OPTZ vs SCHD

Quick Verdict

SCHD has a lower expense ratio. OPTZ delivered stronger 1-year returns. OPTZ offers more diversification with 334 holdings.

Lower Fees: SCHDHigher Returns: OPTZMore Diversified: OPTZ

Side-by-Side Comparison

MetricOPTZSCHDWinner
Expense Ratio0.25%0.06%
AUM$255M$103.7B
Dividend Yield0.42%3.31%
Holdings336104
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 FamilyOptimize FinancialCharles Schwab Asset Management
CategoryEquityEquity
InceptionApr 23, 2024Oct 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

1.5%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.

Top Shared Holdings

StockWeight in OPTZWeight in SCHDDifference
AMGN0.17%4.25%4.08%
PEP0.21%3.72%3.51%
LMT0.12%2.66%2.54%
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BXProProPro
CINFProProPro
BRProProPro
DINOProProPro
AFGProProPro
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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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