HEQ vs SCHD
John Hancock Hedged Equity & Income Fund vs Schwab US Dividend Equity ETF
Which is better, HEQ or SCHD?
SCHD has been ahead.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
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
| Metric | HEQ | SCHD |
|---|---|---|
| Expense Ratio | 1.16% | 0.06%Best |
| AUM | $146M | $112.1B |
| Dividend Yield | 7.71% | 3.00% |
| Holdings | 640 | 103 |
| YTD Return | +11.11% | +21.00%Best |
| 1Y Return | +15.29% | +25.08%Best |
| 3Y Return (annualized) | +15.70% | +15.72%Best |
| 5Y Return (annualized) | +6.90% | +9.37%Best |
| Volatility (annualized) | 14.7% | 13.7%Best |
| Max Drawdown | -56.1% | -33.4%Best |
| $10,000 over 5 years | $13,960 | $15,649Best |
| Fund Family | John Hancock Investment Management | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | May 26, 2011 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 28, 2026 (14.9 years).
HEQ 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 covers the 14.9 years both funds cover.
HEQ vs SCHD Performance
John Hancock Hedged Equity & Income Fund (HEQ) is an ETF from John Hancock Investment Management and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year HEQ returned +15.29% while SCHD returned +25.08%. Year to date, HEQ is up 11.11% versus a gain of 21.00% for SCHD.
Over three years, HEQ compounded at +15.70% per year against +15.72% for SCHD; over five years the annualized figures are +6.90% and +9.37% respectively. Across the full 15-year window we track, SCHD has the edge at +11.08% annualized vs +1.74%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HEQ has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 13.7% 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 -56.1% for HEQ 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEQ charges 1.16% per year while SCHD charges 0.06%. On a $10,000 position that is $116 vs $6 annually, a gap of $110 per year that compounds over a long holding period. On income, HEQ currently yields 7.71% against 3.00% for SCHD.
Holdings Overlap
At least 65.5% of SCHD's money is in holdings HEQ also owns.
Stated as a floor: for HEQ, our book for it covers 83.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
The two portfolios partly overlap.
The two holdings books were reported 153 days apart, HEQ as of Mar 31, 2026 and SCHD as of Aug 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
25 positions in common, counted across the 423 positions we hold weights for in HEQ and 100 in SCHD, against full books of 640 and 103.
Top Shared Holdings
| Stock | Weight in HEQ | Weight in SCHD | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 0.57% | 4.77% | 4.20% |
| CVXChevron Corp | 0.91% | 4.02% | 3.11% |
| AMGNAmgen Inc. | 0.12% | 4.70% | 4.58% |
| VZVerizon Communic | 0.77% | 3.97% | 3.20% |
| KOCoca Cola Co. | 0.42% | 4.17% | 3.75% |
| PGProcter & Gamble Company | 0.56% | 3.83% | 3.27% |
| HDHome Depot Inc/The | 0.17% | 3.88% | 3.71% |
| UNHUnitedhealth Group Incorporated | 0.22% | 3.82% | 3.60% |
| PEPPepsico Inc. | 0.35% | 3.64% | 3.29% |
| BMYBristol-Myers Squibb Co. | 0.41% | 3.33% | 2.92% |
65.5% of SCHD is already inside HEQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HEQ or SCHD?
HEQ has an expense ratio of 1.16% while SCHD charges 0.06%. SCHD is the cheaper option, by $110 a year on a $10,000 investment.
Which performed better, HEQ or SCHD?
Over the past year HEQ returned +15.29% vs +25.08% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), HEQ annualized +1.74% vs +11.08% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HEQ or SCHD?
HEQ has been the more volatile fund at 14.7% annualized versus 13.7% for SCHD. Worst drawdown: HEQ -56.1% vs SCHD -33.4%.
Should I hold both HEQ and SCHD?
HEQ and SCHD have a monthly-return correlation of 0.73, 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 HEQ and SCHD?
At least 65.5% of SCHD's money is in holdings HEQ also owns. Our book for HEQ is partial, so the real figure is this or higher. They hold 25 positions in common, counted across the 423 positions we hold weights for in HEQ and 100 in SCHD.
Which pays a higher dividend, HEQ or SCHD?
HEQ yields 7.71% while SCHD yields 3.00%, so HEQ currently pays the higher dividend yield.
Is SCHD better than HEQ?
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.