PBDC vs SCHD
Putnam BDC Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | PBDC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 13.49% | 0.06% | |
| AUM | $314M | $108.7B | |
| Dividend Yield | 11.60% | 3.13% | |
| Holdings | 28 | 104 | |
| YTD Return | -3.00% | +26.54% | |
| 1Y Return | -6.68% | +30.90% | |
| 3Y Return (annualized) | +7.49% | +16.29% | |
| 5Y Return (annualized) | - | +9.65% | |
| Volatility (annualized) | 14.4% | 13.6% | |
| Max Drawdown | -20.5% | -33.4% | |
| Fund Family | Putnam Investments | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 29, 2022 | Oct 20, 2011 |
PBDC vs SCHD Performance
Putnam BDC Income ETF (PBDC) is a ETF from Putnam Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PBDC returned -6.68% while SCHD returned +30.90%. Year to date, PBDC is down 3.00% versus a gain of 26.54% for SCHD.
Over three years, PBDC compounded at +7.49% per year against +16.29% for SCHD. Across the full 4-year window we track, PBDC has the edge at +13.91% annualized vs +11.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PBDC has been the more volatile fund, with annualized monthly volatility of 14.4% 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 -20.5% for PBDC 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PBDC charges 13.49% per year while SCHD charges 0.06%. On a $10,000 position that is $1349 vs $6 annually, a gap of $1343 per year that compounds over a long holding period. On income, PBDC currently yields 11.60% against 3.13% for SCHD.
Holdings Overlap
PBDC and SCHD share 0 holdings out of 123 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PBDC or SCHD?
PBDC has an expense ratio of 13.49% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $1343 per year of difference.
Which performed better, PBDC or SCHD?
Over the past year PBDC returned -6.68% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), PBDC annualized +13.91% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, PBDC or SCHD?
PBDC has been the more volatile fund at 14.4% annualized versus 13.6% for SCHD. Worst drawdown: PBDC -20.5% vs SCHD -33.4%.
Should I hold both PBDC and SCHD?
PBDC and SCHD have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PBDC and SCHD?
PBDC and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 123 unique securities.
Which pays a higher dividend, PBDC or SCHD?
PBDC yields 11.60% while SCHD yields 3.13%, so PBDC currently pays the higher dividend yield.
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