PALC vs SCHD
Pacer Lunt Large Cap Multi-Factor Alternator ETF vs Schwab US Dividend Equity ETF
Which is better, PALC or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. PALC is less concentrated, with 26.7% of the fund in its ten largest positions against 41.8%.
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
| Metric | PALC | SCHD |
|---|---|---|
| Expense Ratio | 0.60% | 0.06%Best |
| AUM | $197M | $108.9B |
| Dividend Yield | 1.06% | 3.00% |
| Holdings | 361 | 206 |
| YTD Return | +4.48% | +22.89%Best |
| 1Y Return | +8.82% | +29.27%Best |
| 3Y Return (annualized) | +14.92% | +16.56%Best |
| 5Y Return (annualized) | +8.06% | +9.63%Best |
| Volatility (annualized) | 17.3% | 15.2%Best |
| Max Drawdown | -24.4% | -16.9%Best |
| $10,000 over 5 years | $14,734 | $15,836Best |
| Top 10 Weight | 26.7%Best | 41.8% |
| Fund Family | Pacer ETFs | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jun 24, 2020 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Jun 25, 2020 to Oct 12, 2026 (6.3 years).
PALC 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 6.3 years both funds cover.
PALC vs SCHD Performance
Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) is an ETF from Pacer ETFs and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year PALC returned +8.82% while SCHD returned +29.27%. Year to date, PALC is up 4.48% versus a gain of 22.89% for SCHD.
Over three years, PALC compounded at +14.92% per year against +16.56% for SCHD; over five years the annualized figures are +8.06% and +9.63% respectively. Across the full 6-year window we track, SCHD has the edge at +14.73% annualized vs +14.50%.
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 15.2% 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 -16.9% 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 0.75. 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 1.06% against 3.00% for SCHD.
Holdings Overlap
20.0% of PALC's money is in holdings SCHD also owns. 36.4% of SCHD's money is in holdings PALC also owns.
The two portfolios partly overlap.
24 positions in common, counted across the 176 positions we hold weights for in PALC and 99 in SCHD, against full books of 361 and 206.
What only one of them owns
Our book lists 74 positions for SCHD that do not appear in our book for PALC (63.6% of the fund), and 150 for PALC that do not appear in SCHD (78.5%).
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
| Stock | Weight in PALC | Weight in SCHD | Difference |
|---|---|---|---|
| UNHUnitedhealth Group Incorporated | 4.31% | 3.82% | 0.49% |
| ABTAbbott Laboratories | 1.94% | 4.44% | 2.50% |
| VZVerizon Communications Inc Vz | 2.15% | 4.12% | 1.97% |
| ADPAutomatic Data Processing, Inc. | 1.33% | 2.68% | 1.35% |
| CMCSAComcast Corp-class A Cmcsa | 1.58% | 2.25% | 0.67% |
| BXBlackstone Group Inc. Class A | 1.01% | 2.39% | 1.38% |
| TGTTARGET CORP | 1.53% | 1.77% | 0.24% |
| EOGEog Resources Inc | 0.58% | 1.96% | 1.38% |
| OKEOneok Inc. | 0.63% | 1.52% | 0.89% |
| DVNDevon Energy Corporation | 0.52% | 1.45% | 0.93% |
36.4% of SCHD is already inside PALC.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $54 a year on a $10,000 investment.
Which performed better, PALC or SCHD?
Over the past year PALC returned +8.82% vs +29.27% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), PALC annualized +14.50% vs +14.73% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PALC or SCHD?
PALC has been the more volatile fund at 17.3% annualized versus 15.2% for SCHD. Worst drawdown: PALC -24.4% vs SCHD -16.9%.
Should I hold both PALC and SCHD?
PALC and SCHD have a monthly-return correlation of 0.75, 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 PALC and SCHD?
36.4% of SCHD's money is in holdings PALC also owns. 36.4% of SCHD's is in holdings PALC also owns. They hold 24 positions in common, counted across the 176 positions we hold weights for in PALC and 99 in SCHD.
Which pays a higher dividend, PALC or SCHD?
PALC yields 1.06% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than PALC?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. PALC is less concentrated, with 26.7% 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.