Dividend comparison
QQQ vs SCHD: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Invesco QQQ Trust, Series 1 and Schwab U.S. Dividend Equity ETF, side by side. Updated October 21, 2026.
- Fees. SCHD is cheaper at 0.06% a year versus 0.18% for QQQ. On $10,000 that is $12 a year less in fees.
- Income. SCHD pays more income, yielding 3.04% over the last twelve months versus 0.53% for QQQ. That is about $251 more a year on $10,000. QQQ pays annual, SCHD pays quarterly.
- Performance. Over the last 5 years, QQQ returned 97.0% versus 57.9% for SCHD, with dividends reinvested. $10,000 would have grown to $19,698 in QQQ and $15,790 in SCHD.
- Risk. QQQ has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -35.1%, against -16.8% for SCHD.
- Diversification. QQQ holds 102 positions and SCHD holds 102. The ten largest positions make up 47.2% of QQQ and 41.7% of SCHD.
- Overlap. 5% of the two portfolios overlap by weight, across 8 shared holdings. They mostly own different companies, so they can complement each other.
- Dividend growth. QQQ grew its yearly payout 13.3% a year over the last 4 years, versus 8.7% for SCHD.
- Size. QQQ is the larger fund with $487.5 billion in assets, against $114.7 billion for SCHD.
Bottom line: QQQ fits better if you care most about stronger 5-year returns and faster dividend growth. SCHD fits better if you care most about lower fees, more income today and smaller drawdowns.
| Metric | QQQ Invesco QQQ Trust, Series 1 | SCHD Schwab U.S. Dividend Equity ETF |
|---|---|---|
| Dividend yield (TTM) | 0.53% | 3.04% |
| Dividend / share (TTM) | $3.79 | $1.05 |
| Payout frequency | Annual | Quarterly |
| Last dividend | $0.7514 on Oct 8, 2026 | $0.2665 on Sep 28, 2026 |
| Ex-dividend date | Dec 21, 2026 | Sep 23, 2026 |
| Next payment | $0.7941 on Dec 28, 2026 | — |
| Dividend growth (CAGR) | 13.3% over 4 yrs | 8.7% over 4 yrs |
| Price | $717.63 | $34.69 |
| Dividend growth streak | — | 13 years |
| Beta | 1.23 | 0.58 |
| Max drawdown (5Y) | -35.1% | -16.8% |
| Market cap | $479.05B | $98.31B |
| Exchange | NASDAQ | AMEX |
| Expense ratio | 0.18% | 0.06% |
| Assets under management | $487.46B | $114.71B |
| Number of holdings | 102 | 102 |
| Top 10 concentration | 47.2% | 41.7% |
QQQ
$4.40/mo
$53 /yr at 0.53% yield
SCHD
$25.32/mo
$304 /yr at 3.04% yield
| Year | QQQ | SCHD |
|---|---|---|
| 2025 | $2.7949 | $1.0476 |
| 2024 | $3.0623 | $0.9944 |
| 2023 | $2.3200 | $0.8862 |
| 2022 | $2.1351 | $0.8540 |
| 2021 | $1.6968 | $0.7499 |
Current income is low and outside your control, so these need pairing with something else if the portfolio has to produce cash today.
What QQQ vs SCHD actually do
The index is modified market-cap weighted and excludes financials by rule, which is why it lands so heavily in technology, communication services and consumer discretionary names. In December 2025 the fund converted from a unit investment trust to a conventional open-end fund and cut its fee, so it can now reinvest income and lend securities like its peers. It remains the most liquid Nasdaq-100 vehicle by a wide margin and the reference asset for a large share of the options-income products in this category.
Suits investors who want concentrated large-cap growth exposure and anyone who needs deep options liquidity. Dividends are incidental, so it does not answer an income mandate on its own.
Growth-tilted core, concentrated
It tracks the Dow Jones U.S. Dividend 100 Index, which first requires at least ten consecutive years of dividends, then ranks the survivors on a composite of cash flow to total debt, return on equity, dividend yield and five-year dividend growth. The top 100 are held at market-cap weights with a 4% cap per stock and 25% per sector, reconstituted annually and rebalanced quarterly. Those quality screens push the portfolio toward mature value sectors and largely out of high-growth technology, which is the single biggest reason its return diverges from the S&P 500 in either direction.
Suits an investor who wants a growing dividend stream plus share-price participation and can sit out technology-led rallies without changing course. Not a match for someone who needs the highest available current yield or wants full market exposure.
Core dividend holding
| Period | QQQ | SCHD |
|---|---|---|
| 1 month | -0.43% | 3.83% |
| 3 months | 3.10% | 6.77% |
| Year to date | 17.09% | 29.59% |
| 1 year | 17.78% | 33.01% |
| 3 years | 105.61% | 66.22% |
| 5 years | 96.98% | 57.90% |
- QQQ
- SCHD
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
- QQQ
- SCHD
QQQ102 holdings total
Quick verdict
QQQ fits better if you care most about stronger 5-year returns and faster dividend growth. SCHD fits better if you care most about lower fees, more income today and smaller drawdowns. Model the holding inside your real portfolio before deciding.
Frequently asked questions
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How much do QQQ and SCHD overlap?
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.