OPTZ vs SCHD
Optimize Strategy Index ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. OPTZ delivered stronger 1-year returns. OPTZ offers more diversification with 334 holdings.
Side-by-Side Comparison
| Metric | OPTZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.06% | |
| AUM | $255M | $103.7B | |
| Dividend Yield | 0.42% | 3.31% | |
| Holdings | 336 | 104 | |
| YTD Return | +27.31% | +25.33% | |
| 1Y Return | +43.69% | +32.31% | |
| 3Y Return (annualized) | - | +15.40% | |
| 5Y Return (annualized) | - | +9.70% | |
| Volatility (annualized) | 19.3% | 13.6% | |
| Max Drawdown | -25.5% | -33.4% | |
| Fund Family | Optimize Financial | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 23, 2024 | Oct 20, 2011 |
OPTZ vs SCHD Performance
Optimize Strategy Index ETF (OPTZ) is a ETF from Optimize Financial and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year OPTZ returned +43.69% while SCHD returned +32.31%. Year to date, OPTZ is up 27.31% versus a gain of 25.33% for SCHD.
Risk: Volatility and Drawdowns
OPTZ has been the more volatile fund, with annualized monthly volatility of 19.3% 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 -25.5% for OPTZ 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
OPTZ charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, OPTZ currently yields 0.42% against 3.31% for SCHD.
Holdings Overlap
OPTZ and SCHD share 9 holdings out of 425 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, OPTZ or SCHD?
OPTZ has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, OPTZ or SCHD?
Over the past year OPTZ returned +43.69% vs +32.31% for SCHD, so OPTZ leads on 1-year performance. Over the longest common window we track (2 years), OPTZ annualized +30.58% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, OPTZ or SCHD?
OPTZ has been the more volatile fund at 19.3% annualized versus 13.6% for SCHD. Worst drawdown: OPTZ -25.5% vs SCHD -33.4%.
Should I hold both OPTZ and SCHD?
OPTZ and SCHD have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between OPTZ and SCHD?
OPTZ and SCHD share 9 common holdings with a 1.5% weight overlap. Combined, they hold 425 unique securities.
Which pays a higher dividend, OPTZ or SCHD?
OPTZ yields 0.42% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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