BCAT vs SCHD
BlackRock Capital Allocation Term Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. BCAT offers more diversification with 917 holdings.
Side-by-Side Comparison
| Metric | BCAT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.41% | 0.06% | |
| AUM | $1.6B | $108.7B | |
| Dividend Yield | 22.04% | 3.13% | |
| Holdings | 917 | 104 | |
| YTD Return | +26.01% | +26.50% | |
| 1Y Return | +31.02% | +31.25% | |
| 3Y Return (annualized) | +22.70% | +16.34% | |
| 5Y Return (annualized) | +9.16% | +10.10% | |
| Volatility (annualized) | 14.8% | 13.6% | |
| Max Drawdown | -36.1% | -33.4% | |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 25, 2020 | Oct 20, 2011 |
BCAT vs SCHD Performance
BlackRock Capital Allocation Term Trust (BCAT) is a ETF from BlackRock, Inc. (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BCAT returned +31.02% while SCHD returned +31.25%. Year to date, BCAT is up 26.01% versus a gain of 26.50% for SCHD.
Over three years, BCAT compounded at +22.70% per year against +16.34% for SCHD; over five years the annualized figures are +9.16% and +10.10% respectively. Across the full 6-year window we track, SCHD has the edge at +11.50% annualized vs +9.23%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BCAT has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 13.6% 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 -36.1% for BCAT 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BCAT charges 1.41% per year while SCHD charges 0.06%. On a $10,000 position that is $141 vs $6 annually, a gap of $135 per year that compounds over a long holding period. On income, BCAT currently yields 22.04% against 3.13% for SCHD.
Holdings Overlap
BCAT and SCHD share 8 holdings out of 408 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BCAT or SCHD?
BCAT has an expense ratio of 1.41% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $135 per year of difference.
Which performed better, BCAT or SCHD?
Over the past year BCAT returned +31.02% vs +31.25% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), BCAT annualized +9.23% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, BCAT or SCHD?
BCAT has been the more volatile fund at 14.8% annualized versus 13.6% for SCHD. Worst drawdown: BCAT -36.1% vs SCHD -33.4%.
Should I hold both BCAT and SCHD?
BCAT and SCHD have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BCAT and SCHD?
BCAT and SCHD share 8 common holdings with a 1.6% weight overlap. Combined, they hold 408 unique securities.
Which pays a higher dividend, BCAT or SCHD?
BCAT yields 22.04% while SCHD yields 3.13%, so BCAT currently pays the higher dividend yield.
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