HYD vs SCHD
VanEck High Yield Muni ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HYD offers more diversification with 1,887 holdings.
Side-by-Side Comparison
| Metric | HYD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.06% | |
| AUM | $4.5B | $108.7B | |
| Dividend Yield | 4.36% | 3.13% | |
| Holdings | 1,887 | 104 | |
| YTD Return | -1.37% | +26.54% | |
| 1Y Return | +4.04% | +30.90% | |
| 3Y Return (annualized) | +3.20% | +16.29% | |
| 5Y Return (annualized) | -1.08% | +9.65% | |
| Volatility (annualized) | 63.2% | 13.6% | |
| Max Drawdown | -56.8% | -33.4% | |
| Fund Family | VanEck | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 4, 2009 | Oct 20, 2011 |
HYD vs SCHD Performance
VanEck High Yield Muni ETF (HYD) is a ETF from VanEck and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HYD returned +4.04% while SCHD returned +30.90%. Year to date, HYD is down 1.37% versus a gain of 26.54% for SCHD.
Over three years, HYD compounded at +3.20% per year against +16.29% for SCHD; over five years the annualized figures are -1.08% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +4.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HYD has been the more volatile fund, with annualized monthly volatility of 63.2% 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 -56.8% for HYD 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYD charges 0.32% per year while SCHD charges 0.06%. On a $10,000 position that is $32 vs $6 annually, a gap of $26 per year that compounds over a long holding period. On income, HYD currently yields 4.36% against 3.13% for SCHD.
Holdings Overlap
HYD and SCHD share 0 holdings out of 112 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, HYD or SCHD?
HYD has an expense ratio of 0.32% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, HYD or SCHD?
Over the past year HYD returned +4.04% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), HYD annualized +4.75% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, HYD or SCHD?
HYD has been the more volatile fund at 63.2% annualized versus 13.6% for SCHD. Worst drawdown: HYD -56.8% vs SCHD -33.4%.
Should I hold both HYD and SCHD?
HYD and SCHD have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYD and SCHD?
HYD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 112 unique securities.
Which pays a higher dividend, HYD or SCHD?
HYD yields 4.36% while SCHD yields 3.13%, so HYD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.