DFNL vs SCHD
Davis Select Financial 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 | DFNL | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.06% | |
| AUM | $495M | $108.7B | |
| Dividend Yield | 1.29% | 3.13% | |
| Holdings | 33 | 104 | |
| YTD Return | +8.97% | +26.54% | |
| 1Y Return | +19.68% | +30.90% | |
| 3Y Return (annualized) | +25.01% | +16.29% | |
| 5Y Return (annualized) | +12.98% | +9.65% | |
| Volatility (annualized) | 19.9% | 13.6% | |
| Max Drawdown | -44.5% | -33.4% | |
| Fund Family | Davis ETFs | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jan 11, 2017 | Oct 20, 2011 |
DFNL vs SCHD Performance
Davis Select Financial ETF (DFNL) is a ETF from Davis ETFs and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DFNL returned +19.68% while SCHD returned +30.90%. Year to date, DFNL is up 8.97% versus a gain of 26.54% for SCHD.
Over three years, DFNL compounded at +25.01% per year against +16.29% for SCHD; over five years the annualized figures are +12.98% and +9.65% respectively. Across the full 10-year window we track, DFNL has the edge at +12.58% annualized vs +11.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFNL has been the more volatile fund, with annualized monthly volatility of 19.9% 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 -44.5% for DFNL 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFNL charges 0.61% per year while SCHD charges 0.06%. On a $10,000 position that is $61 vs $6 annually, a gap of $55 per year that compounds over a long holding period. On income, DFNL currently yields 1.29% against 3.13% for SCHD.
Holdings Overlap
DFNL and SCHD share 1 holdings out of 130 unique holdings combined, representing a 1.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in DFNL | Weight in SCHD | Difference |
|---|---|---|---|
| FITB | 6.04% | 1.30% | 4.74% |
Frequently Asked Questions
Which is cheaper, DFNL or SCHD?
DFNL has an expense ratio of 0.61% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $55 per year of difference.
Which performed better, DFNL or SCHD?
Over the past year DFNL returned +19.68% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), DFNL annualized +12.58% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, DFNL or SCHD?
DFNL has been the more volatile fund at 19.9% annualized versus 13.6% for SCHD. Worst drawdown: DFNL -44.5% vs SCHD -33.4%.
Should I hold both DFNL and SCHD?
DFNL and SCHD have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFNL and SCHD?
DFNL and SCHD share 1 common holdings with a 1.3% weight overlap. Combined, they hold 130 unique securities.
Which pays a higher dividend, DFNL or SCHD?
DFNL yields 1.29% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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