QQQ vs SCHD: Correlation & Overlap
Measured on weekly returns over the past three years, Invesco QQQ Trust (QQQ) and Schwab US Dividend Equity ETF (SCHD) carry a correlation of 0.39, a moderate link. The two funds also share 5.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and SCHD?
Across a 3-year window, the weekly returns of QQQ and SCHD correlate at 0.39, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.00 versus 0.39 over 3 years. Stretching to 5 years gives 0.57, with an annualized covariance of 98.9 %².
By 3-year correlation, SCHD places #717 of the 4755 assets tracked against QQQ. Their 12-month results are close: +26.3% for QQQ against +29.6% for SCHD. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.01 to 0.67. Risk is not evenly split, since QQQ carries 1.5 times the volatility of the other side.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
QQQ vs SCHD: side by side
| QQQ (Invesco QQQ Trust) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +26.3% | +29.6% |
| 5-year return | +95.4% | +60.9% |
| Volatility (ann.) | 19.6% | 12.9% |
| Beta vs S&P 500 | 1.28 | 0.52 |
| Max drawdown (3Y) | -22.8% | -16.1% |
| Dividend yield | 0.44% | 3.13% |
| Expense ratio | 0.18% | 0.06% |
| Assets under management | $452.8B | $104.2B |
| Sector / category | ETF · US Growth & Tech | ETF · Dividend |
On the fund side, QQQ sits in the Large Growth category at Invesco, with $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield. SCHD, Schwab ETFs's Large Value fund, carries $104.2B under management, 101 holdings, a 0.06% expense ratio, a 3.13% trailing dividend yield.
Portfolio overlap between QQQ and SCHD
The two portfolios are largely distinct, with 9 holdings in common adding up to 5.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in QQQ | Weight in SCHD |
|---|---|---|
| AMGN | 1.06% | 4.80% |
| TXN | 1.06% | 3.13% |
| PEP | 0.86% | 3.68% |
| QCOM | 0.77% | 2.41% |
| ADP | 0.50% | 2.73% |
| CMCSA | 0.43% | 2.35% |
| FAST | 0.26% | 1.43% |
| PAYX | 0.20% | 0.98% |
| USD | 0.09% | 0.02% |
Largest positions held only by QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by SCHD: MRK (4.92%), ABT (4.83%), KO (4.22%), VZ (3.97%), HD (3.94%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 9 common positions shown.
Year-by-year returns
| Year | QQQ | SCHD |
|---|---|---|
| 2022 | -32.6% | -3.3% |
| 2023 | +54.9% | +4.5% |
| 2024 | +25.6% | +11.7% |
| 2025 | +20.8% | +4.3% |
| 2026 | +17.7% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and SCHD good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.39 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between QQQ and SCHD?
The QQQ/SCHD correlation stands at 0.39 on a 3-year window (1 year: 0.00, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is SCHD a good diversifier for QQQ?
Yes, to a useful degree: a correlation of 0.39 leaves real independence between the two, which historically damped combined volatility.
How much do QQQ and SCHD overlap?
5.1% by weight, across 9 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Hubs: QQQ correlations · SCHD correlations
