HAPS vs SCHD
Harbor Human Capital Factor US Small Cap ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. HAPS delivered stronger 1-year returns. HAPS offers more diversification with 195 holdings.
Side-by-Side Comparison
| Metric | HAPS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.06% | |
| AUM | $171M | $103.7B | |
| Dividend Yield | 0.47% | 3.31% | |
| Holdings | 202 | 104 | |
| YTD Return | +22.06% | +24.26% | |
| 1Y Return | +34.36% | +31.38% | |
| 3Y Return (annualized) | +13.59% | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 19.5% | 13.6% | |
| Max Drawdown | -27.4% | -33.4% | |
| Fund Family | Harbor Funds | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 27, 2023 | Oct 20, 2011 |
HAPS vs SCHD Performance
Harbor Human Capital Factor US Small Cap ETF (HAPS) is a ETF from Harbor Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HAPS returned +34.36% while SCHD returned +31.38%. Year to date, HAPS is up 22.06% versus a gain of 24.26% for SCHD.
Over three years, HAPS compounded at +13.59% per year against +15.08% for SCHD. Across the full 3-year window we track, HAPS has the edge at +14.14% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HAPS has been the more volatile fund, with annualized monthly volatility of 19.5% 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 -27.4% for HAPS 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HAPS charges 0.61% per year while SCHD charges 0.06%. On a $10,000 position that is $61 vs $6 annually, a gap of $55 per year that compounds over a long holding period. On income, HAPS currently yields 0.47% against 3.31% for SCHD.
Holdings Overlap
HAPS and SCHD share 5 holdings out of 290 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HAPS or SCHD?
HAPS has an expense ratio of 0.61% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $55 per year of difference.
Which performed better, HAPS or SCHD?
Over the past year HAPS returned +34.36% vs +31.38% for SCHD, so HAPS leads on 1-year performance. Over the longest common window we track (3 years), HAPS annualized +14.14% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, HAPS or SCHD?
HAPS has been the more volatile fund at 19.5% annualized versus 13.6% for SCHD. Worst drawdown: HAPS -27.4% vs SCHD -33.4%.
Should I hold both HAPS and SCHD?
HAPS and SCHD have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HAPS and SCHD?
HAPS and SCHD share 5 common holdings with a 0.5% weight overlap. Combined, they hold 290 unique securities.
Which pays a higher dividend, HAPS or SCHD?
HAPS yields 0.47% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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