BUFF vs SCHD
BUFF vs SCHD
Innovator Laddered Allocation Power Buffer 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 100 holdings.
Side-by-Side Comparison
| Metric | BUFF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.89% | 0.06% | |
| AUM | $924M | $103.7B | |
| Dividend Yield | 0.00% | 3.31% | |
| Holdings | 14 | 104 | |
| YTD Return | +7.16% | +24.26% | |
| 1Y Return | +12.59% | +31.38% | |
| 3Y Return (annualized) | +11.87% | +15.08% | |
| 5Y Return (annualized) | +8.86% | +9.72% | |
| Volatility (annualized) | 13.4% | 13.6% | |
| Max Drawdown | -46.2% | -33.4% | |
| Fund Family | Innovator ETFs Trust | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Oct 20, 2016 | Oct 20, 2011 |
BUFF vs SCHD Performance
Innovator Laddered Allocation Power Buffer ETF (BUFF) is a ETF from Innovator ETFs Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BUFF returned +12.59% while SCHD returned +31.38%. Year to date, BUFF is up 7.16% versus a gain of 24.26% for SCHD.
Over three years, BUFF compounded at +11.87% per year against +15.08% for SCHD; over five years the annualized figures are +8.86% and +9.72% respectively. Across the full 10-year window we track, SCHD has the edge at +11.39% annualized vs +7.96%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 13.4% for BUFF. 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 -46.2% for BUFF 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BUFF charges 0.89% per year while SCHD charges 0.06%. On a $10,000 position that is $89 vs $6 annually, a gap of $83 per year that compounds over a long holding period. On income, BUFF currently yields 0.00% against 3.31% for SCHD.
Holdings Overlap
BUFF and SCHD share 0 holdings out of 112 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, BUFF or SCHD?
BUFF has an expense ratio of 0.89% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $83 per year of difference.
Which performed better, BUFF or SCHD?
Over the past year BUFF returned +12.59% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), BUFF annualized +7.96% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, BUFF or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.4% for BUFF. Worst drawdown: BUFF -46.2% vs SCHD -33.4%.
Should I hold both BUFF and SCHD?
BUFF and SCHD have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFF and SCHD?
BUFF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 112 unique securities.
Which pays a higher dividend, BUFF or SCHD?
BUFF yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.