GTOQ vs SCHD
Invesco High Yield Systematic Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. GTOQ offers more diversification with 489 holdings.
Side-by-Side Comparison
| Metric | GTOQ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $182M | $108.7B | |
| Dividend Yield | 6.88% | 3.13% | |
| Holdings | 489 | 104 | |
| YTD Return | +2.82% | +28.70% | |
| 1Y Return | +5.79% | +32.27% | |
| 3Y Return (annualized) | +8.79% | +17.27% | |
| 5Y Return (annualized) | +3.98% | +10.23% | |
| Volatility (annualized) | 6.7% | 13.7% | |
| Max Drawdown | -15.7% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 2, 2020 | Oct 20, 2011 |
GTOQ vs SCHD Performance
Invesco High Yield Systematic Bond ETF (GTOQ) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year GTOQ returned +5.79% while SCHD returned +32.27%. Year to date, GTOQ is up 2.82% versus a gain of 28.70% for SCHD.
Over three years, GTOQ compounded at +8.79% per year against +17.27% for SCHD; over five years the annualized figures are +3.98% and +10.23% respectively. Across the full 6-year window we track, SCHD has the edge at +11.63% annualized vs +4.24%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 6.7% for GTOQ. 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 -15.7% for GTOQ 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GTOQ charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, GTOQ currently yields 6.88% against 3.13% for SCHD.
Holdings Overlap
GTOQ and SCHD share 0 holdings out of 509 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GTOQ or SCHD?
GTOQ has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, GTOQ or SCHD?
Over the past year GTOQ returned +5.79% vs +32.27% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), GTOQ annualized +4.24% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, GTOQ or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 6.7% for GTOQ. Worst drawdown: GTOQ -15.7% vs SCHD -33.4%.
Should I hold both GTOQ and SCHD?
GTOQ and SCHD have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GTOQ and SCHD?
GTOQ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, GTOQ or SCHD?
GTOQ yields 6.88% while SCHD yields 3.13%, so GTOQ currently pays the higher dividend yield.
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