NPFI vs SCHD
Nuveen Preferred and Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. NPFI offers more diversification with 118 holdings.
Side-by-Side Comparison
| Metric | NPFI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.06% | |
| AUM | $171M | $103.7B | |
| Dividend Yield | 6.38% | 3.31% | |
| Holdings | 154 | 104 | |
| YTD Return | +1.71% | +25.33% | |
| 1Y Return | +5.11% | +32.31% | |
| 3Y Return (annualized) | - | +15.40% | |
| 5Y Return (annualized) | - | +9.70% | |
| Volatility (annualized) | 3.3% | 13.6% | |
| Max Drawdown | -3.2% | -33.4% | |
| Fund Family | Nuveen | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Mar 5, 2024 | Oct 20, 2011 |
NPFI vs SCHD Performance
Nuveen Preferred and Income ETF (NPFI) is a ETF from Nuveen and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NPFI returned +5.11% while SCHD returned +32.31%. Year to date, NPFI is up 1.71% versus a gain of 25.33% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 3.3% for NPFI. 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 -3.2% for NPFI 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NPFI charges 0.56% per year while SCHD charges 0.06%. On a $10,000 position that is $56 vs $6 annually, a gap of $50 per year that compounds over a long holding period. On income, NPFI currently yields 6.38% against 3.31% for SCHD.
Holdings Overlap
NPFI and SCHD share 0 holdings out of 218 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, NPFI or SCHD?
NPFI has an expense ratio of 0.56% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, NPFI or SCHD?
Over the past year NPFI returned +5.11% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), NPFI annualized +7.52% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, NPFI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 3.3% for NPFI. Worst drawdown: NPFI -3.2% vs SCHD -33.4%.
Should I hold both NPFI and SCHD?
NPFI and SCHD have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NPFI and SCHD?
NPFI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 218 unique securities.
Which pays a higher dividend, NPFI or SCHD?
NPFI yields 6.38% while SCHD yields 3.31%, so NPFI currently pays the higher dividend yield.
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