DIVY vs SCHD
Sound Equity Dividend Income 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 | DIVY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.06% | |
| AUM | $29M | $103.7B | |
| Dividend Yield | 3.11% | 3.31% | |
| Holdings | 37 | 104 | |
| YTD Return | +18.77% | +25.62% | |
| 1Y Return | +27.48% | +32.62% | |
| 3Y Return (annualized) | +10.15% | +15.58% | |
| 5Y Return (annualized) | +8.18% | +9.63% | |
| Volatility (annualized) | 15.0% | 13.6% | |
| Max Drawdown | -18.3% | -33.4% | |
| Fund Family | Sound Income Strategies | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2020 | Oct 20, 2011 |
DIVY vs SCHD Performance
Sound Equity Dividend Income ETF (DIVY) is a ETF from Sound Income Strategies and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DIVY returned +27.48% while SCHD returned +32.62%. Year to date, DIVY is up 18.77% versus a gain of 25.62% for SCHD.
Over three years, DIVY compounded at +10.15% per year against +15.58% for SCHD; over five years the annualized figures are +8.18% and +9.63% respectively. Across the full 6-year window we track, DIVY has the edge at +12.28% annualized vs +11.47%. 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 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 -18.3% for DIVY 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 0.92. 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 3.11% against 3.31% for SCHD.
Holdings Overlap
DIVY and SCHD share 8 holdings out of 128 unique holdings combined, representing a 9.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $39 per year of difference.
Which performed better, DIVY or SCHD?
Over the past year DIVY returned +27.48% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), DIVY annualized +12.28% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, DIVY or SCHD?
DIVY has been the more volatile fund at 15.0% annualized versus 13.6% for SCHD. Worst drawdown: DIVY -18.3% vs SCHD -33.4%.
Should I hold both DIVY and SCHD?
DIVY and SCHD have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between DIVY and SCHD?
DIVY and SCHD share 8 common holdings with a 9.3% weight overlap. Combined, they hold 128 unique securities.
Which pays a higher dividend, DIVY or SCHD?
DIVY yields 3.11% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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