⚖️ SCHG vs QQQ Comparison · Free & No Signup

SCHG vs QQQ: The Cheap Growth ETF vs the Famous Nasdaq Brand

SCHG and QQQ both tilt heavily toward mega-cap US growth names. SCHG charges 0.04%; QQQ charges 0.20%. For a long-term holder, the fee difference matters.

💰 SCHG is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict

🤝 BFF Take

SCHG Wins on Cost — QQQ Has Stronger Brand and Options Liquidity

SCHG (Schwab US Large-Cap Growth ETF) and QQQ (Invesco QQQ Trust) are both large-cap US growth ETFs with significant overlap in top holdings — Apple, Microsoft, Nvidia, and Amazon dominate both. But they are not identical: QQQ specifically tracks the Nasdaq-100 (101 stocks from the Nasdaq exchange, including non-tech names like Amazon, Tesla, and Costco). SCHG tracks the Dow Jones US Large-Cap Growth Total Stock Market Index (~230 stocks, any US large-cap exchange). SCHG charges 0.04%; QQQ charges 0.20% — a 16 basis point gap that on $100K amounts to $160/year more in fees for QQQ. For long-term investors who want US growth exposure without paying for QQQ's brand and options market infrastructure, SCHG is an excellent alternative.

📋 Quick Takeaways

💰SCHG costs 0.04% vs QQQ's 0.20% — 5x cheaper for similar large-cap US growth exposure

📊QQQ tracks Nasdaq-100 (101 stocks); SCHG tracks large-cap US growth broadly (~230 stocks) — different universe

🎯QQQ is the dominant vehicle for growth-focused options trading — the only reason to pay its higher fee

📊 Data-Based Take: SCHG has the lower fee

Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.

✓ Reviewed by a CFA® Charterholder · Data as of Jul 14, 2026 · Educational only, not financial advice

SCHG

Schwab U.S. Large-Cap Growth ETF

Expense Ratio

0.04% ✓

1-Year Return

+17.7%

AUM

$59.1B

Holdings

230

QQQ

Invesco QQQ Trust

Expense Ratio

0.20%

1-Year Return

+30.4%

AUM

$490.1B

Holdings

101

📋 SCHG vs QQQ — Key Facts Side by Side

Metric	SCHG	QQQ
Fund Name	Schwab U.S. Large-Cap Growth ETF	Invesco QQQ Trust
Issuer	Schwab	Invesco
Tracks Index	Dow Jones US Large-Cap Growth	Nasdaq-100
Expense Ratio	0.04% ✓	0.20%
Cost per $10K/yr	$4.00	$20.00
AUM	$59.1B	$490.1B
Holdings	230	101
Inception	2009	1999
1-Year Return	+17.66%	+30.44%
3-Year Return	+23.57%	+26.19%
5-Year Return	+13.55%	+15.60%
Dividend Yield	0.39%	0.41%
Holdings Overlap	See holdings overlap →
Avg Bid-Ask Spread	0.01%	0.00%

Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 SCHG vs QQQ — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...

SCHG

want the lowest fees: saves ~$16/yr per $10K vs QQQ
want broader diversification (230 holdings vs 101)
want tech-heavy large-cap growth exposure via Dow Jones US Large-Cap Growth

Often fits investors who...

QQQ

want tech-heavy large-cap growth exposure via Nasdaq-100
already use Invesco and prefer staying within one fund family

💰 What the Fee Difference Actually Costs

Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.

Investment amount$ Years held Expected annual return%

Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.

⚙️ Want the Full Interactive Comparison?

Side-by-side holdings overlap, sector breakdown, and live performance tabs, all in one place.

Run Full SCHG vs QQQ Comparison → Free · No signup · Instant results

📧 Free Weekly Newsletter

Get smarter about ETFs — one concept a week, free forever

The ETF BFF newsletter breaks down one ETF concept per week — clear, jargon-free, and actually useful.

Free to learn forever · No spam · Unsubscribe anytime

✅ You're in! Check your inbox for your first issue.

❓ SCHG vs QQQ — Frequently Asked Questions

What is the difference between SCHG and QQQ?

SCHG tracks the Dow Jones US Large-Cap Growth index — selecting large US companies classified as growth regardless of which stock exchange they trade on. QQQ tracks the Nasdaq-100 — the 100 largest non-financial companies listed on the Nasdaq exchange. SCHG is broader (~230 stocks); QQQ is more concentrated (101 stocks). Both are dominated by the same mega-cap growth companies, but the selection methodology differs.

Has SCHG or QQQ performed better?

Performance has been very similar over comparable periods, with small differences driven by index composition. In periods when non-Nasdaq growth companies outperformed, SCHG had an edge; when Nasdaq-specific names dominated (often driven by Amazon, Tesla, and Costco), QQQ benefited. SCHG's lower fee gives it a structural advantage that compounds over time.

Should I switch from QQQ to SCHG in my IRA?

In a tax-advantaged account like an IRA, switching from QQQ to SCHG is costless from a tax perspective and saves 16 basis points annually. Over 20 years on a $100K position, that's approximately $3,500 in cumulative fee savings. If you don't need QQQ's options market liquidity, switching to SCHG (or QQQM at 0.15%) makes financial sense.

Does SCHG include all the same stocks as QQQ?

There's significant overlap at the top — both hold Apple, Microsoft, Nvidia, Meta, Alphabet, and Amazon as top positions. However, QQQ exclusively holds Nasdaq-listed companies; SCHG holds growth companies across NYSE and Nasdaq. SCHG includes large-cap growth companies that don't trade on Nasdaq; QQQ includes large Nasdaq-listed non-growth companies (like Costco and Tesla) that might not make SCHG's growth screen.

Is QQQM a better alternative to QQQ than SCHG?

QQQM (Invesco Nasdaq 100 ETF) is the cheaper version of QQQ at 0.15% — if you specifically want the Nasdaq-100 index, QQQM is better than QQQ. SCHG at 0.04% is cheaper still, but tracks a different index. The choice is whether you want specifically the Nasdaq-100 (QQQM) or broader US large-cap growth (SCHG). Both are worth considering over QQQ for long-term investors.

New to ETF investing? See answers to the most common ETF questions →

📄 SCHG & QQQ Fact Sheets

SCHG Fact Sheet→ QQQ Fact Sheet→

ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.