ECAT vs SCHD
BlackRock ESG Capital Allocation Term Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. ECAT offers more diversification with 1,008 holdings.
Side-by-Side Comparison
| Metric | ECAT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.43% | 0.06% | |
| AUM | $1.6B | $108.7B | |
| Dividend Yield | 22.11% | 3.13% | |
| Holdings | 1,008 | 104 | |
| YTD Return | +13.95% | +27.93% | |
| 1Y Return | +14.48% | +30.06% | |
| 3Y Return (annualized) | +20.43% | +16.25% | |
| 5Y Return (annualized) | +9.54% | +10.03% | |
| Volatility (annualized) | 17.7% | 13.6% | |
| Max Drawdown | -32.2% | -33.4% | |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 28, 2021 | Oct 20, 2011 |
ECAT vs SCHD Performance
BlackRock ESG Capital Allocation Term Trust (ECAT) is a ETF from BlackRock, Inc. (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year ECAT returned +14.48% while SCHD returned +30.06%. Year to date, ECAT is up 13.95% versus a gain of 27.93% for SCHD.
Over three years, ECAT compounded at +20.43% per year against +16.25% for SCHD; over five years the annualized figures are +9.54% and +10.03% respectively. Across the full 5-year window we track, SCHD has the edge at +11.56% annualized vs +9.54%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ECAT has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -32.2% for ECAT 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ECAT charges 1.43% per year while SCHD charges 0.06%. On a $10,000 position that is $143 vs $6 annually, a gap of $137 per year that compounds over a long holding period. On income, ECAT currently yields 22.11% against 3.13% for SCHD.
Holdings Overlap
ECAT and SCHD share 7 holdings out of 643 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ECAT or SCHD?
ECAT has an expense ratio of 1.43% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $137 per year of difference.
Which performed better, ECAT or SCHD?
Over the past year ECAT returned +14.48% vs +30.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), ECAT annualized +9.54% vs +11.56% for SCHD. Past performance does not guarantee future results.
Which is riskier, ECAT or SCHD?
ECAT has been the more volatile fund at 17.7% annualized versus 13.6% for SCHD. Worst drawdown: ECAT -32.2% vs SCHD -33.4%.
Should I hold both ECAT and SCHD?
ECAT and SCHD have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ECAT and SCHD?
ECAT and SCHD share 7 common holdings with a 1.6% weight overlap. Combined, they hold 643 unique securities.
Which pays a higher dividend, ECAT or SCHD?
ECAT yields 22.11% while SCHD yields 3.13%, so ECAT currently pays the higher dividend yield.
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