QQQ vs SWTSX
Invesco QQQ Trust, Series 1 vs Schwab Total Stock Market Index Fund
Which is better, QQQ or SWTSX?
Large Cap Growth against Large Cap Blend.
SWTSX has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. SWTSX is less concentrated, with 33.5% of the fund in its ten largest positions against 47.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | SWTSX |
|---|---|---|
| Expense Ratio | 0.18% | 0.03%Best |
| AUM | $498.6B | $45.1B |
| Dividend Yield | 0.42% | 0.97% |
| Holdings | 321 | 2,987 |
| YTD Price Return | +21.28%Best | +14.42% |
| 1Y Price Return | +23.51%Best | +16.69% |
| 3Y Price Return (annualized) | +26.34%Best | -36.53% |
| 5Y Price Return (annualized) | +15.61%Best | -24.98% |
| Volatility (annualized) | 20.7%Best | 41.5% |
| Max Drawdown | -35.6%Best | -86.0% |
| $10,000 over 5 years | $20,653Best | $2,376 |
| Top 10 Weight | 47.2% | 33.5%Best |
| Fund Family | Invesco (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | Jun 1, 1999 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for SWTSX. Both funds are measured the same way, so the comparison holds. QQQ yields 0.42% and SWTSX 0.97% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 14, 2021 to Oct 12, 2026 (5 years).
QQQ vs SWTSX growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
QQQ vs SWTSX Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Schwab Total Stock Market Index Fund (SWTSX) is a mutual fund from Charles Schwab Asset Management. Over the past year QQQ returned +23.51% while SWTSX returned +16.69%. Year to date, QQQ is up 21.28% versus a gain of 14.42% for SWTSX.
Over three years, QQQ compounded at +26.34% per year against -36.53% for SWTSX; over five years the annualized figures are +15.61% and -24.98% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SWTSX has been the more volatile fund, with annualized monthly volatility of 41.5% compared with 20.7% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -35.6% for QQQ and -86.0% for SWTSX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.34. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while SWTSX charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 0.97% for SWTSX.
Structure and taxes
SWTSX is a mutual fund and QQQ is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
96.6% of QQQ's money is in holdings SWTSX also owns. 48.2% of SWTSX's money is in holdings QQQ also owns.
Most of QQQ is already inside SWTSX. Owning both mostly buys the same companies twice.
93 positions in common, counted across the 102 positions we hold weights for in QQQ and 2,868 in SWTSX, against full books of 321 and 2,987.
What only one of them owns
Our book lists 1,041 positions for SWTSX that do not appear in our book for QQQ (48.6% of the fund), and 3 for QQQ that do not appear in SWTSX (1.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in SWTSX | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.45% | 7.16% | 1.29% |
| AAPLApple, Inc | 7.80% | 6.23% | 1.57% |
| MSFTMicrosoft Corp | 5.88% | 5.05% | 0.83% |
| AMZNAmazon.Com Inc | 4.41% | 3.40% | 1.01% |
| MUMicron Technology, Inc. | 4.85% | 1.45% | 3.40% |
| GOOGLAlphabet Inc,class A | 3.15% | 2.66% | 0.49% |
| AVGOBroadcom Inc | 2.74% | 2.35% | 0.39% |
| GOOGAlphabet Inc. C | 2.93% | 2.12% | 0.81% |
| METAMeta Platforms Inc | 3.07% | 1.68% | 1.39% |
| AMDAdvanced Micro Devices Inc | 3.71% | 1.03% | 2.68% |
96.6% of QQQ is already inside SWTSX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or SWTSX?
QQQ has an expense ratio of 0.18% while SWTSX charges 0.03%. SWTSX is the cheaper option, by $15 a year on a $10,000 investment.
Which performed better, QQQ or SWTSX?
Over the past year QQQ returned +23.51% vs +16.69% for SWTSX, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or SWTSX?
SWTSX has been the more volatile fund at 41.5% annualized versus 20.7% for QQQ. Worst drawdown: QQQ -35.6% vs SWTSX -86.0%.
Should I hold both QQQ and SWTSX?
QQQ and SWTSX have a monthly-return correlation of 0.34, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and SWTSX?
96.6% of QQQ's money is in holdings SWTSX also owns. 48.2% of SWTSX's is in holdings QQQ also owns. They hold 93 positions in common, counted across the 102 positions we hold weights for in QQQ and 2,868 in SWTSX.
Which pays a higher dividend, QQQ or SWTSX?
QQQ yields 0.42% while SWTSX yields 0.97%, so SWTSX currently pays the higher dividend yield.
Is it better to hold SWTSX or QQQ in a taxable account?
QQQ is an ETF and SWTSX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is SWTSX better than QQQ?
SWTSX has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. SWTSX is less concentrated, with 33.5% of the fund in its ten largest positions against 47.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.