KBWD vs SCHD
Invesco KBW High Dividend Yield Financial 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 104 holdings.
Side-by-Side Comparison
| Metric | KBWD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 5.39% | 0.06% | |
| AUM | $425M | $108.7B | |
| Dividend Yield | 14.38% | 3.13% | |
| Holdings | 41 | 104 | |
| YTD Return | -1.48% | +26.50% | |
| 1Y Return | +3.07% | +31.25% | |
| 3Y Return (annualized) | +5.64% | +16.34% | |
| 5Y Return (annualized) | +1.81% | +10.10% | |
| Volatility (annualized) | 21.0% | 13.6% | |
| Max Drawdown | -65.2% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 2, 2010 | Oct 20, 2011 |
KBWD vs SCHD Performance
Invesco KBW High Dividend Yield Financial ETF (KBWD) 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 KBWD returned +3.07% while SCHD returned +31.25%. Year to date, KBWD is down 1.48% versus a gain of 26.50% for SCHD.
Over three years, KBWD compounded at +5.64% per year against +16.34% for SCHD; over five years the annualized figures are +1.81% and +10.10% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs -0.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBWD has been the more volatile fund, with annualized monthly volatility of 21.0% 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 -65.2% for KBWD 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KBWD charges 5.39% per year while SCHD charges 0.06%. On a $10,000 position that is $539 vs $6 annually, a gap of $533 per year that compounds over a long holding period. On income, KBWD currently yields 14.38% against 3.13% for SCHD.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, KBWD or SCHD?
KBWD has an expense ratio of 5.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $533 per year of difference.
Which performed better, KBWD or SCHD?
Over the past year KBWD returned +3.07% vs +31.25% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), KBWD annualized -0.19% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, KBWD or SCHD?
KBWD has been the more volatile fund at 21.0% annualized versus 13.6% for SCHD. Worst drawdown: KBWD -65.2% vs SCHD -33.4%.
Should I hold both KBWD and SCHD?
KBWD and SCHD have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KBWD and SCHD?
KBWD and SCHD share 2 common holdings with a 0.1% weight overlap. Combined, they hold 137 unique securities.
Which pays a higher dividend, KBWD or SCHD?
KBWD yields 14.38% while SCHD yields 3.13%, so KBWD currently pays the higher dividend yield.
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