HEGD vs SCHD
Swan Hedged Equity US Large Cap 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 | HEGD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.87% | 0.06% | |
| AUM | $707M | $103.7B | |
| Dividend Yield | 0.34% | 3.31% | |
| Holdings | 13 | 104 | |
| YTD Return | +7.95% | +25.33% | |
| 1Y Return | +14.22% | +32.31% | |
| 3Y Return (annualized) | +13.98% | +15.40% | |
| 5Y Return (annualized) | +8.46% | +9.70% | |
| Volatility (annualized) | 8.7% | 13.6% | |
| Max Drawdown | -14.6% | -33.4% | |
| Fund Family | Swan Capital Management | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 22, 2020 | Oct 20, 2011 |
HEGD vs SCHD Performance
Swan Hedged Equity US Large Cap ETF (HEGD) is a ETF from Swan Capital Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HEGD returned +14.22% while SCHD returned +32.31%. Year to date, HEGD is up 7.95% versus a gain of 25.33% for SCHD.
Over three years, HEGD compounded at +13.98% per year against +15.40% for SCHD; over five years the annualized figures are +8.46% and +9.70% respectively. Across the full 6-year window we track, SCHD has the edge at +11.45% annualized vs +9.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 8.7% for HEGD. 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 -14.6% for HEGD 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEGD charges 0.87% per year while SCHD charges 0.06%. On a $10,000 position that is $87 vs $6 annually, a gap of $81 per year that compounds over a long holding period. On income, HEGD currently yields 0.34% against 3.31% for SCHD.
Holdings Overlap
HEGD and SCHD share 0 holdings out of 102 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, HEGD or SCHD?
HEGD has an expense ratio of 0.87% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $81 per year of difference.
Which performed better, HEGD or SCHD?
Over the past year HEGD returned +14.22% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), HEGD annualized +9.75% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, HEGD or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.7% for HEGD. Worst drawdown: HEGD -14.6% vs SCHD -33.4%.
Should I hold both HEGD and SCHD?
HEGD and SCHD have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEGD and SCHD?
HEGD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, HEGD or SCHD?
HEGD yields 0.34% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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