HFXI vs SCHQ

HFXI vs SCHQ
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Quick Verdict

SCHQ has a lower expense ratio. HFXI delivered stronger 1-year returns. HFXI offers more diversification with 876 holdings.

Lower Fees: SCHQHigher Returns: HFXIMore Diversified: HFXI

Side-by-Side Comparison

MetricHFXISCHQWinner
Expense Ratio0.20%0.03%
AUM$2.1B$803M
Dividend Yield3.39%4.91%
Holdings876100
YTD Return+17.30%-2.72%
1Y Return+29.54%+0.09%
3Y Return (annualized)+21.69%+0.91%
5Y Return (annualized)+12.45%-7.20%
Volatility (annualized)13.8%13.5%
Max Drawdown-34.2%-46.7%
Fund FamilyINDEXIQ ETF TRUSTCharles Schwab Asset Management
CategoryEquityFixed Income
InceptionJul 22, 2015Oct 10, 2019

HFXI vs SCHQ Performance

NYLI FTSE International Equity Currency Neutral ETF (HFXI) is a ETF from INDEXIQ ETF TRUST and Schwab Long-Term US Treasury ETF (SCHQ) is a ETF from Charles Schwab Asset Management. Over the past year HFXI returned +29.54% while SCHQ returned +0.09%. Year to date, HFXI is up 17.30% versus a loss of 2.72% for SCHQ.

Over three years, HFXI compounded at +21.69% per year against +0.91% for SCHQ; over five years the annualized figures are +12.45% and -7.20% respectively. Across the full 7-year window we track, HFXI has the edge at +7.92% annualized vs -4.41%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HFXI has been the more volatile fund, with annualized monthly volatility of 13.8% compared with 13.5% for SCHQ. 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 -34.2% for HFXI and -46.7% for SCHQ. 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HFXI charges 0.20% per year while SCHQ charges 0.03%. On a $10,000 position that is $20 vs $3 annually, a gap of $17 per year that compounds over a long holding period. On income, HFXI currently yields 3.39% against 4.91% for SCHQ.

Holdings Overlap

0.0%overlap

HFXI and SCHQ share 0 holdings out of 834 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, HFXI or SCHQ?

HFXI has an expense ratio of 0.20% while SCHQ charges 0.03%. SCHQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, HFXI or SCHQ?

Over the past year HFXI returned +29.54% vs +0.09% for SCHQ, so HFXI leads on 1-year performance. Over the longest common window we track (7 years), HFXI annualized +7.92% vs -4.41% for SCHQ. Past performance does not guarantee future results.

Which is riskier, HFXI or SCHQ?

HFXI has been the more volatile fund at 13.8% annualized versus 13.5% for SCHQ. Worst drawdown: HFXI -34.2% vs SCHQ -46.7%.

Should I hold both HFXI and SCHQ?

HFXI and SCHQ have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HFXI and SCHQ?

HFXI and SCHQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 834 unique securities.

Which pays a higher dividend, HFXI or SCHQ?

HFXI yields 3.39% while SCHQ yields 4.91%, so SCHQ currently pays the higher dividend yield.

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