ETF Comparison

QQQ vs SCHD: Which Is the Better Pick in 2026?

A head-to-head comparison of Invesco QQQ Trust and Schwab U.S. Dividend Equity ETF covering yield, cost, risk, and income potential.

Data updated July 4, 2026

Invesco

ETFs255

Total AUM$971B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Invesco is a major player in the ETF space known for offering a broad, diversified lineup of 71 funds spanning multiple investment themes and strategies. Their portfolio spans income-focused funds, factor-based equity strategies, commodity exposure, digital assets, ESG investing, and the popular Invesco QQQ family tracking the Nasdaq-100, serving both income-seeking and growth-oriented investors. The issuer is particularly recognized for specialized offerings like BulletShares (laddered bond funds), sector rotation strategies, and thematic investing options, making it a comprehensive choice for investors seeking varied exposures beyond traditional index funds.

See our curated list of related YouTube videos on QQQ.

See all Invesco ETFs

Schwab

ETFs34

Total AUM$574B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Schwab is known for offering low-cost, broad-based ETFs that serve both core portfolio holdings and specialized investment strategies. Their 33-fund lineup spans multiple asset classes including bonds, equities, international markets, digital assets, and factor-based strategies, with a notable emphasis on dividend-focused funds like SCHD alongside core index options. The issuer emphasizes accessibility for individual investors through competitive expense ratios and a diverse range of fund families designed to support various investment objectives.

See our curated list of related YouTube videos on SCHD.

See all Schwab ETFs

Side-by-side snapshot

	QQQ	SCHD
Full name	Invesco QQQ Trust	Schwab U.S. Dividend Equity ETF
Issuer	Invesco	Schwab
Last Close	$712.60 as of July 4, 2026	$32.39 as of July 4, 2026
Distribution yield	0.45%	3.12%
Distribution Safety Score	95	100
Expense ratio	0.18%	0.06%
AUM	$481B	$95.2B
Distribution frequency	Quarterly	Quarterly
Underlying index	Nasdaq-100 Index	Dow Jones U.S. Dividend 100 Index
Objective	Track the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.	Seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index, which measures the performance of high dividend yielding stocks issued by U.S. companies with a record of consistently paying dividends, selected for fundamental strength relative to their peers based on financial ratios.
Asset class	Equity	Equity
Inception date	03/10/1999	10/20/2011
Beta	1.23	0.59
Last dividend	$0.7941	$0.2525
Ex-dividend date	12/21/2026	06/24/2026

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

QQQ has outpaced SCHD over the trailing twelve months, posting a 30.76% total return against 23.16%. The lead holds up over 10 years too: QQQ has compounded at 21.60% a year, against 12.50% for SCHD. SCHD has been the steadier holding, though — annualized volatility of 13.1% against 20.2% for QQQ. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Oct 2011	Volatility	Sharpe	Sortino	Max drawdown
QQQ	16.37%	30.76%	25.08%	15.64%	21.60%	19.84%	20.2%	0.89	1.27	-22.8%
SCHD	17.79%	23.16%	13.81%	8.69%	12.50%	13.16%	13.1%	0.65	0.94	-16.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2011” measures every fund from October 20, 2011 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

QQQ (Invesco QQQ Trust) and SCHD (Schwab U.S. Dividend Equity ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

SCHD offers the higher yield at 3.12% vs 0.45% for QQQ. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SCHD is cheaper with an expense ratio of 0.06% compared to 0.18%.

They track different benchmarks: QQQ is linked to Nasdaq-100 Index while SCHD tracks Dow Jones U.S. Dividend 100 Index, which means their performance drivers differ.

QQQ is the larger fund by assets ($481B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $3.75/month, while SCHD would produce $26.00/month, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.45%

SCHD yield3.12%

Monthly diff on $10K$22.25

Cost & efficiency

Over 10 years on $10,000, QQQ would cost approximately $180 in fees vs $60 for SCHD (simplified, not compounded). The $120.00 difference may be offset by yield or performance.

QQQ ER0.18%

SCHD ER0.06%

Strategy & risk

QQQ tracks Nasdaq-100 Index with a growth approach, while SCHD tracks Dow Jones U.S. Dividend 100 Index with a basket approach. Beta is 1.23 for QQQ and 0.59 for SCHD, indicating SCHD is less volatile relative to the market.

QQQ beta1.23

SCHD beta0.59

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $481B in assets. SCHD is managed by Schwab (launched 10/20/2011) with $95.2B in assets.

QQQ AUM$481B

SCHD AUM$95.2B

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Frequently asked questions

Is QQQ or SCHD better for dividend income?

It depends on your goals. SCHD currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between QQQ and SCHD?

QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a growth approach, while SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index with a basket approach. They are issued by Invesco and Schwab respectively.

Can I hold both QQQ and SCHD?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, QQQ or SCHD?

QQQ has an expense ratio of 0.18% while SCHD charges 0.06%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in QQQ vs SCHD generate?

At current rates, $10,000 in QQQ would generate roughly $3.75 per month ($45.00 annually). The same in SCHD would produce about $26.00 per month ($312.00 annually).

Which has performed better historically, QQQ or SCHD?

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QQQ vs SCHD — at a glance

Generated June 2026 from current fund data.

Overview

QQQ tracks the Nasdaq-100, giving you the 100 largest non-financial stocks trading on the Nasdaq—dominated by technology, consumer discretionary, and healthcare. SCHD tracks the Dow Jones U.S. Dividend 100, a basket of large-cap U.S. stocks specifically selected for high and consistent dividend yields plus financial strength. The core difference: QQQ is growth-oriented with minimal income; SCHD is income-focused and screens for dividend reliability and balance-sheet quality.

How they differ

QQQ's strategy is pure index tracking—no fundamental screening. It holds mega-cap growth stocks (Apple, Microsoft, Nvidia, Tesla) and pays almost no income: 0.44% distribution rate. SCHD actively applies a dividend-yield screen plus financial quality filters, generating 3.16% in distributions—seven times higher. QQQ carries a beta of 1.23, meaning it swings harder than the broader market; SCHD's beta of 0.59 shows it's significantly less volatile. On cost, SCHD edges out QQQ (0.06% versus 0.18% expense ratio), though both are already cheap. SCHD's $95.2B AUM is substantial but a fifth of QQQ's $481B, reflecting the outsized popularity of growth-tech exposure versus dividend strategies over the past decade.

Who each is best for

QQQ: Fits investors seeking exposure to large-cap technology and growth at market-weighted scale, with a long time horizon and tolerance for year-to-year NAV swings tied to growth-stock momentum.

SCHD: Designed for income-oriented portfolios where current cash distributions matter, or for investors who value lower volatility and prefer owning financially stable, dividend-paying companies over pure growth momentum.

Key risks to know

Sector concentration in QQQ. The Nasdaq-100 is heavily weighted toward tech, consumer discretionary, and communication services. A rotation away from growth stocks or a tech sector correction can trigger sharp NAV declines unrelated to broad market moves.

Dividend-yield sustainability in SCHD. The 3.16% distribution is only as reliable as the underlying companies' commitment to maintain payouts. Economic downturns or margin pressure can force dividend cuts, even among historically stable payers. The fund's selection criteria don't prevent every cut.

Beta and volatility mismatch. QQQ's 1.23 beta means drawdowns often exceed the S&P 500 by 20–30%; investors underestimating this can panic-sell during corrections. Conversely, SCHD's 0.59 beta, while protective, means it will lag meaningfully if growth stocks accelerate.

Valuation sensitivity. QQQ's holdings trade at elevated price-to-earnings multiples. Rising interest rates or a shift to value investing can depress valuations independent of earnings growth.

Bottom line

If you're building for long-term capital appreciation and can stomach volatility, QQQ's ultra-low cost and mega-cap growth exposure appeal; if you need steady income and prefer lower drawdowns, SCHD's 3.16% yield and 0.59 beta make it the income anchor. The tradeoff is direct: growth-and-volatility versus income-and-stability. Past performance in either direction doesn't predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.