SCHG vs QQQ ETF Comparison: AI Score, Valuation, Performance and Upside
SCHG and QQQ are both large-cap US growth ETFs with heavily overlapping top holdings (Apple, Microsoft, Nvidia, Amazon). The key differences are expense ratio (SCHG 0.04% vs QQQ 0.20%), liquidity and options market (QQQ dominates), and index methodology (CRSP/Dow Jones growth vs NASDAQ-100). For long-term buy-and-hold investors, SCHG's cost advantage compounds significantly. For options strategies or institutional liquidity, QQQ remains essential.
SCHG vs QQQ — SCHG provides large-cap US growth factor exposure at 0.04% expense ratio with broader ~250-stock diversification (Schwab Growth) versus the NASDAQ-100 ETF at 0.20% expense ratio with the world's most liquid equity ETF options market and institutional benchmark recognition (QQQ) — lowest-cost growth factor vs maximum options liquidity growth benchmark.
QQQ holds the edge across 3 of 5 key metrics in this comparison. QQQ has delivered stronger 1-year price return (+40.68% vs +21.75% for SCHG).
- →prefer the lowest-cost large-cap US growth ETF at 0.04% expense ratio — maximizing long-term compounding without paying for options liquidity they don't need
- →value slightly broader diversification of ~250 stocks vs QQQ's 100-stock NASDAQ-100 concentration
- →want large-cap growth exposure with the same mega-cap tech holdings as QQQ (Apple, Nvidia, Microsoft, Amazon) at a fraction of the cost
- →are comfortable with lower AUM and daily trading volume vs QQQ, and minimal options market for SCHG
- →need the world's most liquid equity ETF options market for covered call income generation, protective put hedging, or complex options strategies on growth ETF exposure
- →make large institutional trades where QQQ's minimal bid-ask spread vs thinner alternatives saves more than the 0.16% expense ratio difference
- →want the recognized global NASDAQ-100 benchmark for performance attribution and growth equity measurement
- →are comfortable with the 0.20% expense ratio understanding they are paying for options market depth and institutional liquidity rather than pure index exposure
| Metric | SCHG | QQQ |
|---|---|---|
| ETF score | 80.0 | 84.0 |
| Latest close | $33.90 | $740.62 |
| 1M return | +0.03% | +5.57% |
| 6M return | +6.73% | +23.67% |
| 1Y return | +21.75% | +40.68% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | SCHG | QQQ |
|---|---|---|
| 1Y ago | $12.22K (+22.2%) started 2025-06-18 | $14.14K (+41.4%) started 2025-06-18 |
| 5Y ago | $20.09K (+100.9%) started 2021-06-18 | $22.96K (+129.6%) started 2021-06-18 |
| 10Y ago | $59.55K (+495.5%) started 2016-06-20 | $79.38K (+693.8%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | SCHG | QQQ |
|---|---|---|
| Expense ratio | 0.04% | 0.18% |
| Total assets (AUM) | $61.08B | $493.99B |
| Dividend yield | 0.36% | 0.38% |
| Trailing P/E | 31.88 | 34.00 |
| Beta | 1.20 | 1.23 |
| 52-week change | 21.75% | 40.68% |
| Metric | SCHG | QQQ |
|---|---|---|
| 1Y return | +21.75% | +40.68% |
| 6M return | +6.73% | +23.67% |
| 1M return | +0.03% | +5.57% |
| 1Y Sharpe ratio | 1.03 | 1.78 |
| Beta | 1.20 | 1.23 |
| Dividend yield | 0.36% | 0.38% |
| 5Y CAGR | +14.43% | +17.37% |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | SCHG | QQQ |
|---|---|---|---|
| 1Y | Growth | +21.75% | +40.68% |
| CAGR | +21.76% | +40.72% | |
| Sharpe ratio | 1.03 | 1.78 | |
| Max drawdown | 16.41% | 11.96% | |
| Max daily drop | 3.35% | 4.80% | |
| Max wkly drop | 5.52% | 6.79% | |
| 5Y | Growth | +96.17% | +122.74% |
| CAGR | +14.43% | +17.37% | |
| Sharpe ratio | 0.52 | 0.63 | |
| Max drawdown | 34.59% | 35.12% | |
| Max daily drop | 6.11% | 6.21% | |
| Max wkly drop | 12.33% | 11.98% | |
| 10Y | Growth | +453.19% | +639.84% |
| CAGR | +18.67% | +22.17% | |
| Sharpe ratio | 0.69 | 0.81 | |
| Max drawdown | 34.59% | 35.12% | |
| Max daily drop | 12.55% | 11.98% | |
| Max wkly drop | 17.06% | 16.20% |
| Category | SCHG | QQQ |
|---|---|---|
| Fund name | Schwab U.S. Large-Cap Growth ETF | Invesco QQQ Trust |
| Type | ETF | ETF |
| Expense ratio | 0.04% | 0.18% |
| Total assets (AUM) | $61.08B | $493.99B |
| Dividend yield | 0.36% | 0.38% |
- →0.04% expense ratio: SCHG is the cheapest growth-factor ETF available — matching VUG and significantly cheaper than QQQ (0.20%)
- →Includes Alphabet, Meta, Amazon, Tesla: SCHG's growth index includes communication services and consumer discretionary mega-caps excluded from pure GICS technology ETFs like VGT
- →Broad large-cap growth with ~250 stocks: more diversified than QQQ's 100-stock concentration
- →Institutional-grade liquidity: QQQ's $15B+ daily volume makes it the most traded US ETF — minimal bid-ask spread for large institutional trades
- →World's most liquid equity ETF options market: QQQ's options depth enables covered calls, protective puts, and complex strategies unavailable in SCHG
- →NASDAQ-100 benchmark recognition: QQQ is the recognized benchmark for technology and growth fund performance globally
- →Less liquid than QQQ: SCHG has lower AUM and trading volume than QQQ — bid-ask spreads slightly wider for large trades
- →Index reconstitution timing: Dow Jones growth indices reconstitute less frequently than CRSP indices — potentially slower factor rebalancing
- →No options market liquidity: SCHG lacks the robust options market that QQQ offers for covered call and hedging strategies
- →0.20% expense ratio is 5x SCHG's 0.04%: over 30 years, QQQ's additional expense is significant for long-term buy-and-hold investors
- →Most investors should use QQQM instead: Invesco's cheaper QQQM provides identical exposure at 0.15% — even QQQ buyers should consider QQQM unless needing maximum institutional liquidity
- →100-stock concentration creates more volatile performance than SCHG's ~250-stock portfolio
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