CEFD vs SCHD
ETRACS Monthly Pay 1.5X Leveraged Closed-End Fund Index ETN vs Schwab US Dividend Equity ETF
Which is better, CEFD or SCHD?
Multi Alternative against Large Cap Value.
SCHD led over 1Y, 3Y, 5Y and the full window.
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 | CEFD | SCHD |
|---|---|---|
| Expense Ratio | - | 0.06% |
| AUM | $8M | $111.6B |
| Dividend Yield | 14.82% | 3.24% |
| Holdings | - | 206 |
| YTD Return | -0.91% | +24.55%Best |
| 1Y Return | +0.96% | +29.85%Best |
| 3Y Return (annualized) | +15.05% | +16.64%Best |
| 5Y Return (annualized) | +1.19% | +9.54%Best |
| Volatility (annualized) | 19.2% | 15.3%Best |
| Max Drawdown | -37.0% | -16.9%Best |
| $10,000 over 5 years | $10,609 | $15,771Best |
| Fund Family | UBS AG | Charles Schwab Asset Management |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Value |
| Inception | Jun 2, 2020 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 3, 2020 to Oct 14, 2026 (6.4 years).
CEFD 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 6.4 years both funds cover.
CEFD vs SCHD Performance
ETRACS Monthly Pay 1.5X Leveraged Closed-End Fund Index ETN (CEFD) is an ETF from UBS AG and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year CEFD returned +0.96% while SCHD returned +29.85%. Year to date, CEFD is down 0.91% versus a gain of 24.55% for SCHD.
Over three years, CEFD compounded at +15.05% per year against +16.64% for SCHD; over five years the annualized figures are +1.19% and +9.54% respectively. Across the full 6-year window we track, SCHD has the edge at +13.86% annualized vs +6.01%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
CEFD has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 15.3% 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 -37.0% for CEFD and -16.9% 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 0.77. They usually move together, but the gap leaves some room for diversification.
You are not choosing between two funds in isolation.
Whichever of CEFD and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which performed better, CEFD or SCHD?
Over the past year CEFD returned +0.96% vs +29.85% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), CEFD annualized +6.01% vs +13.86% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, CEFD or SCHD?
CEFD has been the more volatile fund at 19.2% annualized versus 15.3% for SCHD. Worst drawdown: CEFD -37.0% vs SCHD -16.9%.
Should I hold both CEFD and SCHD?
CEFD and SCHD have a monthly-return correlation of 0.77, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, CEFD or SCHD?
CEFD yields 14.82% while SCHD yields 3.24%, so CEFD currently pays the higher dividend yield.
Is SCHD better than CEFD?
SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.