PALC vs SCHD
Pacer Lunt Large Cap Multi-Factor Alternator ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PALC offers more diversification with 178 holdings.
Side-by-Side Comparison
| Metric | PALC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.06% | |
| AUM | $211M | $103.7B | |
| Dividend Yield | 1.02% | 3.31% | |
| Holdings | 181 | 104 | |
| YTD Return | +10.46% | +25.33% | |
| 1Y Return | +15.97% | +32.31% | |
| 3Y Return (annualized) | +15.92% | +15.40% | |
| 5Y Return (annualized) | +8.88% | +9.70% | |
| Volatility (annualized) | 17.3% | 13.6% | |
| Max Drawdown | -24.4% | -33.4% | |
| Fund Family | Pacer ETFs | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 24, 2020 | Oct 20, 2011 |
PALC vs SCHD Performance
Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) is a ETF from Pacer ETFs and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PALC returned +15.97% while SCHD returned +32.31%. Year to date, PALC is up 10.46% versus a gain of 25.33% for SCHD.
Over three years, PALC compounded at +15.92% per year against +15.40% for SCHD; over five years the annualized figures are +8.88% and +9.70% respectively. Across the full 6-year window we track, PALC has the edge at +15.99% annualized vs +11.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PALC has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -24.4% for PALC 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PALC charges 0.60% per year while SCHD charges 0.06%. On a $10,000 position that is $60 vs $6 annually, a gap of $54 per year that compounds over a long holding period. On income, PALC currently yields 1.02% against 3.31% for SCHD.
Holdings Overlap
PALC and SCHD share 17 holdings out of 261 unique holdings combined, representing a 6.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PALC or SCHD?
PALC has an expense ratio of 0.60% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, PALC or SCHD?
Over the past year PALC returned +15.97% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), PALC annualized +15.99% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, PALC or SCHD?
PALC has been the more volatile fund at 17.3% annualized versus 13.6% for SCHD. Worst drawdown: PALC -24.4% vs SCHD -33.4%.
Should I hold both PALC and SCHD?
PALC and SCHD have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PALC and SCHD?
PALC and SCHD share 17 common holdings with a 6.8% weight overlap. Combined, they hold 261 unique securities.
Which pays a higher dividend, PALC or SCHD?
PALC yields 1.02% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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