HGLB vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricHGLBSCHDWinner
Expense Ratio2.67%0.06%
AUM$279M$103.7B
Dividend Yield8.52%3.31%
Holdings69104
YTD Return-9.23%+25.62%
1Y Return+1.65%+32.62%
3Y Return (annualized)+9.12%+15.58%
5Y Return (annualized)+6.50%+9.63%
Volatility (annualized)31.6%13.6%
Max Drawdown-74.1%-33.4%
Fund FamilyNexPointCharles Schwab Asset Management
CategoryEquityEquity
InceptionJan 5, 1998Oct 20, 2011

HGLB vs SCHD Performance

Highland Global Allocation Fund (HGLB) is a ETF from NexPoint and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HGLB returned +1.65% while SCHD returned +32.62%. Year to date, HGLB is down 9.23% versus a gain of 25.62% for SCHD.

Over three years, HGLB compounded at +9.12% per year against +15.58% for SCHD; over five years the annualized figures are +6.50% and +9.63% respectively. Across the full 8-year window we track, SCHD has the edge at +11.47% annualized vs -0.88%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HGLB has been the more volatile fund, with annualized monthly volatility of 31.6% 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 -74.1% for HGLB 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HGLB charges 2.67% per year while SCHD charges 0.06%. On a $10,000 position that is $267 vs $6 annually, a gap of $261 per year that compounds over a long holding period. On income, HGLB currently yields 8.52% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

HGLB and SCHD share 0 holdings out of 152 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, HGLB or SCHD?

HGLB has an expense ratio of 2.67% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $261 per year of difference.

Which performed better, HGLB or SCHD?

Over the past year HGLB returned +1.65% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), HGLB annualized -0.88% vs +11.47% for SCHD. Past performance does not guarantee future results.

Which is riskier, HGLB or SCHD?

HGLB has been the more volatile fund at 31.6% annualized versus 13.6% for SCHD. Worst drawdown: HGLB -74.1% vs SCHD -33.4%.

Should I hold both HGLB and SCHD?

HGLB and SCHD have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HGLB and SCHD?

HGLB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 152 unique securities.

Which pays a higher dividend, HGLB or SCHD?

HGLB yields 8.52% while SCHD yields 3.31%, so HGLB currently pays the higher dividend yield.

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