PCY vs SCHD
Invesco Emerging Markets Sovereign Debt 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 100 holdings.
Side-by-Side Comparison
| Metric | PCY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.06% | |
| AUM | $1.4B | $103.7B | |
| Dividend Yield | 5.81% | 3.31% | |
| Holdings | 104 | 104 | |
| YTD Return | +0.76% | +25.33% | |
| 1Y Return | +7.56% | +32.31% | |
| 3Y Return (annualized) | +9.66% | +15.40% | |
| 5Y Return (annualized) | +1.12% | +9.70% | |
| Volatility (annualized) | 13.6% | 13.6% | |
| Max Drawdown | -49.4% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 11, 2007 | Oct 20, 2011 |
PCY vs SCHD Performance
Invesco Emerging Markets Sovereign Debt ETF (PCY) 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 PCY returned +7.56% while SCHD returned +32.31%. Year to date, PCY is up 0.76% versus a gain of 25.33% for SCHD.
Over three years, PCY compounded at +9.66% per year against +15.40% for SCHD; over five years the annualized figures are +1.12% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +0.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PCY has been the more volatile fund, with annualized monthly volatility of 13.6% 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 -49.4% for PCY 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCY charges 0.50% per year while SCHD charges 0.06%. On a $10,000 position that is $50 vs $6 annually, a gap of $44 per year that compounds over a long holding period. On income, PCY currently yields 5.81% against 3.31% for SCHD.
Holdings Overlap
PCY and SCHD share 0 holdings out of 178 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, PCY or SCHD?
PCY has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, PCY or SCHD?
Over the past year PCY returned +7.56% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PCY annualized +0.76% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, PCY or SCHD?
PCY has been the more volatile fund at 13.6% annualized versus 13.6% for SCHD. Worst drawdown: PCY -49.4% vs SCHD -33.4%.
Should I hold both PCY and SCHD?
PCY and SCHD have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCY and SCHD?
PCY and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 178 unique securities.
Which pays a higher dividend, PCY or SCHD?
PCY yields 5.81% while SCHD yields 3.31%, so PCY currently pays the higher dividend yield.
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