NPFD vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. NPFD offers more diversification with 150 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: NPFD

Side-by-Side Comparison

MetricNPFDSCHDWinner
Expense Ratio0.83%0.06%
AUM-$103.7B
Dividend Yield9.84%3.31%
Holdings189104
YTD Return+2.69%+24.26%
1Y Return+4.40%+31.38%
3Y Return (annualized)+14.64%+15.08%
5Y Return (annualized)-+9.72%
Volatility (annualized)16.4%13.6%
Max Drawdown-39.2%-33.4%
Fund FamilyNuveenCharles Schwab Asset Management
CategoryAllocation/BalancedEquity
InceptionDec 15, 2021Oct 20, 2011

NPFD vs SCHD Performance

Nuveen Variable Rate Preferred & Income Fund (NPFD) is a ETF from Nuveen and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NPFD returned +4.40% while SCHD returned +31.38%. Year to date, NPFD is up 2.69% versus a gain of 24.26% for SCHD.

Over three years, NPFD compounded at +14.64% per year against +15.08% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +2.12%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

NPFD has been the more volatile fund, with annualized monthly volatility of 16.4% 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 -39.2% for NPFD 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NPFD charges 0.83% per year while SCHD charges 0.06%. On a $10,000 position that is $83 vs $6 annually, a gap of $77 per year that compounds over a long holding period. On income, NPFD currently yields 9.84% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

NPFD and SCHD share 0 holdings out of 250 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, NPFD or SCHD?

NPFD has an expense ratio of 0.83% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $77 per year of difference.

Which performed better, NPFD or SCHD?

Over the past year NPFD returned +4.40% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), NPFD annualized +2.12% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, NPFD or SCHD?

NPFD has been the more volatile fund at 16.4% annualized versus 13.6% for SCHD. Worst drawdown: NPFD -39.2% vs SCHD -33.4%.

Should I hold both NPFD and SCHD?

NPFD and SCHD have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NPFD and SCHD?

NPFD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 250 unique securities.

Which pays a higher dividend, NPFD or SCHD?

NPFD yields 9.84% while SCHD yields 3.31%, so NPFD currently pays the higher dividend yield.

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