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SCHD vs. QQQJ

Schwab US Dividend Equity ETF

SCHD
$--
vs

Invesco Exchange-Traded Fund Trust II Invesco NASDAQ Next Gen 100 ETF

QQQJ
$--

Correlation

0.83
SCHDSchwab US Dividend Equity ETF
QQQJInvesco Exchange-Traded Fund Trust II Invesco NASDAQ Next Gen 100 ETF

What is SCHD?

The ETF seeks investment results that track, as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index. Provides exposure to high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends and have strong relative fundamental strength based on select financial ratios.

Snapshot
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SCHD Schwab US Dividend Equity ETF
QQQJ Invesco Exchange-Traded Fund Trust II Invesco NASDAQ Next Gen 100 ETF
Inception date
Oct 20 2011
Oct 13 2020
Expense ratio
0.06%
0.15%
SCHD has a lower expense ratio than QQQJ by 0.09%. This can indicate that it’s cheaper to invest in SCHD than QQQJ.
Type
US Equities
US Equities
SCHD targets investing in US Equities, while QQQJ targets investing in US Equities.
Fund owner
Schwab
Invesco
SCHD is managed by Schwab, while QQQJ is managed by Invesco.
Volume (1m avg. daily)
$191,902,599
$1,918,273
SCHD is considered a high-volume asset, while ETF2 is low-volume. Low-volume assets will suffer from poor execution price – you can find a high-volume alternative ETF in QQQJ’s related ETFs section.
AUM
$47,737,029,197
$653,701,993
SCHD has more assets under management than QQQJ by $47,083,327,204. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
Dow Jones U.S. Dividend 100 Index
NASDAQ Next Generation 100 Index
SCHD is based off of the Dow Jones U.S. Dividend 100 Index, while QQQJ is based off of the NASDAQ Next Generation 100 Index
Inverse/Leveraged
No
No
SCHD and QQQJ use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
SCHD and QQQJ both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
Yes
No
SCHD may offer dividends, while QQQJ does not. The frequency and yield of the dividend for SCHD may vary.
Prospectus
Neither SCHD nor QQQJ require a K1.
SCHD and QQQJ’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

Automated Strategies
Related toSCHD

#OPUS-12

Opus-12

Category

Opus, Investing for the Long-Term

Risk Rating

Moderate

Automated Strategies
Related toQQQJ

#GLOBE

Follow the Global Trend

Category

Momentum, Lever Up, Go Global, Diversification

Risk Rating

Moderate

Create your own algorithmic
trading strategy

Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

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We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.