ICLO vs SCHD
Invesco AAA CLO Floating Rate Note 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 | ICLO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.06% | |
| AUM | $525M | $103.7B | |
| Dividend Yield | 5.02% | 3.31% | |
| Holdings | 343 | 104 | |
| YTD Return | +0.25% | +25.33% | |
| 1Y Return | +1.97% | +32.31% | |
| 3Y Return (annualized) | +5.23% | +15.40% | |
| 5Y Return (annualized) | - | +9.70% | |
| Volatility (annualized) | 1.3% | 13.6% | |
| Max Drawdown | -3.5% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 9, 2022 | Oct 20, 2011 |
ICLO vs SCHD Performance
Invesco AAA CLO Floating Rate Note ETF (ICLO) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year ICLO returned +1.97% while SCHD returned +32.31%. Year to date, ICLO is up 0.25% versus a gain of 25.33% for SCHD.
Over three years, ICLO compounded at +5.23% per year against +15.40% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.45% annualized vs +5.84%. 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 1.3% for ICLO. 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 -3.5% for ICLO 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 0.16. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ICLO charges 0.19% per year while SCHD charges 0.06%. On a $10,000 position that is $19 vs $6 annually, a gap of $13 per year that compounds over a long holding period. On income, ICLO currently yields 5.02% against 3.31% for SCHD.
Holdings Overlap
ICLO and SCHD share 0 holdings out of 120 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, ICLO or SCHD?
ICLO has an expense ratio of 0.19% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, ICLO or SCHD?
Over the past year ICLO returned +1.97% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), ICLO annualized +5.84% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, ICLO or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 1.3% for ICLO. Worst drawdown: ICLO -3.5% vs SCHD -33.4%.
Should I hold both ICLO and SCHD?
ICLO and SCHD have a monthly-return correlation of 0.16, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ICLO and SCHD?
ICLO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 120 unique securities.
Which pays a higher dividend, ICLO or SCHD?
ICLO yields 5.02% while SCHD yields 3.31%, so ICLO currently pays the higher dividend yield.
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