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ETF Comparison

QQQ vs SCHD: Growth Engine or Dividend Income?

QQQ holds the Nasdaq-100's tech leaders with a sub-1% yield; SCHD screens for quality dividend payers yielding ~3.4%. Compare returns, yield, and the role each plays.

Data as of September 28, 2026

QQQ

Invesco QQQ Trust

Invesco

Broad Market

Price

$663.88

Yield (TTM)

0.58%

QQQ dividend calculator →

SCHD

Schwab U.S. Dividend Equity ETF

Charles Schwab

Dividend Growth

Price

$31.20

Yield (TTM)

3.44%

SCHD dividend calculator →

Run these ETFs through the calculator

Project compounded returns, dividend income, and reinvestment using each ETF's real yield, expense ratio, and distribution frequency.

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Quick Comparison Summary

QQQ vs SCHD: compare dividend yield (0.58% vs 3.4%), expense ratio (0.18% vs 0.06%), holdings, returns, and our verdict for dividend investors.

Side-by-Side Metrics
MetricQQQSCHD
IssuerInvescoCharles Schwab
Inception1999-03-102011-10-20
CategoryBroad MarketDividend Growth
Price$663.88$31.20
NAV$663.88$31.19
Dividend Yield (TTM)0.58%3.44%
Expense Ratio0.18%0.06%
Distribution FrequencyQuarterlyQuarterly
AUM$427.0B$88.3B
Total Returns

3Y and 5Y figures are annualized. A 0% value indicates the fund had not been listed for the full period.

Holdings & Sector Exposure

QQQ

Top 5 / 5 shown

  • MSFT

    Microsoft

    8.95%

  • AAPL

    Apple

    8.42%

  • NVDA

    NVIDIA

    7.84%

  • AMZN

    Amazon

    5.18%

  • META

    Meta Platforms

    4.62%

Sector Weights

  • Information Tech51.2%
  • Communication16.1%
  • Consumer Disc.13.4%
  • Health Care6.8%
  • Consumer Staples4.2%
  • Industrials4.1%

SCHD

Top 5 / 5 shown

  • TXN

    Texas Instruments

    4.31%

  • AMGN

    Amgen

    4.18%

  • CSCO

    Cisco Systems

    4.05%

  • VZ

    Verizon

    3.97%

  • HD

    Home Depot

    3.85%

Sector Weights

  • Financials18.4%
  • Health Care16.9%
  • Consumer Staples14.7%
  • Industrials13.5%
  • Information Tech11.2%
  • Energy8.6%

Pros & Cons

QQQPros
  • Highest 5-year annualized return among the pair (~18%)
  • Exposure to the dominant mega-cap tech franchise
  • Very high liquidity and tight spreads
  • Low yield makes it tax-efficient in taxable accounts
SCHDPros
  • Yield around 3.4% — roughly 6x QQQ
  • 0.06% expense ratio, one of the cheapest in the category
  • Quality screens (ROE, cash flow, payout history) reduce yield-trap risk
  • Defensive tilt historically softens bear markets
QQQCons
  • Yield under 1% — no meaningful income
  • About half the fund sits in information technology
  • No dividend-quality screening whatsoever
  • Drawdowns are sharper in tech-led selloffs
SCHDCons
  • Significantly lower historical total return than QQQ
  • Sector concentration in financials, staples, and energy
  • Misses most mega-cap tech upside
  • Income is delivered quarterly, not monthly
The Verdict

QQQ and SCHD solve opposite problems. QQQ has delivered roughly 18% annualized over the past five years on the back of mega-cap tech, but yields under 1% — it is a growth allocation, not an income source. SCHD yields about six times more, charges a third of the fee, and its quality screens have produced steadier drawdowns, at the cost of missing the biggest tech rallies. Most investors hold both: QQQ (or a broad growth fund) for compounding, SCHD for the income sleeve.

Best for
QQQ

Investors prioritizing long-term total return who accept tech concentration and minimal income

Best for
SCHD

Income-focused investors who want a quality-screened dividend portfolio with meaningful yield

Strategy Summary

QQQ

Tracks the Nasdaq-100 Index — 100 largest non-financial companies on Nasdaq. Tech-heavy benchmark widely used for growth-oriented exposure.

SCHD

Tracks the Dow Jones U.S. Dividend 100 Index — large-cap U.S. companies with at least 10 consecutive years of dividend payments, screened on cash-flow-to-debt, ROE, dividend yield, and 5-year dividend growth.

Frequently Asked Questions

SCHD. QQQ's yield is under 1%, which does not meaningfully contribute to an income goal. QQQ belongs in the growth portion of a portfolio; SCHD belongs in the income portion.

Yes — it is a common pairing. QQQ provides total-return growth while SCHD provides dividend income and a value tilt. The right split depends on your horizon and how much of your spending you want covered by dividends.

Historically SCHD has fallen less in broad selloffs because its holdings are value-oriented and dividend-screened, while QQQ is concentrated in higher-volatility growth names. That cushion is not guaranteed in every downturn.
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01

Broad Market vs Broad Market

QQQ vs QQQM

Both Invesco ETFs track the Nasdaq-100. QQQ charges 0.18%; QQQM charges 0.15%. Compare structure, liquidity, and when each makes sense.

Yield 0.6% vs 0.5%Fee 0.18% vs 0.15%
02

Dividend Growth vs Dividend Growth

SCHD vs DGRO

Schwab's SCHD vs BlackRock's DGRO — two of the most popular dividend-growth ETFs. SCHD has higher yield, DGRO has more tech exposure. Compare expense, holdings, sector mix, and growth rates.

Yield 3.4% vs 2.1%Fee 0.06% vs 0.08%
03

Dividend Growth vs Dividend Growth

SCHD vs VIG

Schwab's SCHD focuses on quality + yield; Vanguard's VIG focuses on dividend appreciation with a 10-year growth screen. Compare yield, returns, and approach.

Yield 3.4% vs 1.7%Fee 0.06% vs 0.04%
04

Dividend Growth vs Broad Market

SCHD vs VOO

SCHD focuses on quality dividend payers; VOO holds the entire S&P 500. Compare yield, expense, returns, and the growth-vs-income tradeoff.

Yield 3.4% vs 1.2%Fee 0.06% vs 0.03%
05

Broad Market vs Broad Market

VOO vs QQQ

VOO delivers broad S&P 500 exposure at a 0.03% fee with a modest 1.16% yield. QQQ concentrates on the Nasdaq-100's tech-heavy growth names. Compare fees, returns, yield, and overlap to decide which belongs in your portfolio.

Yield 1.2% vs 0.6%Fee 0.03% vs 0.18%
06

Broad Market vs Dividend Growth

VTI vs SCHD

VTI owns nearly the entire U.S. stock market at a 0.03% fee. SCHD holds 100 quality dividend payers with a 3.44% yield for a similar cost. Compare income, diversification, returns, and how each fits a long-term plan.

Yield 1.2% vs 3.4%Fee 0.03% vs 0.06%

Fund metrics as of April 27, 2026.

Disclaimer: This page is for educational purposes only and is not financial, investment, or tax advice. ETF data is sourced from issuer fact sheets and may be slightly out of date. Past performance is not indicative of future results. Always consult a qualified advisor before making investment decisions.