QQQ won this five-year monthly investment comparison. It left more wealth than SCHD, even with all dividends reinvested.
QQQ and SCHD are often compared, but they hold different stocks and handle income differently. Start with what happened when both received the same contributions, then consider the time period, drawdowns, and the role of dividends.
What was left after investing the same amount?
- Investment period
- –
- Initial investment
- USD 1,000
- Monthly investment
- USD 500 · day 1 of each month
- Total contributions
- $31,500.00
- Dividends
- Fully reinvested
- Currency
- USD · no currency conversion
Purchases use the next trading day when markets are closed. Both funds receive the same contributions on the same schedule. Taxes and transaction fees are not separately deducted.
| Metric | QQQ | SCHD |
|---|---|---|
| Final portfolio value | $57,212.30 | $43,390.50 |
| Cumulative return | +81.63% | +37.75% |
| Annualized return(XIRR) | +23.00% | +12.20% |
| Maximum drawdown | −35.12% | −16.83% |
QQQ finished with a higher portfolio value and cumulative return than SCHD. SCHD's dividends are included. Both results assume every distribution was reinvested.
Cumulative return measures the gain relative to total contributions. Each monthly contribution has a different time in the market, so this is not directly comparable to a lump-sum return. XIRR accounts for contribution amounts and dates; it does not mean the fund earned that rate every year.
Each point shows the gain relative to contributions made by that date, with dividends reinvested. Select a date to see both funds' cumulative returns.
The vertical axis shows cumulative return percentages. Use Left and Right Arrow or Home and End to explore returns by date. Use the wheel to zoom and drag to move through time.
| Date | Fund | Cumulative return |
|---|---|---|
| QQQ | 0.00% | |
| SCHD | 0.00% | |
| QQQ | +81.63% | |
| SCHD | +37.75% |
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How does the investment period change the result?
The end date and contribution schedule stay the same while only the start date changes. Maximum history begins on the first date with price data for both funds. Because the periods overlap, each row should not be read as a separate investment case.
| Investment period | QQQ | SCHD |
|---|---|---|
| 1 year
~ |
+16.01% | +13.77% |
| 3 years
~ |
+50.61% | +28.64% |
| 5 years
~ |
+81.63% | +37.75% |
| 10 years
~ |
+209.91% | +95.07% |
| Maximum history
~ |
+441.07% | +178.97% |
QQQ had the higher cumulative return over the latest year.
How far did each fund fall along the way?
The five-year maximum drawdowns were −35.12% for QQQ and −16.83% for SCHD. They measure each fund's decline from a previous peak after adjusting for new contributions. Each fund uses its own peak and trough dates.
A strong final return only matters if I can stay invested through the declines along the way. Investing money needed soon may force a sale while the market is down, which is why the drawdown matters alongside the return.
QQQ holds the Nasdaq-100; SCHD selects dividend stocks
QQQ tracks the Nasdaq-100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq. Large technology and growth companies have a substantial influence on its performance.
SCHD tracks the Dow Jones U.S. Dividend 100 Index. Its selection considers dividend sustainability and financial measures, rather than simply seeking the highest dividend yield.
QQQ for building wealth; SCHD when I need dividend income
My conclusion is to choose QQQ first while I am building wealth. If I can leave a lump sum invested for years or keep adding money each month without spending the dividends, total portfolio growth matters more to me than the size of each distribution. The table above tests monthly investing, so a lump-sum plan should be checked separately in the calculator.
SCHD still suits a clear need. For someone using investments to help cover living costs or regular bills, receiving dividends on a schedule may be easier than deciding when and how many shares to sell. That cash flow is the most practical reason to choose SCHD.
Dividend payments can shrink, and the share price can fall at the same time. These results reinvest every dividend, so they do not show the remaining balance or cash received by someone who spent the distributions.
QQQ won this five-year monthly investment comparison.
I believe we should invest so our money can grow alongside us. Study the holdings of QQQ and SCHD, then backtest your dates and contribution plan to find a choice you could maintain.
Compare QQQ and SCHD on your own terms
Adjust the dates, initial investment, monthly contributions, and dividend reinvestment. Choose USD or KRW, or try investing a lump sum instead.
Compare in the investment backtest calculatorThese results are in USD. When investing in KRW, exchange rates affect purchases and the final value. Enter investment amounts in the currency you select in the calculator.
This article combines the author’s investment opinion with a pretax historical simulation. Returns and losses depend on the asset and period. Calculation basis