HECA vs SCHD
HECA vs SCHD
Hedgeye Capital Allocation ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | HECA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.06% | |
| AUM | $289M | $103.7B | |
| Dividend Yield | 2.04% | 3.31% | |
| Holdings | 22 | 104 | |
| YTD Return | -0.48% | +24.26% | |
| 1Y Return | +11.32% | +31.38% | |
| 3Y Return (annualized) | - | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 12.4% | 13.6% | |
| Max Drawdown | -12.8% | -33.4% | |
| Fund Family | Hedgeye Asset Management | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 30, 2025 | Oct 20, 2011 |
HECA vs SCHD Performance
Hedgeye Capital Allocation ETF (HECA) is a ETF from Hedgeye Asset Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HECA returned +11.32% while SCHD returned +31.38%. Year to date, HECA is down 0.48% versus a gain of 24.26% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.4% for HECA. 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 -12.8% for HECA 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HECA charges 1.02% per year while SCHD charges 0.06%. On a $10,000 position that is $102 vs $6 annually, a gap of $96 per year that compounds over a long holding period. On income, HECA currently yields 2.04% against 3.31% for SCHD.
Holdings Overlap
HECA and SCHD share 3 holdings out of 145 unique holdings combined, representing a 4.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HECA or SCHD?
HECA has an expense ratio of 1.02% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $96 per year of difference.
Which performed better, HECA or SCHD?
Over the past year HECA returned +11.32% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), HECA annualized +11.44% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, HECA or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.4% for HECA. Worst drawdown: HECA -12.8% vs SCHD -33.4%.
Should I hold both HECA and SCHD?
HECA and SCHD have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HECA and SCHD?
HECA and SCHD share 3 common holdings with a 4.7% weight overlap. Combined, they hold 145 unique securities.
Which pays a higher dividend, HECA or SCHD?
HECA yields 2.04% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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