CEFS vs SCHD
Saba Closed-End Funds 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 | CEFS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 4.29% | 0.06% | |
| AUM | $426M | $103.7B | |
| Dividend Yield | 6.08% | 3.31% | |
| Holdings | 68 | 104 | |
| YTD Return | +11.65% | +25.33% | |
| 1Y Return | +16.34% | +32.31% | |
| 3Y Return (annualized) | +18.54% | +15.40% | |
| 5Y Return (annualized) | +12.64% | +9.70% | |
| Volatility (annualized) | 14.3% | 13.6% | |
| Max Drawdown | -39.0% | -33.4% | |
| Fund Family | Saba Capital | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Mar 20, 2017 | Oct 20, 2011 |
CEFS vs SCHD Performance
Saba Closed-End Funds ETF (CEFS) is a ETF from Saba Capital and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CEFS returned +16.34% while SCHD returned +32.31%. Year to date, CEFS is up 11.65% versus a gain of 25.33% for SCHD.
Over three years, CEFS compounded at +18.54% per year against +15.40% for SCHD; over five years the annualized figures are +12.64% and +9.70% respectively. Across the full 9-year window we track, CEFS has the edge at +11.65% annualized vs +11.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
CEFS has been the more volatile fund, with annualized monthly volatility of 14.3% 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 -39.0% for CEFS 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CEFS charges 4.29% per year while SCHD charges 0.06%. On a $10,000 position that is $429 vs $6 annually, a gap of $423 per year that compounds over a long holding period. On income, CEFS currently yields 6.08% against 3.31% for SCHD.
Holdings Overlap
CEFS and SCHD share 0 holdings out of 160 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, CEFS or SCHD?
CEFS has an expense ratio of 4.29% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $423 per year of difference.
Which performed better, CEFS or SCHD?
Over the past year CEFS returned +16.34% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), CEFS annualized +11.65% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, CEFS or SCHD?
CEFS has been the more volatile fund at 14.3% annualized versus 13.6% for SCHD. Worst drawdown: CEFS -39.0% vs SCHD -33.4%.
Should I hold both CEFS and SCHD?
CEFS and SCHD have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CEFS and SCHD?
CEFS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 160 unique securities.
Which pays a higher dividend, CEFS or SCHD?
CEFS yields 6.08% while SCHD yields 3.31%, so CEFS currently pays the higher dividend yield.
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