Wealthy PotQQQM vs SCHD: The Low-Cost Nasdaq-100 Against Schwab's Dividend Fund
QQQM and SCHD overlap by 5.2%, by our calculation from both funds' SEC holdings filings for 31 May 2026. They share eight stocks and nothing else. QQQM is Invesco's lower-cost Nasdaq-100 fund: half technology, built for buy-and-hold investors, with a 0.15% fee. SCHD is 100 dividend payers at 0.06%. QQQM has the stronger record (16.52% a year over the five years to 30 June 2026, against SCHD's 8.51%), and SCHD pays the income (a 3.37% SEC yield against 0.42%). Since they hold different companies, the real question is often how much of each to own.
Table of Contents
The Short Answer
- Overlap: 5.2%. 5.2% of QQQM sits in stocks SCHD owns; 26.1% of SCHD sits in stocks QQQM owns. Both filings are for 31 May 2026.
- Fees: SCHD 0.06%, QQQM 0.15%. $6 against $15 a year per $10,000. QQQM is 0.03 points cheaper than QQQ for the same index.
- Income: SCHD 3.37%, QQQM 0.42% 30-day SEC yield, both as of 1 October 2026.
- Returns: QQQM ahead over one, three and five years to 30 June 2026 at NAV: 34.17%, 26.66% and 16.52% a year, against SCHD's 24.08%, 13.52% and 8.51%. QQQM launched in October 2020, so it has no ten-year record of its own.
- Taxes: SCHD gives up more. Over five years, tax on distributions took 0.97 points a year off SCHD's return and 0.17 off QQQM's.
- QQQ or QQQM? Same holdings, same index. QQQM is the cheaper one to hold; QQQ is the one traders use. More below.
How Little QQQM and SCHD Overlap
Both N-PORT filings are for 31 May 2026, so this is a same-day comparison, computed with the same data as our Portfolio Overlap Checker.
| Shared stock | Weight in QQQM | Weight in SCHD |
|---|---|---|
| Texas Instruments | 1.21% | 5.90% |
| Qualcomm | 1.17% | 6.74% |
| PepsiCo | 0.86% | 3.44% |
| Amgen | 0.79% | 3.47% |
| Automatic Data Processing | 0.39% | 2.25% |
| Comcast | 0.39% | 2.25% |
| Fastenal | 0.22% | 1.28% |
| Paychex | 0.15% | 0.79% |
| Total | 5.2% | 26.1% |
QQQM's ten largest companies on that date (Nvidia 8.13%, Apple 7.26%, Alphabet 6.75%, Microsoft 5.30%, Micron 4.78%, Amazon 4.60%, AMD 3.68%, Tesla 3.45%, Broadcom 3.36% and Meta 2.96%, together 50.27%) are all absent from SCHD. SCHD's largest non-shared names, UnitedHealth, Coca-Cola, Merck, Chevron, Verizon and Procter & Gamble, are all absent from QQQM.
The sector split shows the same thing. QQQM's shareholder report for 28 February 2026 puts it at 49.9% information technology, 15.6% communication services and 12.5% consumer discretionary. SCHD was 9.23% information technology on 30 June 2026, with health care (20.72%), consumer staples (20.38%) and energy (14.07%) as its largest sectors. The two funds cover different parts of the US market.
QQQM vs SCHD Side by Side
| QQQM | SCHD | |
|---|---|---|
| Full name | Invesco NASDAQ 100 ETF | Schwab U.S. Dividend Equity ETF |
| Index | Nasdaq-100 Index | Dow Jones U.S. Dividend 100 Index |
| Expense ratio | 0.15% | 0.06% |
| Prospectus cost of $10,000 over 10 years | $192 | $77 |
| Holdings | 103 (2 Oct 2026) | 102 lines (2 Oct 2026) |
| Top 10 weight | 50.27% (31 May 2026, SEC filing) | 41.62% (2 Oct 2026) |
| 30-day SEC yield | 0.42% (1 Oct 2026) | 3.37% (1 Oct 2026) |
| Portfolio turnover, latest fiscal year | 6% | 30% |
| Net assets | $111.67 billion (2 Oct 2026) | $108.67 billion (2 Oct 2026) |
| Inception | 13 October 2020 | 20 October 2011 |
The two funds are now about the same size, a little over $100 billion each. The rules behind them could hardly differ more. The Nasdaq-100 takes "100 of the largest domestic and international non-financial companies" on Nasdaq, weighted by modified market value, with no dividend test. SCHD's index requires "at least 10 consecutive years of dividend payments" and ranks the higher yielders on four measures, then caps each stock at 4.0% at each rebalance. Since 1 May 2026 the Nasdaq-100 can also add a large new listing early if it ranks in the index's top 40 by market value, under a "fast entry" rule described in Invesco's April 2026 supplement.
Why QQQM and Not QQQ
Most people comparing QQQM with SCHD have already decided they want the Nasdaq-100 and are picking a wrapper. QQQ and QQQM hold the same index. Our overlap calculation puts them at 92.1% across a one-month gap in their filings (QQQ for 30 June, QQQM for 31 May), and the stocks in one but not the other are a handful of index additions and removals in that month. The differences that matter:
- Fee. QQQM charges 0.15% and QQQ 0.18%. On $10,000 the prospectus ten-year cost examples are $192 and $230.
- Share price. QQQM's net asset value per share was $250.13 on 28 February 2026; QQQ's was $577.44 on 31 March 2026, according to each fund's semi-annual report. At less than half the price per share, QQQM is easier to buy in whole shares with small monthly amounts. If your broker sells fractional shares, this matters less.
- Who uses QQQ. QQQ is one of the most heavily traded ETFs, with a deep options market. Traders pay the extra 0.03 points for that. A buy-and-hold investor gets nothing from it.
Everything we say about SCHD on this page applies equally to QQQ vs SCHD, which also covers QQQ's ten-year record and its December 2025 change from a unit investment trust to an open-end fund. For the wrapper choice in detail, see QQQ vs QQQM.
Returns, Income and Tax
| Average annual return at NAV | 1 year | 3 years | 5 years |
|---|---|---|---|
| QQQM, to 30 Jun 2026 | 34.17% | 26.66% | 16.52% |
| SCHD, to 30 Jun 2026 | 24.08% | 13.52% | 8.51% |
| QQQM minus SCHD | +10.09 | +13.14 | +8.01 |
| QQQM after taxes on distributions | 33.96% | 26.44% | 16.35% |
| SCHD after taxes on distributions | 22.68% | 12.42% | 7.54% |
| Tax drag, QQQM / SCHD | 0.21 / 1.40 | 0.22 / 1.10 | 0.17 / 0.97 |
| QQQM, to 30 Sep 2026 (latest) | 23.79% | 28.11% | 16.40% |
Over five years, $10,000 at QQQM's rate would have grown to about $21,478; at SCHD's, about $15,043. That is hypothetical arithmetic by Wealthy Pot on a lump sum with no costs or taxes. It covers a period when large technology stocks led. QQQM's prospectus also shows the other side: its worst quarter in the period shown was -22.32%, in the three months to 30 June 2022.
On income, $100,000 in SCHD at a 3.37% SEC yield produces about $3,370 a year; in QQQM at 0.42%, about $420 (our arithmetic, assuming the yields hold). In a taxable account SCHD's larger payout cost it 0.97 points a year over five years, against 0.17 for QQQM. Inside an IRA or 401(k) neither figure applies.
This is educational information, not personalized investment advice. Past performance does not guarantee future results, and all investing carries the risk of loss.
Which One Fits You
Young, adding a fixed amount each month, and able to sit through a 20% quarter? QQQM is the growth side, and its lower share price and fee suit small regular purchases. It is still one index of 100 companies, half in one sector. Most long-term portfolios hold it beside a broad fund rather than alone; see QQQM vs VOO and QQQM vs VTI.
Drawing income? SCHD pays about eight times the yield at less than half the fee. Keep it in an IRA where possible.
Building a growth-and-income mix? With 5.2% overlap, QQQM and SCHD genuinely complement each other. A common pattern is a larger QQQM share while you are accumulating and a larger SCHD share as you approach retirement. That shift is a choice about risk and income; size it to your own plan. SCHG vs SCHD covers the same pairing with Schwab's growth fund, and QQQM vs SCHG compares the two growth options.
Already own QQQ in a taxable account? Do not sell it just to switch to QQQM. Selling realizes any gain, and the fee difference is $3 a year per $10,000. Point new money at QQQM instead.
Sources & Methodology
- Invesco Exchange-Traded Fund Trust II Form 485BPOS filed 18 December 2025: QQQM's 0.15% fee, $192 cost example, 6% turnover, index description and best and worst quarters.
- Invesco supplement dated 30 April 2026: the Nasdaq-100 methodology change effective 1 May 2026.
- QQQM semi-annual report, period ended 28 February 2026: NAV per share, net assets and GICS sectors. QQQ's report for 31 March 2026: QQQ's NAV per share.
- Invesco QQQM fund page: holdings, net assets, SEC yield and returns.
- Schwab Strategic Trust Form 485BPOS filed 22 December 2025 and the Schwab SCHD fund page (read 5 October 2026): SCHD's fee, index rules, yield, holdings, sectors and returns.
- Form N-PORT filings for QQQM and SCHD, both for 31 May 2026: the overlap and QQQM's top-ten weight.
Limits. Invesco's page has moved to 30 September 2026, so QQQM's 30 June figures are as Invesco published them and as we recorded them on 4 and 5 October 2026. The two NAV-per-share figures are a month apart. QQQM's sector weights are from February 2026 and SCHD's from June 2026.
This article is for general education and is not investment, tax or legal advice. Fund data changes daily, index returns cannot be invested in directly, and past performance does not guarantee future results. All investing carries the risk of loss. Figures were checked against the sources above on 5 October 2026.
FAQ: QQQM vs SCHD
Is QQQM better than SCHD?
For growth, its record is stronger: 16.52% a year over five years to 30 June 2026, against 8.51% for SCHD. SCHD is cheaper (0.06% vs 0.15%) and pays far more income (3.37% vs 0.42% SEC yield). They do different jobs.
How much do QQQM and SCHD overlap?
5.2%, from both funds' N-PORT filings for 31 May 2026. They share eight stocks: Texas Instruments, Qualcomm, PepsiCo, Amgen, ADP, Comcast, Fastenal and Paychex.
Should I hold QQQM and SCHD together?
It is a reasonable growth-and-income pair because they barely overlap. Together they still leave out most small companies and all international stocks, which a broad index fund would cover.
Is QQQM the same as QQQ?
Same index and almost identical holdings. QQQM costs 0.15% against 0.18% and has a lower share price. QQQ trades far more and has the deeper options market. See QQQ vs QQQM.
Does QQQM pay dividends?
Yes, but little: a 0.42% SEC yield on 1 October 2026, against 3.37% for SCHD.
Which is better in a Roth IRA?
A Roth removes the tax drag on SCHD's dividends, so either fits. Some investors put their highest-growth holdings in a Roth because qualified withdrawals are tax-free, but the right mix depends on your whole portfolio.
Why doesn't QQQM have a ten-year return?
It launched on 13 October 2020. For the Nasdaq-100's longer record, QQQ's ten-year return to 30 June 2026 was 22.07% a year, covered on QQQ vs SCHD.
Cite This Page
Journalists, educators and bloggers are welcome to cite this comparison. Please link back so readers can reach the underlying filings.
"QQQM vs SCHD: The Low-Cost Nasdaq-100 Against Schwab's Dividend Fund." Wealthy Pot, 2026. https://wealthypot.com/qqqm-vs-schd/
Related comparisons: QQQ vs SCHD · QQQ vs QQQM · QQQM vs SCHG · SCHG vs SCHD · QQQM vs VOO · SCHD vs SPY · All ETF comparisons
