PCEF vs SCHD
Invesco CEF Income Composite ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PCEF offers more diversification with 107 holdings.
Side-by-Side Comparison
| Metric | PCEF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 2.71% | 0.06% | |
| AUM | $796M | $103.7B | |
| Dividend Yield | 7.61% | 3.31% | |
| Holdings | 110 | 104 | |
| YTD Return | +7.64% | +25.33% | |
| 1Y Return | +11.67% | +32.31% | |
| 3Y Return (annualized) | +13.26% | +15.40% | |
| 5Y Return (annualized) | +4.89% | +9.70% | |
| Volatility (annualized) | 11.6% | 13.6% | |
| Max Drawdown | -46.0% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 19, 2010 | Oct 20, 2011 |
PCEF vs SCHD Performance
Invesco CEF Income Composite ETF (PCEF) 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 PCEF returned +11.67% while SCHD returned +32.31%. Year to date, PCEF is up 7.64% versus a gain of 25.33% for SCHD.
Over three years, PCEF compounded at +13.26% per year against +15.40% for SCHD; over five years the annualized figures are +4.89% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +1.52%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 11.6% for PCEF. 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 -46.0% for PCEF 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PCEF charges 2.71% per year while SCHD charges 0.06%. On a $10,000 position that is $271 vs $6 annually, a gap of $265 per year that compounds over a long holding period. On income, PCEF currently yields 7.61% against 3.31% for SCHD.
Holdings Overlap
PCEF and SCHD share 0 holdings out of 207 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, PCEF or SCHD?
PCEF has an expense ratio of 2.71% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $265 per year of difference.
Which performed better, PCEF or SCHD?
Over the past year PCEF returned +11.67% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PCEF annualized +1.52% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, PCEF or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 11.6% for PCEF. Worst drawdown: PCEF -46.0% vs SCHD -33.4%.
Should I hold both PCEF and SCHD?
PCEF and SCHD have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCEF and SCHD?
PCEF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 207 unique securities.
Which pays a higher dividend, PCEF or SCHD?
PCEF yields 7.61% while SCHD yields 3.31%, so PCEF currently pays the higher dividend yield.
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