AREA vs SCHD
Harbor AlphaEdge Next Generation REITs ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | AREA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.06% | |
| AUM | $2M | $108.7B | |
| Dividend Yield | 0.66% | 3.13% | |
| Holdings | 86 | 104 | |
| YTD Return | +8.88% | +25.69% | |
| 1Y Return | +7.75% | +30.41% | |
| 3Y Return (annualized) | - | +16.03% | |
| 5Y Return (annualized) | - | +9.64% | |
| Volatility (annualized) | 13.0% | 13.6% | |
| Max Drawdown | -21.1% | -33.4% | |
| Fund Family | Harbor Funds | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 3, 2024 | Oct 20, 2011 |
AREA vs SCHD Performance
Harbor AlphaEdge Next Generation REITs ETF (AREA) is a ETF from Harbor Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year AREA returned +7.75% while SCHD returned +30.41%. Year to date, AREA is up 8.88% versus a gain of 25.69% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 13.0% for AREA. 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 -21.1% for AREA 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AREA charges 0.50% per year while SCHD charges 0.06%. On a $10,000 position that is $50 vs $6 annually, a gap of $44 per year that compounds over a long holding period. On income, AREA currently yields 0.66% against 3.13% for SCHD.
Holdings Overlap
AREA and SCHD share 0 holdings out of 138 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AREA or SCHD?
AREA has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, AREA or SCHD?
Over the past year AREA returned +7.75% vs +30.41% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), AREA annualized +1.50% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, AREA or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.0% for AREA. Worst drawdown: AREA -21.1% vs SCHD -33.4%.
Should I hold both AREA and SCHD?
AREA and SCHD have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AREA and SCHD?
AREA and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 138 unique securities.
Which pays a higher dividend, AREA or SCHD?
AREA yields 0.66% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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