PCLO vs SCHD

Quick Verdict

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

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricPCLOSCHDWinner
Expense Ratio0.29%0.06%
AUM$20M$103.7B
Dividend Yield5.28%3.31%
Holdings47104
YTD Return+2.66%+25.62%
1Y Return+5.04%+32.62%
3Y Return (annualized)-+15.58%
5Y Return (annualized)-+9.63%
Volatility (annualized)0.7%13.6%
Max Drawdown-0.8%-33.4%
Fund FamilyVirtus Investment PartnersCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionNov 27, 2024Oct 20, 2011

PCLO vs SCHD Performance

Virtus Seix AAA Private Credit CLO ETF (PCLO) is a ETF from Virtus Investment Partners and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PCLO returned +5.04% while SCHD returned +32.62%. Year to date, PCLO is up 2.66% versus a gain of 25.62% for SCHD.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 0.7% for PCLO. 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 -0.8% for PCLO 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PCLO 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, PCLO currently yields 5.28% against 3.31% for SCHD.

Frequently Asked Questions

Which is cheaper, PCLO or SCHD?

PCLO has an expense ratio of 0.29% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $23 per year of difference.

Which performed better, PCLO or SCHD?

Over the past year PCLO returned +5.04% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), PCLO annualized +5.14% vs +11.47% for SCHD. Past performance does not guarantee future results.

Which is riskier, PCLO or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 0.7% for PCLO. Worst drawdown: PCLO -0.8% vs SCHD -33.4%.

Should I hold both PCLO and SCHD?

PCLO and SCHD have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, PCLO or SCHD?

PCLO yields 5.28% while SCHD yields 3.31%, so PCLO currently pays the higher dividend yield.

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