GAB vs SCHD
Gabelli Equity Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. GAB offers more diversification with 655 holdings.
Side-by-Side Comparison
| Metric | GAB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.50% | 0.06% | |
| AUM | $2.4B | $103.7B | |
| Dividend Yield | 10.10% | 3.31% | |
| Holdings | 682 | 104 | |
| YTD Return | -0.71% | +25.33% | |
| 1Y Return | +7.95% | +32.31% | |
| 3Y Return (annualized) | +12.88% | +15.40% | |
| 5Y Return (annualized) | +7.20% | +9.70% | |
| Volatility (annualized) | 20.1% | 13.6% | |
| Max Drawdown | -83.0% | -33.4% | |
| Fund Family | Gabelli Funds | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 21, 1986 | Oct 20, 2011 |
GAB vs SCHD Performance
Gabelli Equity Trust (GAB) is a ETF from Gabelli Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year GAB returned +7.95% while SCHD returned +32.31%. Year to date, GAB is down 0.71% versus a gain of 25.33% for SCHD.
Over three years, GAB compounded at +12.88% per year against +15.40% for SCHD; over five years the annualized figures are +7.20% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +0.54%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GAB has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -83.0% for GAB 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
GAB charges 1.50% per year while SCHD charges 0.06%. On a $10,000 position that is $150 vs $6 annually, a gap of $144 per year that compounds over a long holding period. On income, GAB currently yields 10.10% against 3.31% for SCHD.
Holdings Overlap
GAB and SCHD share 26 holdings out of 729 unique holdings combined, representing a 7.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GAB or SCHD?
GAB has an expense ratio of 1.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $144 per year of difference.
Which performed better, GAB or SCHD?
Over the past year GAB returned +7.95% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), GAB annualized +0.54% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, GAB or SCHD?
GAB has been the more volatile fund at 20.1% annualized versus 13.6% for SCHD. Worst drawdown: GAB -83.0% vs SCHD -33.4%.
Should I hold both GAB and SCHD?
GAB and SCHD have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GAB and SCHD?
GAB and SCHD share 26 common holdings with a 7.8% weight overlap. Combined, they hold 729 unique securities.
Which pays a higher dividend, GAB or SCHD?
GAB yields 10.10% while SCHD yields 3.31%, so GAB currently pays the higher dividend yield.
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