DIVY vs SCHD

DIVY vs SCHD

Which is better, DIVY or SCHD?

SCHD has been ahead.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. DIVY is less concentrated, with 37.7% of the fund in its ten largest positions against 41.8%.

Lower Fees: SCHDHigher Returns: SCHDLess Concentrated: DIVY

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

MetricDIVYSCHD
Expense Ratio0.45%0.06%Best
AUM$29M$112.1B
Dividend Yield2.97%3.00%
Holdings37103
YTD Return+14.91%+23.60%Best
1Y Return+18.61%+28.29%Best
3Y Return (annualized)+10.17%+16.25%Best
5Y Return (annualized)+8.79%+10.25%Best
Volatility (annualized)15.0%14.7%Best
Max Drawdown-18.3%-16.9%Best
$10,000 over 5 years$15,239$16,289Best
Top 10 Weight37.7%Best41.8%
Fund FamilySound Income StrategiesCharles Schwab Asset Management
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionDec 30, 2020Oct 20, 2011

Volatility and max drawdown are measured over the window both funds cover: Dec 31, 2020 to Sep 21, 2026 (5.7 years).

DIVY 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 5.7 years both funds cover.

DIVY vs SCHD Performance

Sound Equity Dividend Income ETF (DIVY) is an ETF from Sound Income Strategies and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year DIVY returned +18.61% while SCHD returned +28.29%. Year to date, DIVY is up 14.91% versus a gain of 23.60% for SCHD.

Over three years, DIVY compounded at +10.17% per year against +16.25% for SCHD; over five years the annualized figures are +8.79% and +10.25% respectively. Across the full 6-year window we track, SCHD has the edge at +12.00% annualized vs +11.38%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DIVY has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 14.7% 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 -18.3% for DIVY 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

DIVY charges 0.45% per year while SCHD charges 0.06%. On a $10,000 position that is $45 vs $6 annually, a gap of $39 per year that compounds over a long holding period. On income, DIVY currently yields 2.97% against 3.00% for SCHD.

Holdings Overlap

DIVY already in SCHD20.4%
SCHD already in DIVY11.1%

20.4% of DIVY's money is in holdings SCHD also owns. 11.1% of SCHD's money is in holdings DIVY also owns.

DIVY and SCHD share little of their money.

8 positions in common, counted across the 36 positions we hold weights for in DIVY and 100 in SCHD, against full books of 37 and 103.

What only one of them owns

Our book lists 91 positions for SCHD that do not appear in our book for DIVY (88.8% of the fund), and 25 for DIVY that do not appear in SCHD (70.5%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in DIVYWeight in SCHDDifference
ACNAccenture Plc4.31%2.84%1.47%
PEPPepsico Inc.1.98%3.64%1.66%
UPSUnited Parcel Service, Inc3.21%1.90%1.31%
OKEOneok Inc.2.85%1.47%1.38%
PFGPrincipalfinancialgroupinc.3.03%0.53%2.50%
DINOHF Sinclair Corp2.43%0.38%2.05%
FNFFidelity Nationa1.39%0.29%1.10%
WENWendy's Co/the1.19%0.03%1.16%

20.4% of DIVY is already inside SCHD.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

DIVYSCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, DIVY or SCHD?

DIVY has an expense ratio of 0.45% while SCHD charges 0.06%. SCHD is the cheaper option, by $39 a year on a $10,000 investment.

Which performed better, DIVY or SCHD?

Over the past year DIVY returned +18.61% vs +28.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), DIVY annualized +11.38% vs +12.00% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, DIVY or SCHD?

DIVY has been the more volatile fund at 15.0% annualized versus 14.7% for SCHD. Worst drawdown: DIVY -18.3% vs SCHD -16.9%.

Should I hold both DIVY and SCHD?

DIVY and SCHD have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between DIVY and SCHD?

20.4% of DIVY's money is in holdings SCHD also owns. 11.1% of SCHD's is in holdings DIVY also owns. They hold 8 positions in common, counted across the 36 positions we hold weights for in DIVY and 100 in SCHD.

Which pays a higher dividend, DIVY or SCHD?

DIVY yields 2.97% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.

Is SCHD better than DIVY?

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. DIVY is less concentrated, with 37.7% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.