over the past year, the correlation between QQQ and SCHD has dropped to 0.18 - well below their long-term average of 0.63, suggesting their price drivers have been diverging.

QQQ vs. SCHD - Sectors Allocation Comparison

Sectors	QQQ	SCHD
Technology	53.8%	16.4%
Communication Services	15.8%	6.3%
Consumer Cyclical	12.3%	6.3%
Consumer Defensive	7.7%	19.2%
Healthcare	4.2%	18.8%
Industrials	2.8%	7.5%
Utilities	1.4%	0.0%
Basic Materials	1.1%	1.2%
Energy	0.6%	16.2%
Financial Services	0.2%	9.3%
Real Estate	0.1%	-

Return for Risk

QQQ vs. SCHD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

QQQ

QQQ Risk / Return Rank: 71
QQQ Sharpe Ratio Rank: 75
QQQ Sortino Ratio Rank: 70
QQQ Omega Ratio Rank: 73
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 70

SCHD

SCHD Risk / Return Rank: 87
SCHD Sharpe Ratio Rank: 86
SCHD Sortino Ratio Rank: 90
SCHD Omega Ratio Rank: 83
SCHD Calmar Ratio Rank: 93
SCHD Martin Ratio Rank: 81

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

QQQ vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ ETF (QQQ) and Schwab U.S. Dividend Equity ETF (SCHD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	QQQ	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	2.09	2.41	-0.31
Sortino ratio: Return per unit of downside risk	2.73	3.72	-0.99
Omega ratio: Gain probability vs. loss probability	1.37	1.43	-0.06
Calmar ratio: Return relative to maximum drawdown	3.01	5.70	-2.69
Martin ratio: Return relative to average drawdown	11.22	13.97	-2.74

QQQ vs. SCHD - Sharpe Ratio Comparison

The current QQQ Sharpe Ratio is 2.09, which is comparable to the SCHD Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of QQQ and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

QQQ vs. SCHD - Drawdown Comparison

The maximum QQQ drawdown since its inception was -82.97%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for QQQ and SCHD.

Drawdown Indicators

	QQQ	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-82.97%	-33.37%	-49.60%
Max Drawdown (1Y) Largest decline over 1 year	-11.96%	-4.61%	-7.35%
Max Drawdown (3Y) Largest decline over 3 years	-22.77%	-16.13%	-6.64%
Max Drawdown (5Y) Largest decline over 5 years	-35.12%	-16.85%	-18.27%
Max Drawdown (10Y) Largest decline over 10 years	-35.12%	-33.37%	-1.75%
Current Drawdown Current decline from peak	-3.33%	-0.03%	-3.30%
Average Drawdown Average peak-to-trough decline	-32.75%	-3.31%	-29.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.20%	1.89%	+1.31%

Volatility

QQQ vs. SCHD - Volatility Comparison

Invesco QQQ ETF (QQQ) has a higher volatility of 7.56% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.05%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QQQ	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.56%	3.05%	+4.51%
Volatility (6M) Calculated over the trailing 6-month period	13.81%	7.53%	+6.28%
Volatility (1Y) Calculated over the trailing 1-year period	17.19%	10.93%	+6.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.55%	14.38%	+8.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.38%	16.72%	+5.66%

QQQ vs. SCHD - Expense Ratio Comparison

QQQ has a 0.18% expense ratio, which is higher than SCHD's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

QQQ vs. SCHD - Dividend Comparison

QQQ's dividend yield for the trailing twelve months is around 0.39%, less than SCHD's 3.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQ Invesco QQQ ETF	0.39%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%
SCHD Schwab U.S. Dividend Equity ETF	3.22%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%

Frequently Asked Questions

Can I hold both QQQ and SCHD in my portfolio?

QQQ and SCHD have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QQQ or SCHD?

QQQ has higher volatility (7.56%) compared to SCHD (3.05%). In terms of maximum drawdown, QQQ dropped -82.97% vs SCHD's -33.37%.

Which ETF is better, QQQ or SCHD?

On 10-year performance, QQQ leads with 21.79% vs 12.91% for SCHD. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 3.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QQQ or SCHD?

Over the 10-year period, QQQ has performed better with a 21.79% return vs 12.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QQQ or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.18% for QQQ.

Which ETF pays a higher dividend yield, QQQ or SCHD?

SCHD has the higher dividend yield at 3.22%, compared with 0.39% for QQQ.

What is the main difference between QQQ and SCHD?

QQQ is categorized as Nasdaq-100, while SCHD is Dividend. QQQ tracks NASDAQ-100 Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: Invesco and Charles Schwab. Their fees differ too: 0.18% for QQQ and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.41 vs 2.09), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.