SCHB vs. QQQ
Compare and contrast key facts about Schwab U.S. Broad Market ETF (SCHB) and Invesco QQQ (QQQ).
SCHB and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SCHB is a passively managed fund by Charles Schwab that tracks the performance of the Dow Jones U.S. Broad Stock Market Total Return Index. It was launched on Nov 3, 2009. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both SCHB and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SCHB or QQQ.
Performance
SCHB vs. QQQ - Performance Comparison
Returns By Period
In the year-to-date period, SCHB achieves a 26.08% return, which is significantly higher than QQQ's 21.78% return. Over the past 10 years, SCHB has underperformed QQQ with an annualized return of 14.91%, while QQQ has yielded a comparatively higher 17.95% annualized return.
SCHB
26.08%
0.89%
12.88%
36.13%
17.19%
14.91%
QQQ
21.78%
1.15%
10.25%
29.54%
20.42%
17.95%
Key characteristics
| SCHB | QQQ | |
|---|---|---|
| Sharpe Ratio | 2.88 | 1.70 |
| Sortino Ratio | 3.82 | 2.29 |
| Omega Ratio | 1.53 | 1.31 |
| Calmar Ratio | 4.23 | 2.19 |
| Martin Ratio | 18.57 | 7.96 |
| Ulcer Index | 1.94% | 3.72% |
| Daily Std Dev | 12.55% | 17.39% |
| Max Drawdown | -35.27% | -82.98% |
| Current Drawdown | -2.45% | -3.42% |
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SCHB vs. QQQ - Expense Ratio Comparison
SCHB has a 0.03% expense ratio, which is lower than QQQ's 0.20% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Correlation
The correlation between SCHB and QQQ is 0.89, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
SCHB vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Broad Market ETF (SCHB) and Invesco QQQ (QQQ). 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.
Dividends
SCHB vs. QQQ - Dividend Comparison
SCHB's dividend yield for the trailing twelve months is around 1.20%, more than QQQ's 0.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHB Schwab U.S. Broad Market ETF | 1.20% | 1.40% | 1.61% | 1.21% | 1.63% | 1.80% | 2.13% | 1.65% | 1.86% | 2.00% | 1.72% | 1.63% |
QQQ Invesco QQQ | 0.61% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
SCHB vs. QQQ - Drawdown Comparison
The maximum SCHB drawdown since its inception was -35.27%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for SCHB and QQQ. For additional features, visit the drawdowns tool.
Volatility
SCHB vs. QQQ - Volatility Comparison
The current volatility for Schwab U.S. Broad Market ETF (SCHB) is 4.28%, while Invesco QQQ (QQQ) has a volatility of 5.62%. This indicates that SCHB experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.