OPTZ vs SCHD

OPTZ vs SCHD

Which is better, OPTZ or SCHD?

OPTZ has been ahead.

SCHD has a lower expense ratio. OPTZ led over 1Y and the full window. OPTZ is less concentrated, with 21.9% of the fund in its ten largest positions against 41.8%.

Lower Fees: SCHDHigher Returns: OPTZLess Concentrated: OPTZ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricOPTZSCHD
Expense Ratio0.25%0.06%Best
AUM$265M$112.1B
Dividend Yield0.46%3.00%
Holdings339103
YTD Return+26.62%Best+23.68%
1Y Return+30.57%Best+28.36%
3Y Return (annualized)-+16.20%
5Y Return (annualized)-+10.07%
Volatility (annualized)19.0%13.0%Best
Max Drawdown-25.5%-16.1%Best
$10,000 over 2.4 years$18,289Best$14,120
Top 10 Weight21.9%Best41.8%
Fund FamilyOptimize FinancialCharles Schwab Asset Management
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionApr 23, 2024Oct 20, 2011

Volatility and max drawdown, and the $10,000 over 2.4 years row, are measured over the window both funds cover: Apr 23, 2024 to Sep 22, 2026 (2.4 years).

OPTZ vs SCHD growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.4 years both funds cover.

OPTZ vs SCHD Performance

Optimize Strategy Index ETF (OPTZ) is an ETF from Optimize Financial and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year OPTZ returned +30.57% while SCHD returned +28.36%. Year to date, OPTZ is up 26.62% versus a gain of 23.68% for SCHD.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

OPTZ has been the more volatile fund, with annualized monthly volatility of 19.0% compared with 13.0% 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 -16.1% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.30. They move together some of the time, and apart the rest.

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 0.46% against 3.00% for SCHD.

Holdings Overlap

OPTZ already in SCHD1.6%
SCHD already in OPTZ18.3%

1.6% of OPTZ's money is in holdings SCHD also owns. 18.3% of SCHD's money is in holdings OPTZ also owns.

SCHD and OPTZ share little of their money.

9 positions in common, counted across the 336 positions we hold weights for in OPTZ and 100 in SCHD, against full books of 339 and 103.

What only one of them owns

Our book lists 90 positions for SCHD that do not appear in our book for OPTZ (81.7% of the fund), and 318 for OPTZ that do not appear in SCHD (93.4%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in OPTZWeight in SCHDDifference
AMGNAmgen Inc.0.20%4.70%4.50%
PEPPepsico Inc.0.21%3.64%3.43%
ADPAutomatic Data Processing, Inc.0.17%2.79%2.62%
LMTLockheed Martin Corp0.11%2.78%2.67%
BXBlackstone Group Inc. Class A0.23%2.59%2.36%
CINFCincinnati Financial Corp.0.19%0.64%0.45%
BRBroadridge Financial Solutions, Inc.0.16%0.51%0.35%
DINOHF Sinclair Corp0.13%0.38%0.25%
AFGAmerican Financial Group Inc/Oh0.20%0.24%0.04%

You are not choosing between two funds in isolation.

Whichever of OPTZ and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

OPTZSCHD

Free for up to 10 holdings. No account needed.

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, by $19 a year on a $10,000 investment.

Which performed better, OPTZ or SCHD?

Over the past year OPTZ returned +30.57% vs +28.36% for SCHD, so OPTZ leads on 1-year performance. Over the longest common window we track (2 years), OPTZ annualized +28.60% vs +15.46% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, OPTZ or SCHD?

OPTZ has been the more volatile fund at 19.0% annualized versus 13.0% for SCHD. Worst drawdown: OPTZ -25.5% vs SCHD -16.1%.

Should I hold both OPTZ and SCHD?

OPTZ and SCHD have a monthly-return correlation of 0.30, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between OPTZ and SCHD?

18.3% of SCHD's money is in holdings OPTZ also owns. 18.3% of SCHD's is in holdings OPTZ also owns. They hold 9 positions in common, counted across the 336 positions we hold weights for in OPTZ and 100 in SCHD.

Which pays a higher dividend, OPTZ or SCHD?

OPTZ yields 0.46% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.

Is SCHD better than OPTZ?

SCHD has a lower expense ratio. OPTZ led over 1Y and the full window. OPTZ is less concentrated, with 21.9% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.