QQQM vs SCHD: Correlation & Overlap
Measured on weekly returns over the past three years, Invesco Nasdaq 100 ETF (QQQM) and Schwab US Dividend Equity ETF (SCHD) carry a correlation of 0.39, a moderate link. Looking through to holdings, 5.1% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and SCHD?
Across a 3-year window, the weekly returns of QQQM and SCHD correlate at 0.39, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.01 versus 0.39 over 3 years. Stretching to 5 years gives 0.57, with an annualized covariance of 98.6 %².
By 3-year correlation, SCHD places #86 of the 103 assets tracked against QQQM. Twelve-month performance is nearly a tie, at +26.4% for QQQM and +29.6% for SCHD. This link changes with the market regime, having swung between 0.01 and 0.67 on a rolling one-year basis. Note the risk asymmetry: QQQM runs 1.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
QQQM vs SCHD: side by side
| QQQM (Invesco Nasdaq 100 ETF) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +26.4% | +29.6% |
| 5-year return | +96.1% | +60.9% |
| Volatility (ann.) | 19.5% | 12.9% |
| Beta vs S&P 500 | 1.28 | 0.52 |
| Max drawdown (3Y) | -22.7% | -16.1% |
| Dividend yield | 0.46% | 3.13% |
| Expense ratio | 0.15% | 0.06% |
| Assets under management | $97.1B | $104.2B |
| Sector / category | ETF · US Growth & Tech | ETF · Dividend |
QQQM is a Large Growth fund from Invesco: $97.1B under management, 105 holdings, a 0.15% expense ratio, a 0.46% 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 QQQM 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 QQQM | Weight in SCHD |
|---|---|---|
| AMGN | 1.06% | 4.80% |
| TXN | 1.06% | 3.13% |
| PEP | 0.86% | 3.68% |
| QCOM | 0.76% | 2.41% |
| ADP | 0.50% | 2.73% |
| CMCSA | 0.43% | 2.35% |
| FAST | 0.26% | 1.43% |
| PAYX | 0.20% | 0.98% |
| USD | 0.00% | 0.02% |
Largest positions held only by QQQM: 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 | QQQM | SCHD |
|---|---|---|
| 2022 | -32.5% | -3.3% |
| 2023 | +55.0% | +4.5% |
| 2024 | +25.7% | +11.7% |
| 2025 | +20.9% | +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 QQQM 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 QQQM and SCHD?
Using weekly returns as of 2026-08-27: 0.39 over 3 years, with 0.01 over the last year and 0.57 over 5 years.
Is SCHD a good diversifier for QQQM?
Yes, to a useful degree: a correlation of 0.39 leaves real independence between the two, which historically damped combined volatility.
How much do QQQM and SCHD overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 5.1% by weight over 9 common positions.
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Hubs: QQQM correlations · SCHD correlations
