LCF vs SCHD
Touchstone US Large Cap Focused 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 | LCF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.06% | |
| AUM | $66M | $103.7B | |
| Dividend Yield | 0.54% | 3.31% | |
| Holdings | 47 | 104 | |
| YTD Return | +10.93% | +25.33% | |
| 1Y Return | +18.02% | +32.31% | |
| 3Y Return (annualized) | +18.13% | +15.40% | |
| 5Y Return (annualized) | - | +9.70% | |
| Volatility (annualized) | 14.1% | 13.6% | |
| Max Drawdown | -18.3% | -33.4% | |
| Fund Family | Touchstone Investments | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jul 27, 2022 | Oct 20, 2011 |
LCF vs SCHD Performance
Touchstone US Large Cap Focused ETF (LCF) is a ETF from Touchstone Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year LCF returned +18.02% while SCHD returned +32.31%. Year to date, LCF is up 10.93% versus a gain of 25.33% for SCHD.
Over three years, LCF compounded at +18.13% per year against +15.40% for SCHD. Across the full 4-year window we track, LCF has the edge at +16.70% annualized vs +11.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LCF has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -18.3% for LCF 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LCF charges 0.56% per year while SCHD charges 0.06%. On a $10,000 position that is $56 vs $6 annually, a gap of $50 per year that compounds over a long holding period. On income, LCF currently yields 0.54% against 3.31% for SCHD.
Holdings Overlap
LCF and SCHD share 5 holdings out of 140 unique holdings combined, representing a 5.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LCF or SCHD?
LCF has an expense ratio of 0.56% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, LCF or SCHD?
Over the past year LCF returned +18.02% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), LCF annualized +16.70% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, LCF or SCHD?
LCF has been the more volatile fund at 14.1% annualized versus 13.6% for SCHD. Worst drawdown: LCF -18.3% vs SCHD -33.4%.
Should I hold both LCF and SCHD?
LCF and SCHD have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LCF and SCHD?
LCF and SCHD share 5 common holdings with a 5.3% weight overlap. Combined, they hold 140 unique securities.
Which pays a higher dividend, LCF or SCHD?
LCF yields 0.54% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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