Key Facts on Invesco QQQ ETF vs. Schwab U.S. Large-Cap Growth ETF
The Invesco QQQ ETF (NASDAQ: QQQ), known for its significant technology stock allocation, has achieved a remarkable 625% return over the past decade and a 1,600% increase since its launch in 1999. As of now, it holds approximately $492.3 billion in assets and charges an expense ratio of 0.18%. In comparison, the Schwab U.S. Large-Cap Growth ETF (NYSEMKT: SCHG) has 197 holdings, with $61.1 billion in assets and a notably lower expense ratio of 0.04%. While QQQ has recorded a year-to-date return of 21.1%, SCHG has returned 8.4% during the same period.
Both ETFs exhibit a high overlap of about 62%. However, they differ in sector exposure, with QQQ primarily concentrated in technology (67%) and SCHG more diversified (tech at 45%, communication services at 15%). Despite QQQ’s strong past performance, analysts suggest SCHG may present a better investment opportunity currently due to its diversification across sectors and lower expenses, which can yield greater long-term benefits.
Investors should consider these dynamics carefully when assessing their options in the growth ETF marketplace.
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