NFJ vs SCHD
Virtus Dividend, Interest & Premium Strategy Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. NFJ delivered stronger 1-year returns. NFJ offers more diversification with 153 holdings.
Side-by-Side Comparison
| Metric | NFJ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.06% | |
| AUM | $1.5B | $103.7B | |
| Dividend Yield | 7.46% | 3.31% | |
| Holdings | 182 | 104 | |
| YTD Return | +25.54% | +25.62% | |
| 1Y Return | +35.61% | +32.62% | |
| 3Y Return (annualized) | +17.68% | +15.58% | |
| 5Y Return (annualized) | +8.92% | +9.63% | |
| Volatility (annualized) | 17.5% | 13.6% | |
| Max Drawdown | -70.3% | -33.4% | |
| Fund Family | Virtus Investment Partners | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 28, 2005 | Oct 20, 2011 |
NFJ vs SCHD Performance
Virtus Dividend, Interest & Premium Strategy Fund (NFJ) 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 NFJ returned +35.61% while SCHD returned +32.62%. Year to date, NFJ is up 25.54% versus a gain of 25.62% for SCHD.
Over three years, NFJ compounded at +17.68% per year against +15.58% for SCHD; over five years the annualized figures are +8.92% and +9.63% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs -0.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NFJ has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -70.3% for NFJ 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NFJ charges 0.96% per year while SCHD charges 0.06%. On a $10,000 position that is $96 vs $6 annually, a gap of $90 per year that compounds over a long holding period. On income, NFJ currently yields 7.46% against 3.31% for SCHD.
Holdings Overlap
NFJ and SCHD share 8 holdings out of 245 unique holdings combined, representing a 4.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NFJ or SCHD?
NFJ has an expense ratio of 0.96% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $90 per year of difference.
Which performed better, NFJ or SCHD?
Over the past year NFJ returned +35.61% vs +32.62% for SCHD, so NFJ leads on 1-year performance. Over the longest common window we track (15 years), NFJ annualized -0.11% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, NFJ or SCHD?
NFJ has been the more volatile fund at 17.5% annualized versus 13.6% for SCHD. Worst drawdown: NFJ -70.3% vs SCHD -33.4%.
Should I hold both NFJ and SCHD?
NFJ and SCHD have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NFJ and SCHD?
NFJ and SCHD share 8 common holdings with a 4.9% weight overlap. Combined, they hold 245 unique securities.
Which pays a higher dividend, NFJ or SCHD?
NFJ yields 7.46% while SCHD yields 3.31%, so NFJ currently pays the higher dividend yield.
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