NCZ vs SCHD
Virtus Convertible & Income Fund II vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. NCZ offers more diversification with 220 holdings.
Side-by-Side Comparison
| Metric | NCZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.44% | 0.06% | |
| AUM | $309M | $112.2B | |
| Dividend Yield | 8.55% | 3.13% | |
| Holdings | 220 | 103 | |
| YTD Return | +16.76% | +27.60% | |
| 1Y Return | +24.84% | +29.63% | |
| 3Y Return (annualized) | +21.97% | +16.43% | |
| 5Y Return (annualized) | +4.56% | +10.05% | |
| Volatility (annualized) | 25.6% | 13.6% | |
| Max Drawdown | -85.6% | -33.4% | |
| Fund Family | Virtus Investment Partners | Charles Schwab Asset Management | |
| Category | Convertible | Equity | |
| Inception | Jul 31, 2003 | Oct 20, 2011 |
NCZ vs SCHD Performance
Virtus Convertible & Income Fund II (NCZ) is a ETF from Virtus Investment Partners and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NCZ returned +24.84% while SCHD returned +29.63%. Year to date, NCZ is up 16.76% versus a gain of 27.60% for SCHD.
Over three years, NCZ compounded at +21.97% per year against +16.43% for SCHD; over five years the annualized figures are +4.56% and +10.05% respectively. Across the full 15-year window we track, SCHD has the edge at +11.54% annualized vs -3.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NCZ has been the more volatile fund, with annualized monthly volatility of 25.6% 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 -85.6% for NCZ 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
NCZ charges 1.44% per year while SCHD charges 0.06%. On a $10,000 position that is $144 vs $6 annually, a gap of $138 per year that compounds over a long holding period. On income, NCZ currently yields 8.55% against 3.13% for SCHD.
Holdings Overlap
NCZ and SCHD share 0 holdings out of 198 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, NCZ or SCHD?
NCZ has an expense ratio of 1.44% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $138 per year of difference.
Which performed better, NCZ or SCHD?
Over the past year NCZ returned +24.84% vs +29.63% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), NCZ annualized -3.15% vs +11.54% for SCHD. Past performance does not guarantee future results.
Which is riskier, NCZ or SCHD?
NCZ has been the more volatile fund at 25.6% annualized versus 13.6% for SCHD. Worst drawdown: NCZ -85.6% vs SCHD -33.4%.
Should I hold both NCZ and SCHD?
NCZ 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 NCZ and SCHD?
NCZ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 198 unique securities.
Which pays a higher dividend, NCZ or SCHD?
NCZ yields 8.55% while SCHD yields 3.13%, so NCZ currently pays the higher dividend yield.
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