VOO vs QQQ vs SCHD: which ETF is best for you in 2026?

For most long-term investors, VOO is the best of the three to build around: it’s the whole S&P 500, it costs almost nothing, and it has kept up well. QQQ has grown fastest but falls hardest. SCHD is the calmest and pays the most in dividends, but it has trailed badly on total return.

Label: comparison and opinion. General education, not financial advice. All investments can lose value, and past returns don’t predict future ones. Figures are total returns with dividends reinvested, from Total Real Returns, as of late October 2026.

What does each ETF actually own?

• VOO (Vanguard S&P 500 ETF) owns the roughly 500 large US companies in the S&P 500. It’s the broadest of the three.
• QQQ (Invesco QQQ Trust) owns the Nasdaq-100: the 100 largest non-financial companies on the Nasdaq. It’s heavy in technology.
• SCHD (Schwab U.S. Dividend Equity ETF) owns about 100 US companies chosen for steady, well-covered dividends. It holds far less tech.

So these aren’t three versions of the same thing. VOO is the market. QQQ is a bet on big tech. SCHD is a bet on mature, dividend-paying businesses.

Which one has returned the most?

QQQ, by a distance, over this period. According to Total Real Returns, $10,000 invested at the end of August 2022 grew to about $24,004 in QQQ, $20,246 in VOO and $16,907 in SCHD by October 23, 2026.

The year-by-year numbers show how different the ride was:

Total returns with dividends reinvested. Source: Total Real Returns.

Which one is the riskiest?

QQQ. In 2022 it lost almost a third of its value, while SCHD lost only about 3%. When a handful of tech giants drive the market, as they did again in late 2026 with Nvidia overtaking Apple in market value, according to Benzinga, QQQ leads. When they fall together, QQQ falls hardest.

SCHD is the opposite. It held up best in 2022, but it has lagged far behind in every year since. Low risk has come with low growth.

What do they cost?

Expense ratios from the issuers: Vanguard, Schwab and Invesco. All three are cheap. QQQ is the most expensive, but even its fee is small next to the differences in returns.

How does the Pylcrow Core Fund Test score them?

We asked five questions about each fund as the main holding in a long-term portfolio, each scored 0, 1 or 2.

VOO and SCHD tie on points, but they win in different ways. VOO wins on growth and breadth. SCHD wins on calm and income. QQQ scores low as a core holding because almost all of its strength is in one area, even though it has made the most money.

So which would we pick?

• Building wealth over decades: VOO as the core. It’s the simplest way to own the US market.
• Want more growth and can handle big drops: VOO plus a smaller slice of QQQ. Remember that VOO already holds the same tech giants, so you’re doubling up on them.
• Living off the income, or nervous about volatility: SCHD can play a bigger role, accepting slower growth.

If you live outside the US, check the tax rules before buying US-listed ETFs. Non-US investors often face US withholding tax on dividends (up to 30% without a tax treaty), which hurts SCHD’s main advantage most. Some investors use Ireland-listed versions of similar funds instead. Our ETFs explained guide covers the basics.

Pylcrow’s take: the boring choice keeps winning

QQQ gets the headlines and SCHD gets the dividend fans, but VOO does the most work for the least drama. It owns the winners whatever they turn out to be, at a cost of three dollars a year per $10,000.

The worst move is picking a fund based on the last two years and switching when it has a bad one. Choose the job you need done, pick the fund that does it, and stay put.

Frequently asked questions

Is VOO or QQQ better?

QQQ has grown faster in recent years but fell much harder in 2022. VOO is broader and cheaper. For most long-term investors, VOO is the better core.

Is SCHD a good investment?

SCHD is a low-cost, steady dividend fund that held up well in 2022, but it has trailed VOO and QQQ by a wide margin on total return since.

Can I own VOO and QQQ together?

Yes, but there is a big overlap, because the largest companies in QQQ are also the largest in VOO. Owning both increases your tech exposure.

What are the expense ratios of VOO, QQQ and SCHD?

VOO charges 0.03%, SCHD 0.06% and QQQ 0.20% a year, according to their issuers.

What is the Pylcrow Core Fund Test?

It’s our five-question score for a fund’s fitness as the main holding in a portfolio: diversification, growth record, bad-year resilience, cost and income.

What should you read next?

Read dividends explained, what a $5,953-a-month dividend portfolio really costs and how to start investing. More in Pylcrow Money.

The full Pylcrow Money starter series:

1. Investing explained: it’s not as complicated as people make it sound
2. Before you buy your first stock, read this
3. ETFs explained: how one purchase can mean owning hundreds
4. The internet is obsessed with making you rich
5. Dividends explained: what’s the catch?
6. Stocks, bonds, gold and cash: what does each one do?
7. Why your first $1,000 matters more than you think
8. Passive income isn’t as passive as they tell you
9. The market crashed. Do you need to do anything?
10. If I had to learn investing again, this is where I’d start

Before you act on any of this

Not financial advice. Pylcrow Money is general educational material, not individual investment, legal or tax advice. All examples are hypothetical and are not a forecast or a promise of returns. Investing involves risk, including losing money. Which funds you can buy, and the fees, taxes, rules and currency costs that apply, depend on where you live and on your own situation. If you are unsure, speak to a licensed adviser in your country. Read our full disclaimer.

By Pylcrow. Last reviewed: November 2, 2026.

Sources: Total Real Returns (total returns, dividends reinvested); Vanguard, Invesco and Schwab fund pages; Benzinga. Scores are Pylcrow’s opinion. Photos under the Unsplash License.