BDJ vs SCHD
Blackrock Enhanced Equity Dividend Trust 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 100 holdings.
Side-by-Side Comparison
| Metric | BDJ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.84% | 0.06% | |
| AUM | $1.8B | $103.7B | |
| Dividend Yield | 8.39% | 3.31% | |
| Holdings | 307 | 104 | |
| YTD Return | +8.90% | +24.26% | |
| 1Y Return | +21.83% | +31.38% | |
| 3Y Return (annualized) | +15.61% | +15.08% | |
| 5Y Return (annualized) | +9.12% | +9.72% | |
| Volatility (annualized) | 17.5% | 13.6% | |
| Max Drawdown | -67.3% | -33.4% | |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Aug 26, 2005 | Oct 20, 2011 |
BDJ vs SCHD Performance
Blackrock Enhanced Equity Dividend Trust (BDJ) 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 BDJ returned +21.83% while SCHD returned +31.38%. Year to date, BDJ is up 8.90% versus a gain of 24.26% for SCHD.
Over three years, BDJ compounded at +15.61% per year against +15.08% for SCHD; over five years the annualized figures are +9.12% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BDJ has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -67.3% for BDJ 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BDJ charges 0.84% per year while SCHD charges 0.06%. On a $10,000 position that is $84 vs $6 annually, a gap of $78 per year that compounds over a long holding period. On income, BDJ currently yields 8.39% against 3.31% for SCHD.
Holdings Overlap
BDJ and SCHD share 9 holdings out of 176 unique holdings combined, representing a 9.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BDJ or SCHD?
BDJ has an expense ratio of 0.84% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $78 per year of difference.
Which performed better, BDJ or SCHD?
Over the past year BDJ returned +21.83% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), BDJ annualized +0.38% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, BDJ or SCHD?
BDJ has been the more volatile fund at 17.5% annualized versus 13.6% for SCHD. Worst drawdown: BDJ -67.3% vs SCHD -33.4%.
Should I hold both BDJ and SCHD?
BDJ and SCHD have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BDJ and SCHD?
BDJ and SCHD share 9 common holdings with a 9.9% weight overlap. Combined, they hold 176 unique securities.
Which pays a higher dividend, BDJ or SCHD?
BDJ yields 8.39% while SCHD yields 3.31%, so BDJ currently pays the higher dividend yield.
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