LBAY vs SCHD
Leatherback Long/Short Alternative Yield 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 | LBAY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.20% | 0.06% | |
| AUM | $18M | $108.7B | |
| Dividend Yield | 3.74% | 3.13% | |
| Holdings | 62 | 104 | |
| YTD Return | +12.25% | +26.54% | |
| 1Y Return | +10.62% | +30.90% | |
| 3Y Return (annualized) | +3.58% | +16.29% | |
| 5Y Return (annualized) | +5.55% | +9.65% | |
| Volatility (annualized) | 15.1% | 13.6% | |
| Max Drawdown | -16.0% | -33.4% | |
| Fund Family | Leatherback Asset Management | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Nov 16, 2020 | Oct 20, 2011 |
LBAY vs SCHD Performance
Leatherback Long/Short Alternative Yield ETF (LBAY) is a ETF from Leatherback Asset Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year LBAY returned +10.62% while SCHD returned +30.90%. Year to date, LBAY is up 12.25% versus a gain of 26.54% for SCHD.
Over three years, LBAY compounded at +3.58% per year against +16.29% for SCHD; over five years the annualized figures are +5.55% and +9.65% respectively. Across the full 6-year window we track, SCHD has the edge at +11.51% annualized vs +8.49%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LBAY has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -16.0% for LBAY 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LBAY charges 1.20% per year while SCHD charges 0.06%. On a $10,000 position that is $120 vs $6 annually, a gap of $114 per year that compounds over a long holding period. On income, LBAY currently yields 3.74% against 3.13% for SCHD.
Holdings Overlap
LBAY and SCHD share 6 holdings out of 152 unique holdings combined, representing a 9.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LBAY or SCHD?
LBAY has an expense ratio of 1.20% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $114 per year of difference.
Which performed better, LBAY or SCHD?
Over the past year LBAY returned +10.62% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), LBAY annualized +8.49% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, LBAY or SCHD?
LBAY has been the more volatile fund at 15.1% annualized versus 13.6% for SCHD. Worst drawdown: LBAY -16.0% vs SCHD -33.4%.
Should I hold both LBAY and SCHD?
LBAY and SCHD have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LBAY and SCHD?
LBAY and SCHD share 6 common holdings with a 9.5% weight overlap. Combined, they hold 152 unique securities.
Which pays a higher dividend, LBAY or SCHD?
LBAY yields 3.74% while SCHD yields 3.13%, so LBAY currently pays the higher dividend yield.
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