ALAI vs SCHD
Alger AI Enablers & Adopters ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. ALAI delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | ALAI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.06% | |
| AUM | $523M | $108.7B | |
| Dividend Yield | 1.26% | 3.13% | |
| Holdings | 72 | 104 | |
| YTD Return | +22.60% | +28.48% | |
| 1Y Return | +33.75% | +30.95% | |
| 3Y Return (annualized) | - | +16.80% | |
| 5Y Return (annualized) | - | +10.27% | |
| Volatility (annualized) | 25.9% | 13.7% | |
| Max Drawdown | -29.4% | -33.4% | |
| Fund Family | Alger | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 4, 2024 | Oct 20, 2011 |
ALAI vs SCHD Performance
Alger AI Enablers & Adopters ETF (ALAI) is a ETF from Alger and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year ALAI returned +33.75% while SCHD returned +30.95%. Year to date, ALAI is up 22.60% versus a gain of 28.48% for SCHD.
Risk: Volatility and Drawdowns
ALAI has been the more volatile fund, with annualized monthly volatility of 25.9% compared with 13.7% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -29.4% for ALAI and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ALAI charges 0.58% per year while SCHD charges 0.06%. On a $10,000 position that is $58 vs $6 annually, a gap of $52 per year that compounds over a long holding period. On income, ALAI currently yields 1.26% against 3.13% for SCHD.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, ALAI or SCHD?
ALAI has an expense ratio of 0.58% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, ALAI or SCHD?
Over the past year ALAI returned +33.75% vs +30.95% for SCHD, so ALAI leads on 1-year performance. Over the longest common window we track (2 years), ALAI annualized +40.79% vs +11.60% for SCHD. Past performance does not guarantee future results.
Which is riskier, ALAI or SCHD?
ALAI has been the more volatile fund at 25.9% annualized versus 13.7% for SCHD. Worst drawdown: ALAI -29.4% vs SCHD -33.4%.
Should I hold both ALAI and SCHD?
ALAI and SCHD have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ALAI and SCHD?
ALAI and SCHD share 2 common holdings with a 1.1% weight overlap. Combined, they hold 161 unique securities.
Which pays a higher dividend, ALAI or SCHD?
ALAI yields 1.26% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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