GTO vs SCHD

GTO vs SCHD

Which is better, GTO or SCHD?

SCHD has been ahead.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SCHDHigher Returns: SCHD

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

MetricGTOSCHD
Expense Ratio0.35%0.06%Best
AUM$2.5B$112.1B
Dividend Yield4.90%3.00%
Holdings1,904103
YTD Return-2.28%+21.73%Best
1Y Return-1.08%+26.35%Best
3Y Return (annualized)+4.68%+16.02%Best
5Y Return (annualized)-0.74%+9.26%Best
Volatility (annualized)5.8%Best15.0%
Max Drawdown-21.1%Best-33.4%
$10,000 over 5 years$9,635$15,571Best
Fund FamilyInvesco (US)Charles Schwab Asset Management
CategoryFixed IncomeEquity
Style-Large Cap Value
InceptionFeb 10, 2016Oct 20, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Feb 10, 2016 to Sep 25, 2026 (10.6 years).

GTO 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

GTO vs SCHD Performance

Invesco Total Return Bond ETF (GTO) is an ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year GTO returned -1.08% while SCHD returned +26.35%. Year to date, GTO is down 2.28% versus a gain of 21.73% for SCHD.

Over three years, GTO compounded at +4.68% per year against +16.02% for SCHD; over five years the annualized figures are -0.74% and +9.26% respectively. Across the full 11-year window we track, SCHD has the edge at +11.88% annualized vs +1.00%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 5.8% for GTO. 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 -21.1% for GTO and -33.4% 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 0.49. They move together some of the time, and apart the rest.

Fees and Cost Over Time

GTO charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, GTO currently yields 4.90% against 3.00% for SCHD.

Holdings Overlap

SCHD already in GTO6.9%

At least 6.9% of SCHD's money is in holdings GTO also owns.

Stated as a floor: for GTO, our book for it covers 41.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

SCHD and GTO share little of their money.

4 positions in common, counted across the 525 positions we hold weights for in GTO and 100 in SCHD, against full books of 1,904 and 103.

Top Shared Holdings

StockWeight in GTOWeight in SCHDDifference
HDHome Depot Inc/The0.00%3.88%3.88%
FFord Motor Credit0.03%1.33%1.30%
FITBFifth Third Bancorp0.00%1.19%1.19%
PFGPrincipalfinancialgroupinc.0.02%0.53%0.51%

You are not choosing between two funds in isolation.

Whichever of GTO and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

GTOSCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, GTO or SCHD?

GTO has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option, by $29 a year on a $10,000 investment.

Which performed better, GTO or SCHD?

Over the past year GTO returned -1.08% vs +26.35% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), GTO annualized +1.00% vs +11.88% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, GTO or SCHD?

SCHD has been the more volatile fund at 15.0% annualized versus 5.8% for GTO. Worst drawdown: GTO -21.1% vs SCHD -33.4%.

Should I hold both GTO and SCHD?

GTO and SCHD have a monthly-return correlation of 0.49, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between GTO and SCHD?

At least 6.9% of SCHD's money is in holdings GTO also owns. Our book for GTO is partial, so the real figure is this or higher. They hold 4 positions in common, counted across the 525 positions we hold weights for in GTO and 100 in SCHD.

Which pays a higher dividend, GTO or SCHD?

GTO yields 4.90% while SCHD yields 3.00%, so GTO currently pays the higher dividend yield.

Is SCHD better than GTO?

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.