SCHD vs. QQQ
Compare and contrast key facts about Schwab US Dividend Equity ETF (SCHD) and Invesco QQQ (QQQ).
SCHD and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SCHD is a passively managed fund by Charles Schwab that tracks the performance of the Dow Jones U.S. Dividend 100 Index. It was launched on Oct 20, 2011. 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 SCHD 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: SCHD or QQQ.
Key characteristics
| SCHD | QQQ | |
|---|---|---|
| YTD Return | 3.93% | 7.60% |
| 1Y Return | 15.69% | 37.73% |
| 3Y Return (Ann) | 3.95% | 10.32% |
| 5Y Return (Ann) | 12.13% | 19.78% |
| 10Y Return (Ann) | 11.13% | 18.64% |
| Sharpe Ratio | 1.36 | 2.27 |
| Daily Std Dev | 11.21% | 16.26% |
| Max Drawdown | -33.37% | -82.98% |
| Current Drawdown | -2.63% | -1.42% |
Correlation
The correlation between SCHD and QQQ is 0.69, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
SCHD vs. QQQ - Performance Comparison
In the year-to-date period, SCHD achieves a 3.93% return, which is significantly lower than QQQ's 7.60% return. Over the past 10 years, SCHD has underperformed QQQ with an annualized return of 11.13%, while QQQ has yielded a comparatively higher 18.64% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SCHD vs. QQQ - Expense Ratio Comparison
SCHD has a 0.06% 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%.
Risk-Adjusted Performance
SCHD vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab US Dividend Equity ETF (SCHD) 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
SCHD vs. QQQ - Dividend Comparison
SCHD's dividend yield for the trailing twelve months is around 3.40%, more than QQQ's 0.60% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHD Schwab US Dividend Equity ETF | 3.40% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% | 2.63% | 2.47% |
QQQ Invesco QQQ | 0.60% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
SCHD vs. QQQ - Drawdown Comparison
The maximum SCHD drawdown since its inception was -33.37%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for SCHD and QQQ. For additional features, visit the drawdowns tool.
Volatility
SCHD vs. QQQ - Volatility Comparison
The current volatility for Schwab US Dividend Equity ETF (SCHD) is 3.56%, while Invesco QQQ (QQQ) has a volatility of 5.78%. This indicates that SCHD 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.