PAPI vs SCHD
Parametric Equity Premium Income ETF vs Schwab US Dividend Equity ETF
Which is better, PAPI or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. PAPI is less concentrated, with 7.7% 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 | PAPI | SCHD |
|---|---|---|
| Expense Ratio | 0.29% | 0.06%Best |
| AUM | $473M | $112.1B |
| Dividend Yield | 7.35% | 3.00% |
| Holdings | 193 | 103 |
| YTD Return | +10.55% | +24.04%Best |
| 1Y Return | +13.79% | +27.95%Best |
| 3Y Return (annualized) | +11.10% | +15.51%Best |
| 5Y Return (annualized) | - | +9.80% |
| Volatility (annualized) | 10.2%Best | 13.1% |
| Max Drawdown | -14.3%Best | -16.1% |
| $10,000 over 2.9 years | $13,570 | $16,030Best |
| Top 10 Weight | 7.7%Best | 41.8% |
| Fund Family | Parametric | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Oct 16, 2023 | Oct 20, 2011 |
Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Oct 19, 2023 to Sep 16, 2026 (2.9 years).
PAPI 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 2.9 years both funds cover.
PAPI vs SCHD Performance
Parametric Equity Premium Income ETF (PAPI) is an ETF from Parametric and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year PAPI returned +13.79% while SCHD returned +27.95%. Year to date, PAPI is up 10.55% versus a gain of 24.04% for SCHD.
Over three years, PAPI compounded at +11.10% per year against +15.51% for SCHD.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.1% compared with 10.2% for PAPI. 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 -14.3% for PAPI 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PAPI charges 0.29% per year while SCHD charges 0.06%. On a $10,000 position that is $29 vs $6 annually, a gap of $23 per year that compounds over a long holding period. On income, PAPI currently yields 7.35% against 3.00% for SCHD.
Holdings Overlap
25.0% of PAPI's money is in holdings SCHD also owns. 74.9% of SCHD's money is in holdings PAPI also owns.
Most of SCHD is already inside PAPI. Owning both mostly buys the same companies twice.
47 positions in common, counted across the 188 positions we hold weights for in PAPI and 100 in SCHD, against full books of 193 and 103.
What only one of them owns
Our book lists 52 positions for SCHD that do not appear in our book for PAPI (25.1% of the fund), and 135 for PAPI that do not appear in SCHD (71.7%).
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 PAPI | Weight in SCHD | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 0.60% | 4.77% | 4.17% |
| ABTAbbott Laboratories | 0.54% | 4.69% | 4.15% |
| KOCoca Cola Co. | 0.55% | 4.17% | 3.62% |
| CVXChevron Corp | 0.55% | 4.02% | 3.47% |
| VZVerizon Communic | 0.55% | 3.97% | 3.42% |
| COPConocophillips Common Stock USD 0.01 | 0.58% | 3.94% | 3.36% |
| HDHome Depot Inc/The | 0.48% | 3.88% | 3.40% |
| PGProcter & Gamble Company | 0.51% | 3.83% | 3.32% |
| PEPPepsico Inc. | 0.52% | 3.64% | 3.12% |
| BMYBristol-Myers Squibb Co. | 0.57% | 3.33% | 2.76% |
74.9% of SCHD is already inside PAPI.
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, PAPI or SCHD?
PAPI has an expense ratio of 0.29% while SCHD charges 0.06%. SCHD is the cheaper option, by $23 a year on a $10,000 investment.
Which performed better, PAPI or SCHD?
Over the past year PAPI returned +13.79% vs +27.95% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAPI or SCHD?
SCHD has been the more volatile fund at 13.1% annualized versus 10.2% for PAPI. Worst drawdown: PAPI -14.3% vs SCHD -16.1%.
Should I hold both PAPI and SCHD?
PAPI and SCHD have a monthly-return correlation of 0.88, 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 PAPI and SCHD?
74.9% of SCHD's money is in holdings PAPI also owns. 74.9% of SCHD's is in holdings PAPI also owns. They hold 47 positions in common, counted across the 188 positions we hold weights for in PAPI and 100 in SCHD.
Which pays a higher dividend, PAPI or SCHD?
PAPI yields 7.35% while SCHD yields 3.00%, so PAPI currently pays the higher dividend yield.
Is SCHD better than PAPI?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. PAPI is less concentrated, with 7.7% 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.