CZA vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. CZA offers more diversification with 102 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: CZA

Side-by-Side Comparison

MetricCZASCHDWinner
Expense Ratio0.69%0.06%
AUM$189M$103.7B
Dividend Yield1.41%3.31%
Holdings104104
YTD Return+13.95%+25.62%
1Y Return+21.98%+32.62%
3Y Return (annualized)+13.76%+15.58%
5Y Return (annualized)+7.41%+9.63%
Volatility (annualized)16.6%13.6%
Max Drawdown-53.2%-33.4%
Fund FamilyInvesco (US)Charles Schwab Asset Management
CategoryEquityEquity
InceptionApr 2, 2007Oct 20, 2011

CZA vs SCHD Performance

Invesco Zacks Mid-Cap ETF (CZA) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CZA returned +21.98% while SCHD returned +32.62%. Year to date, CZA is up 13.95% versus a gain of 25.62% for SCHD.

Over three years, CZA compounded at +13.76% per year against +15.58% for SCHD; over five years the annualized figures are +7.41% and +9.63% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs +9.76%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

CZA has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -53.2% for CZA 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

CZA charges 0.69% per year while SCHD charges 0.06%. On a $10,000 position that is $69 vs $6 annually, a gap of $63 per year that compounds over a long holding period. On income, CZA currently yields 1.41% against 3.31% for SCHD.

Holdings Overlap

1.4%overlap

CZA and SCHD share 3 holdings out of 199 unique holdings combined, representing a 1.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in CZAWeight in SCHDDifference
CINF1.40%0.72%0.68%
RF1.41%0.68%0.73%
CAN0.63%0.03%0.60%

Frequently Asked Questions

Which is cheaper, CZA or SCHD?

CZA has an expense ratio of 0.69% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $63 per year of difference.

Which performed better, CZA or SCHD?

Over the past year CZA returned +21.98% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), CZA annualized +9.76% vs +11.47% for SCHD. Past performance does not guarantee future results.

Which is riskier, CZA or SCHD?

CZA has been the more volatile fund at 16.6% annualized versus 13.6% for SCHD. Worst drawdown: CZA -53.2% vs SCHD -33.4%.

Should I hold both CZA and SCHD?

CZA and SCHD have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CZA and SCHD?

CZA and SCHD share 3 common holdings with a 1.4% weight overlap. Combined, they hold 199 unique securities.

Which pays a higher dividend, CZA or SCHD?

CZA yields 1.41% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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