SCHE vs. QQQ

Last updated Aug 2, 2026

SCHE (Schwab Emerging Markets Equity ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - SCHE is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, SCHE returned 7.97%/yr vs 20.44%/yr for QQQ. Their 0.67 correlation means they have sometimes moved together and sometimes differently. SCHE charges 0.11%/yr vs 0.18%/yr for QQQ.

Performance

SCHE vs. QQQ - Performance Comparison

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

Returns By Period

In the year-to-date period, SCHE achieves a 10.15% return, which is significantly lower than QQQ's 12.26% return. Over the past 10 years, SCHE has underperformed QQQ with an annualized return of 7.97%, while QQQ has yielded a comparatively higher 20.44% annualized return.

SCHE

• 1D: 0.87%
• 1M: 0.50%
• 6M: 4.90%
• YTD: 10.15%
• 1Y: 22.24%
• 3Y*: 15.34%
• 5Y*: 6.23%
• 10Y*: 7.97%
• ALL TIME*: 4.92%

QQQ

• 1D: 0.65%
• 1M: -3.45%
• 6M: 10.89%
• YTD: 12.26%
• 1Y: 24.81%
• 3Y*: 22.29%
• 5Y*: 14.23%
• 10Y*: 20.44%
• ALL TIME*: 10.64%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
QQQ Invesco QQQ ETF	$30.32B	$28.40B	$31.45B
SCHE Schwab Emerging Markets Equity ETF	$121.98M	$115.93M	$116.46M

SCHE vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHE Schwab Emerging Markets Equity ETF	10.15%	26.54%	10.60%	8.93%	-17.84%	-0.65%	14.49%	20.31%	-13.57%	32.70%
QQQ Invesco QQQ ETF	12.26%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between SCHE and QQQ is 0.77, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.77
Correlation (3Y) Balances recent behavior with more history.	0.64
Correlation (5Y) Shows whether the relationship held over a longer period.	0.63
Correlation (10Y) Provides a long-term view across more market conditions.	0.65
Correlation (All Time) Calculated using the full available price history since Jan 14, 2010	0.67

The correlation between SCHE and QQQ shifts across timeframes, from 0.63 (5 years) to 0.77 (1 year), reflecting how their relationship changes across market environments.

SCHE vs. QQQ - Sectors Allocation Comparison

Sectors	SCHE	QQQ
Technology	33.8%	60.9%
Financial Services	21.1%	0.2%
Consumer Cyclical	8.9%	10.7%
Communication Services	7.1%	13.1%
Basic Materials	7.0%	1.0%
Industrials	6.8%	2.7%
Energy	4.2%	0.5%
Healthcare	3.4%	3.6%
Consumer Defensive	3.3%	6.3%
Utilities	2.8%	1.1%
Real Estate	1.6%	0.1%

Return for Risk

SCHE vs. QQQ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SCHE

SCHE Risk / Return Rank: 52
SCHE Sharpe Ratio Rank: 50
SCHE Sortino Ratio Rank: 49
SCHE Omega Ratio Rank: 50
SCHE Calmar Ratio Rank: 55
SCHE Martin Ratio Rank: 55

QQQ

QQQ Risk / Return Rank: 49
QQQ Sharpe Ratio Rank: 47
QQQ Sortino Ratio Rank: 46
QQQ Omega Ratio Rank: 45
QQQ Calmar Ratio Rank: 53
QQQ Martin Ratio Rank: 52

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SCHE vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and Invesco QQQ ETF (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.

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.

	SCHE	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.22	1.16	+0.06
Sortino ratio: Return per unit of downside risk	1.74	1.65	+0.09
Omega ratio: Gain probability vs. loss probability	1.23	1.21	+0.02
Calmar ratio: Return relative to maximum drawdown	1.94	1.88	+0.07
Martin ratio: Return relative to average drawdown	6.43	6.00	+0.43

SCHE vs. QQQ - Sharpe Ratio Comparison

The current SCHE Sharpe Ratio is 1.22, which is comparable to the QQQ Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of SCHE and QQQ, 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

SCHE vs. QQQ - Drawdown Comparison

The maximum SCHE drawdown since its inception was -36.20%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for SCHE and QQQ.

Drawdown Indicators

	SCHE	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-36.20%	-82.97%	+46.77%
Max Drawdown (1Y) Largest decline over 1 year	-11.29%	-11.96%	+0.67%
Max Drawdown (3Y) Largest decline over 3 years	-17.08%	-22.77%	+5.69%
Max Drawdown (5Y) Largest decline over 5 years	-31.38%	-35.12%	+3.74%
Max Drawdown (10Y) Largest decline over 10 years	-36.20%	-35.12%	-1.08%
Current Drawdown Current decline from peak	-3.13%	-7.69%	+4.56%
Average Drawdown Average peak-to-trough decline	-12.51%	-32.62%	+20.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.40%	3.74%	-0.34%

Volatility

SCHE vs. QQQ - Volatility Comparison

The current volatility for Schwab Emerging Markets Equity ETF (SCHE) is 5.70%, while Invesco QQQ ETF (QQQ) has a volatility of 6.87%. This indicates that SCHE 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.

Volatility by Period

	SCHE	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.70%	6.87%	-1.17%
Volatility (6M) Calculated over the trailing 6-month period	15.60%	16.08%	-0.48%
Volatility (1Y) Calculated over the trailing 1-year period	17.99%	19.38%	-1.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.87%	22.90%	-5.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.44%	22.50%	-3.06%

SCHE vs. QQQ - Expense Ratio Comparison

SCHE has a 0.11% expense ratio, which is lower than QQQ's 0.18% 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%.

Dividends

SCHE vs. QQQ - Dividend Comparison

SCHE's dividend yield for the trailing twelve months is around 2.64%, more than QQQ's 0.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQ Invesco QQQ ETF	0.44%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%
SCHE Schwab Emerging Markets Equity ETF	2.64%	2.88%	3.03%	3.83%	2.88%	2.86%	2.09%	3.27%	2.64%	2.31%	2.27%	2.50%

Frequently Asked Questions

Can I hold both SCHE and QQQ in my portfolio?

SCHE and QQQ have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHE or QQQ?

QQQ has higher volatility (6.87%) compared to SCHE (5.70%). In terms of maximum drawdown, SCHE dropped -36.20% vs QQQ's -82.97%.

Which ETF is better, SCHE or QQQ?

On 10-year performance, QQQ leads with 20.44% vs 7.97% for SCHE. On fees, SCHE is cheaper at 0.11% per year. On volatility, SCHE has been the lower-risk option at 5.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHE or QQQ?

Over the 10-year period, QQQ has performed better with a 20.44% return vs 7.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHE or QQQ?

SCHE is cheaper with a 0.11% expense ratio, compared with 0.18% for QQQ.

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

SCHE has the higher dividend yield at 2.64%, compared with 0.44% for QQQ.

What is the main difference between SCHE and QQQ?

SCHE is categorized as Emerging Markets Equities, while QQQ is Nasdaq-100. SCHE tracks FTSE Emerging Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: Charles Schwab and Invesco. Their fees differ too: 0.11% for SCHE and 0.18% for QQQ.

Which has better risk-adjusted returns?

SCHE currently has the higher Sharpe Ratio (1.22 vs 1.16), 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.