NCLO vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricNCLOSCHDWinner
Expense Ratio0.26%0.06%
AUM$148M$103.7B
Dividend Yield5.77%3.31%
Holdings99104
YTD Return+2.81%+25.62%
1Y Return+5.36%+32.62%
3Y Return (annualized)-+15.58%
5Y Return (annualized)-+9.63%
Volatility (annualized)1.2%13.6%
Max Drawdown-3.0%-33.4%
Fund FamilyNuveenCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionDec 10, 2024Oct 20, 2011

NCLO vs SCHD Performance

Nuveen AA-BBB CLO ETF (NCLO) is a ETF from Nuveen and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NCLO returned +5.36% while SCHD returned +32.62%. Year to date, NCLO is up 2.81% versus a gain of 25.62% for SCHD.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 1.2% for NCLO. 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 -3.0% for NCLO 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

NCLO charges 0.26% per year while SCHD charges 0.06%. On a $10,000 position that is $26 vs $6 annually, a gap of $20 per year that compounds over a long holding period. On income, NCLO currently yields 5.77% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

NCLO and SCHD share 1 holdings out of 102 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in NCLOWeight in SCHDDifference
GVMXX0.03%0.04%0.01%

Frequently Asked Questions

Which is cheaper, NCLO or SCHD?

NCLO has an expense ratio of 0.26% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $20 per year of difference.

Which performed better, NCLO or SCHD?

Over the past year NCLO returned +5.36% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), NCLO annualized +5.27% vs +11.47% for SCHD. Past performance does not guarantee future results.

Which is riskier, NCLO or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 1.2% for NCLO. Worst drawdown: NCLO -3.0% vs SCHD -33.4%.

Should I hold both NCLO and SCHD?

NCLO 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 NCLO and SCHD?

NCLO and SCHD share 1 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.

Which pays a higher dividend, NCLO or SCHD?

NCLO yields 5.77% while SCHD yields 3.31%, so NCLO currently pays the higher dividend yield.

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