LONZ vs SCHD
PIMCO Senior Loan Active Exchange-Traded Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. LONZ offers more diversification with 138 holdings.
Side-by-Side Comparison
| Metric | LONZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.06% | |
| AUM | $580M | $103.7B | |
| Dividend Yield | 8.73% | 3.31% | |
| Holdings | 307 | 104 | |
| YTD Return | +2.07% | +25.33% | |
| 1Y Return | +5.10% | +32.31% | |
| 3Y Return (annualized) | +7.46% | +15.40% | |
| 5Y Return (annualized) | - | +9.70% | |
| Volatility (annualized) | 3.1% | 13.6% | |
| Max Drawdown | -4.2% | -33.4% | |
| Fund Family | PIMCO (US) | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Jun 8, 2022 | Oct 20, 2011 |
LONZ vs SCHD Performance
PIMCO Senior Loan Active Exchange-Traded Fund (LONZ) is a ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year LONZ returned +5.10% while SCHD returned +32.31%. Year to date, LONZ is up 2.07% versus a gain of 25.33% for SCHD.
Over three years, LONZ compounded at +7.46% per year against +15.40% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.45% annualized vs +7.41%. 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 3.1% for LONZ. 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 -4.2% for LONZ 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LONZ charges 0.63% per year while SCHD charges 0.06%. On a $10,000 position that is $63 vs $6 annually, a gap of $57 per year that compounds over a long holding period. On income, LONZ currently yields 8.73% against 3.31% for SCHD.
Holdings Overlap
LONZ and SCHD share 0 holdings out of 238 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, LONZ or SCHD?
LONZ has an expense ratio of 0.63% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, LONZ or SCHD?
Over the past year LONZ returned +5.10% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), LONZ annualized +7.41% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, LONZ or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 3.1% for LONZ. Worst drawdown: LONZ -4.2% vs SCHD -33.4%.
Should I hold both LONZ and SCHD?
LONZ and SCHD have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LONZ and SCHD?
LONZ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 238 unique securities.
Which pays a higher dividend, LONZ or SCHD?
LONZ yields 8.73% while SCHD yields 3.31%, so LONZ currently pays the higher dividend yield.
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