CDX vs SCHD

CDX vs SCHD

Which is better, CDX or SCHD?

High Yield Bond against Large Cap Value.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 79.1%.

Lower Fees: SCHDHigher Returns: SCHDLess Concentrated: SCHD

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

MetricCDXSCHD
Expense Ratio0.25%0.06%Best
AUM$360M$112.2B
Dividend Yield8.32%3.13%
Holdings229103
YTD Return-2.51%+27.56%Best
1Y Return-2.87%+30.29%Best
3Y Return (annualized)+6.96%+16.37%Best
5Y Return (annualized)-+10.23%
Volatility (annualized)7.4%Best14.8%
Max Drawdown-13.2%Best-16.1%
$10,000 over 4.6 years$11,898$15,816Best
Top 10 Weight79.1%41.5%Best
Fund FamilySimplify Exchange Traded FundsCharles Schwab Asset Management
CategoryFixed IncomeEquity
StyleHigh Yield BondLarge Cap Value
InceptionFeb 14, 2022Oct 20, 2011

Volatility and max drawdown, and the $10,000 over 4.6 years row, are measured over the window both funds cover: Feb 15, 2022 to Sep 4, 2026 (4.6 years).

CDX 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 4.6 years both funds cover.

CDX vs SCHD Performance

Simplify High Yield ETF (CDX) is an ETF from Simplify Exchange Traded Funds and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year CDX returned -2.87% while SCHD returned +30.29%. Year to date, CDX is down 2.51% versus a gain of 27.56% for SCHD.

Over three years, CDX compounded at +6.96% per year against +16.37% for SCHD.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 7.4% for CDX. 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 -13.2% for CDX and -16.1% 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 0.45. They move together some of the time, and apart the rest.

Fees and Cost Over Time

CDX charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, CDX currently yields 8.32% against 3.13% for SCHD.

Holdings Overlap

CDX already in SCHD2.5%
SCHD already in CDX34.6%

2.5% of CDX's money is in holdings SCHD also owns. 34.6% of SCHD's money is in holdings CDX also owns.

The two portfolios partly overlap.

17 positions in common, counted across the 210 positions we hold weights for in CDX and 100 in SCHD, against full books of 229 and 103.

What only one of them owns

Our book lists 82 positions for SCHD that do not appear in our book for CDX (65.3% of the fund), and 93 for CDX that do not appear in SCHD (96.2%).

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

StockWeight in CDXWeight in SCHDDifference
AMGNAmgen Inc.0.24%4.62%4.38%
HDHome Depot Inc/The0.21%4.32%4.11%
MRKMerck & Company Inc0.23%4.26%4.03%
UNHUnitedhealth Group Incorporated0.20%4.11%3.91%
MOAltria Group Inc0.19%2.86%2.67%
ACNAccenture Plc0.28%2.70%2.42%
ADPAutomatic Data Processing, Inc.0.25%2.72%2.47%
SLBSchlumberger Nv.0.23%1.89%1.66%
EOGEog Resources Inc0.22%1.80%1.58%
FASTFastenal Co.0.23%1.49%1.26%

34.6% of SCHD is already inside CDX.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

CDXSCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, CDX or SCHD?

CDX has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option, by $19 a year on a $10,000 investment.

Which performed better, CDX or SCHD?

Over the past year CDX returned -2.87% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, CDX or SCHD?

SCHD has been the more volatile fund at 14.8% annualized versus 7.4% for CDX. Worst drawdown: CDX -13.2% vs SCHD -16.1%.

Should I hold both CDX and SCHD?

CDX and SCHD have a monthly-return correlation of 0.45, 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 CDX and SCHD?

34.6% of SCHD's money is in holdings CDX also owns. 34.6% of SCHD's is in holdings CDX also owns. They hold 17 positions in common, counted across the 210 positions we hold weights for in CDX and 100 in SCHD.

Which pays a higher dividend, CDX or SCHD?

CDX yields 8.32% while SCHD yields 3.13%, so CDX currently pays the higher dividend yield.

Is SCHD better than CDX?

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 79.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.