PCQ vs SCHD
PIMCO California Municipal Income Fund 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 100 holdings.
Side-by-Side Comparison
| Metric | PCQ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.20% | 0.06% | |
| AUM | $556M | $103.7B | |
| Dividend Yield | 4.28% | 3.31% | |
| Holdings | 263 | 104 | |
| YTD Return | +3.23% | +24.26% | |
| 1Y Return | +11.52% | +31.38% | |
| 3Y Return (annualized) | +0.87% | +15.08% | |
| 5Y Return (annualized) | -10.31% | +9.72% | |
| Volatility (annualized) | 15.6% | 13.6% | |
| Max Drawdown | -60.6% | -33.4% | |
| Fund Family | PIMCO (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 29, 2001 | Oct 20, 2011 |
PCQ vs SCHD Performance
PIMCO California Municipal Income Fund (PCQ) is a ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PCQ returned +11.52% while SCHD returned +31.38%. Year to date, PCQ is up 3.23% versus a gain of 24.26% for SCHD.
Over three years, PCQ compounded at +0.87% per year against +15.08% for SCHD; over five years the annualized figures are -10.31% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -1.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PCQ has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -60.6% for PCQ 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
PCQ charges 1.20% per year while SCHD charges 0.06%. On a $10,000 position that is $120 vs $6 annually, a gap of $114 per year that compounds over a long holding period. On income, PCQ currently yields 4.28% against 3.31% for SCHD.
Holdings Overlap
PCQ and SCHD share 0 holdings out of 184 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, PCQ or SCHD?
PCQ has an expense ratio of 1.20% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $114 per year of difference.
Which performed better, PCQ or SCHD?
Over the past year PCQ returned +11.52% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PCQ annualized -1.13% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, PCQ or SCHD?
PCQ has been the more volatile fund at 15.6% annualized versus 13.6% for SCHD. Worst drawdown: PCQ -60.6% vs SCHD -33.4%.
Should I hold both PCQ and SCHD?
PCQ and SCHD have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCQ and SCHD?
PCQ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 184 unique securities.
Which pays a higher dividend, PCQ or SCHD?
PCQ yields 4.28% while SCHD yields 3.31%, so PCQ currently pays the higher dividend yield.
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