BSEP vs SCHD
Innovator U.S. Equity Buffer ETF - September vs Schwab US Dividend Equity ETF
Which is better, BSEP or SCHD?
Option Writing against Large Cap Value.
SCHD has a lower expense ratio. BSEP led over 3Y and 5Y, SCHD over 1Y and the full window. BSEP is less concentrated, with 37.8% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BSEP | SCHD |
|---|---|---|
| Expense Ratio | 0.79% | 0.06%Best |
| AUM | $216M | $112.1B |
| Dividend Yield | 0.00% | 3.00% |
| Holdings | 12 | 103 |
| YTD Return | +10.64% | +23.68%Best |
| 1Y Return | +13.11% | +28.36%Best |
| 3Y Return (annualized) | +17.23%Best | +16.20% |
| 5Y Return (annualized) | +11.51%Best | +10.07% |
| Volatility (annualized) | 11.6%Best | 16.5% |
| Max Drawdown | -24.0%Best | -33.4% |
| $10,000 over 5 years | $17,241Best | $16,156 |
| Top 10 Weight | 37.8%Best | 41.8% |
| Fund Family | Innovator ETFs Trust | Charles Schwab Asset Management |
| Category | Alternative | Equity |
| Style | Option Writing | Large Cap Value |
| Inception | Aug 30, 2019 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 3, 2019 to Sep 22, 2026 (7.1 years).
BSEP vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7.1 years both funds cover.
BSEP vs SCHD Performance
Innovator U.S. Equity Buffer ETF - September (BSEP) is an ETF from Innovator ETFs Trust and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year BSEP returned +13.11% while SCHD returned +28.36%. Year to date, BSEP is up 10.64% versus a gain of 23.68% for SCHD.
Over three years, BSEP compounded at +17.23% per year against +16.20% for SCHD; over five years the annualized figures are +11.51% and +10.07% respectively. Across the full 7-year window we track, SCHD has the edge at +12.66% annualized vs +12.23%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 11.6% for BSEP. 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 -24.0% for BSEP and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BSEP charges 0.79% per year while SCHD charges 0.06%. On a $10,000 position that is $79 vs $6 annually, a gap of $73 per year that compounds over a long holding period. On income, BSEP currently yields 0.00% against 3.00% for SCHD.
Holdings Overlap
7.8% of BSEP's money is in holdings SCHD also owns. 93.1% of SCHD's money is in holdings BSEP also owns.
Most of SCHD is already inside BSEP. Owning both mostly buys the same companies twice.
44 positions in common, counted across the 491 positions we hold weights for in BSEP and 100 in SCHD, against full books of 12 and 103.
What only one of them owns
Our book lists 55 positions for SCHD that do not appear in our book for BSEP (6.9% of the fund), and 443 for BSEP that do not appear in SCHD (90.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in BSEP | Weight in SCHD | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 0.56% | 4.77% | 4.21% |
| AMGNAmgen Inc. | 0.36% | 4.70% | 4.34% |
| ABTAbbott Laboratories | 0.28% | 4.69% | 4.41% |
| KOCoca Cola Co. | 0.51% | 4.17% | 3.66% |
| CVXChevron Corp | 0.59% | 4.02% | 3.43% |
| UNHUnitedhealth Group Incorporated | 0.54% | 3.82% | 3.28% |
| HDHome Depot Inc/The | 0.47% | 3.88% | 3.41% |
| PGProcter & Gamble Company | 0.51% | 3.83% | 3.32% |
| VZVerizon Communic | 0.31% | 3.97% | 3.66% |
| COPConocophillips Common Stock USD 0.01 | 0.25% | 3.94% | 3.69% |
93.1% of SCHD is already inside BSEP.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BSEP or SCHD?
BSEP has an expense ratio of 0.79% while SCHD charges 0.06%. SCHD is the cheaper option, by $73 a year on a $10,000 investment.
Which performed better, BSEP or SCHD?
Over the past year BSEP returned +13.11% vs +28.36% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), BSEP annualized +12.23% vs +12.66% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BSEP or SCHD?
SCHD has been the more volatile fund at 16.5% annualized versus 11.6% for BSEP. Worst drawdown: BSEP -24.0% vs SCHD -33.4%.
Should I hold both BSEP and SCHD?
BSEP and SCHD have a monthly-return correlation of 0.81, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between BSEP and SCHD?
93.1% of SCHD's money is in holdings BSEP also owns. 93.1% of SCHD's is in holdings BSEP also owns. They hold 44 positions in common, counted across the 491 positions we hold weights for in BSEP and 100 in SCHD.
Which pays a higher dividend, BSEP or SCHD?
BSEP yields 0.00% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than BSEP?
SCHD has a lower expense ratio. BSEP led over 3Y and 5Y, SCHD over 1Y and the full window. BSEP is less concentrated, with 37.8% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.