PBW vs SCHD

Quick Verdict

SCHD has a lower expense ratio. PBW delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: PBWMore Diversified: SCHD

Side-by-Side Comparison

MetricPBWSCHDWinner
Expense Ratio0.64%0.06%
AUM$386M$103.7B
Dividend Yield1.21%3.31%
Holdings71104
YTD Return+7.78%+25.58%
1Y Return+45.20%+31.06%
3Y Return (annualized)-1.62%+15.55%
5Y Return (annualized)-14.51%+9.61%
Volatility (annualized)35.5%13.6%
Max Drawdown-89.7%-33.4%
Fund FamilyInvesco (US)Charles Schwab Asset Management
CategoryEquityEquity
InceptionMar 3, 2005Oct 20, 2011

PBW vs SCHD Performance

Invesco WilderHill Clean Energy ETF (PBW) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PBW returned +45.20% while SCHD returned +31.06%. Year to date, PBW is up 7.78% versus a gain of 25.58% for SCHD.

Over three years, PBW compounded at -1.62% per year against +15.55% for SCHD; over five years the annualized figures are -14.51% and +9.61% respectively. Across the full 15-year window we track, SCHD has the edge at +11.46% annualized vs -3.21%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PBW has been the more volatile fund, with annualized monthly volatility of 35.5% 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 -89.7% for PBW 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PBW charges 0.64% per year while SCHD charges 0.06%. On a $10,000 position that is $64 vs $6 annually, a gap of $58 per year that compounds over a long holding period. On income, PBW currently yields 1.21% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

PBW and SCHD share 0 holdings out of 169 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, PBW or SCHD?

PBW has an expense ratio of 0.64% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $58 per year of difference.

Which performed better, PBW or SCHD?

Over the past year PBW returned +45.20% vs +31.06% for SCHD, so PBW leads on 1-year performance. Over the longest common window we track (15 years), PBW annualized -3.21% vs +11.46% for SCHD. Past performance does not guarantee future results.

Which is riskier, PBW or SCHD?

PBW has been the more volatile fund at 35.5% annualized versus 13.6% for SCHD. Worst drawdown: PBW -89.7% vs SCHD -33.4%.

Should I hold both PBW and SCHD?

PBW and SCHD have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PBW and SCHD?

PBW and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 169 unique securities.

Which pays a higher dividend, PBW or SCHD?

PBW yields 1.21% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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