QQQ vs SCHD: Head-to-Head Comparison
QQQ vs SCHD: Invesco QQQ Trust has an expense ratio of 0.20% while Schwab U.S. Dividend Equity ETF charges 0.06%. QQQ holds 101 securities vs SCHD's 103. 5-year returns: 19.50% vs 12.10%.
Last updated: April 2026
Growth vs Dividend
Quick Verdict
SCHD edges out QQQ with a stronger Beginner Suitability Score (9 vs 8.5). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | QQQ | SCHD |
|---|---|---|
| Expense Ratio | 0.20% | 0.06% |
| AUM | $310.0B | $62.0B |
| Dividend Yield | 0.60% | 3.40% |
| Holdings | 101 | 103 |
| 1-Year Return | 29.80% | 12.90% |
| 5-Year Return (Ann.) | 19.50% | 12.10% |
| 10-Year Return (Ann.) | 18.50% | 11.50% |
| Beta | 1.15 | 0.82 |
| P/E Ratio | 33.2 | 16.8 |
QQQ 5-year annualized return is 19.50% compared to SCHD's 12.10%. Over 10 years, QQQ returned 18.50% vs SCHD's 11.50%.
View data table
| Period | QQQ Return | SCHD Return |
|---|---|---|
| YTD | 3.50% | 1.80% |
| 1 Year | 29.80% | 12.90% |
| 3 Year | 13.20% | 7.20% |
| 5 Year | 19.50% | 12.10% |
| 10 Year | 18.50% | 11.50% |
Key Differences Between QQQ and SCHD
QQQ (Invesco QQQ Trust) is a u.s. large-cap growth fund managed by Invesco. QQQ tracks the Nasdaq-100 index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It is heavily tilted toward technology and growth stocks, making it a favorite for investors who want concentrated exposure to the tech sector. Beginners should understand that QQQ can deliver higher returns than the S&P 500 in good years but also experiences sharper declines during downturns.
SCHD (Schwab U.S. Dividend Equity ETF) is a u.s. large-cap dividend fund managed by Charles Schwab. SCHD focuses on high-quality U.S. companies with strong track records of paying and growing dividends. It uses a rules-based approach to select about 100 stocks that have consistently paid dividends for at least 10 years. Beginners who want both income and growth often find SCHD attractive because it combines a solid dividend yield with quality stock selection at a very low cost.
The most notable differences are in fees (0.20% vs 0.06%), number of holdings (101 vs 103), and 5-year returns (19.50% vs 12.10%).
QQQ vs SCHD multi-factor comparison: QQQ has a 0.20% expense ratio, 19.50% 5-year return, 101 holdings, 1.15 beta, and 0.60% yield. SCHD has 0.06% expense ratio, 12.10% 5-year return, 103 holdings, 0.82 beta, and 3.40% yield.
View data table
| Metric | QQQ | SCHD |
|---|---|---|
| Expense Ratio | 0.20% | 0.06% |
| 5-Year Return | 19.50% | 12.10% |
| Holdings | 101 | 103 |
| Beta | 1.15 | 0.82 |
| Dividend Yield | 0.60% | 3.40% |
Want the full framework? This 2-hour ETF course teaches you exactly how to pick, buy, and hold profitable ETFs — from zero to confident investor. Under $15.
Ready to invest? Open an IBKR account in 10 minutes and get free stock. $0 commissions on US ETFs • Fractional shares from $1 • 150+ global markets.
Holdings Overlap Analysis
0%
Holdings Overlap
QQQ and SCHD share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
QQQ and SCHD share 0% of their top holdings (low overlap). QQQ has 101 total holdings and SCHD has 103.
View data table
| Metric | QQQ | SCHD |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 101 | 103 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
QQQ
Fee cost: $1,696
SCHD
Fee cost: $515
Over 20 years, the fee difference amounts to $1,181 on a $10,000 investment. SCHD saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, QQQ (0.20% fee) grows to $44,913 while SCHD (0.06% fee) grows to $46,094. The fee difference costs $1,181.
View data table
| Year | QQQ Value | SCHD Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,558 | $14,653 |
| 10 | $21,193 | $21,470 |
| 15 | $30,852 | $31,458 |
| 20 | $44,913 | $46,094 |
Which One Should a Beginner Choose?
Choose QQQ if: You want growth-oriented investors with a long time horizon and higher risk tolerance, investors who want concentrated exposure to technology and innovation leaders, younger investors who can tolerate short-term volatility for potentially higher long-term returns. It's managed by Invesco with an expense ratio of 0.20%.
Choose SCHD if: You want income-focused investors who want a reliable and growing dividend stream, conservative investors who prefer lower volatility with quality companies, retirees or pre-retirees building a dividend income portfolio. It's managed by Charles Schwab with an expense ratio of 0.06%.
Can You Own Both QQQ and SCHD?
Absolutely! With only 0% overlap, QQQ and SCHD complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy QQQ or SCHD?▾
SCHD edges out QQQ with a stronger Beginner Suitability Score (9 vs 8.5). It offers lower fees for new investors. However, both are solid options. QQQ is best for investors who want growth-oriented investors with a long time horizon and higher risk tolerance, while SCHD is better suited for income-focused investors who want a reliable and growing dividend stream.
What is the difference between QQQ and SCHD?▾
QQQ (Invesco QQQ Trust) tracks u.s. large-cap growth investments with 101 holdings and a 0.20% expense ratio. SCHD (Schwab U.S. Dividend Equity ETF) focuses on u.s. large-cap dividend with 103 holdings at 0.06%. Their top holdings overlap by 0%.
Can I own both QQQ and SCHD?▾
Yes! With only 0% holdings overlap, QQQ and SCHD complement each other well. Owning both gives you broader diversification.