CGDG vs SCHD
Capital Group Dividend Growers 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 104 holdings.
Side-by-Side Comparison
| Metric | CGDG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.06% | |
| AUM | $5.7B | $108.7B | |
| Dividend Yield | 2.24% | 3.13% | |
| Holdings | 102 | 104 | |
| YTD Return | +9.47% | +28.63% | |
| 1Y Return | +17.01% | +32.53% | |
| 3Y Return (annualized) | +19.07% | +16.97% | |
| 5Y Return (annualized) | - | +10.47% | |
| Volatility (annualized) | 8.7% | 13.7% | |
| Max Drawdown | -10.5% | -33.4% | |
| Fund Family | Capital Group (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 26, 2023 | Oct 20, 2011 |
CGDG vs SCHD Performance
Capital Group Dividend Growers ETF (CGDG) is a ETF from Capital Group (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CGDG returned +17.01% while SCHD returned +32.53%. Year to date, CGDG is up 9.47% versus a gain of 28.63% for SCHD.
Over three years, CGDG compounded at +19.07% per year against +16.97% for SCHD. Across the full 3-year window we track, CGDG has the edge at +19.07% annualized vs +11.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 8.7% for CGDG. 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 -10.5% for CGDG 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGDG charges 0.47% per year while SCHD charges 0.06%. On a $10,000 position that is $47 vs $6 annually, a gap of $41 per year that compounds over a long holding period. On income, CGDG currently yields 2.24% against 3.13% for SCHD.
Holdings Overlap
CGDG and SCHD share 11 holdings out of 192 unique holdings combined, representing a 8.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CGDG or SCHD?
CGDG has an expense ratio of 0.47% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, CGDG or SCHD?
Over the past year CGDG returned +17.01% vs +32.53% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), CGDG annualized +19.07% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, CGDG or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 8.7% for CGDG. Worst drawdown: CGDG -10.5% vs SCHD -33.4%.
Should I hold both CGDG and SCHD?
CGDG and SCHD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGDG and SCHD?
CGDG and SCHD share 11 common holdings with a 8.7% weight overlap. Combined, they hold 192 unique securities.
Which pays a higher dividend, CGDG or SCHD?
CGDG yields 2.24% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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