PDEC 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

MetricPDECSCHDWinner
Expense Ratio0.79%0.06%
AUM$984M$103.7B
Dividend Yield0.00%3.31%
Holdings6104
YTD Return+7.91%+24.26%
1Y Return+15.32%+31.38%
3Y Return (annualized)+11.67%+15.08%
5Y Return (annualized)+8.85%+9.72%
Volatility (annualized)9.0%13.6%
Max Drawdown-19.3%-33.4%
Fund FamilyInnovator ETFs TrustCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionDec 1, 2019Oct 20, 2011

PDEC vs SCHD Performance

Innovator US Equity Power Buffer ETF - December (PDEC) is a ETF from Innovator ETFs Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PDEC returned +15.32% while SCHD returned +31.38%. Year to date, PDEC is up 7.91% versus a gain of 24.26% for SCHD.

Over three years, PDEC compounded at +11.67% per year against +15.08% for SCHD; over five years the annualized figures are +8.85% and +9.72% respectively. Across the full 7-year window we track, SCHD has the edge at +11.39% annualized vs +9.00%. 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 9.0% for PDEC. 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 -19.3% for PDEC 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 0.77. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PDEC charges 0.79% per year while SCHD charges 0.06%. On a $10,000 position that is $79 vs $6 annually, a gap of $73 per year that compounds over a long holding period. On income, PDEC currently yields 0.00% against 3.31% for SCHD.

Frequently Asked Questions

Which is cheaper, PDEC or SCHD?

PDEC has an expense ratio of 0.79% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $73 per year of difference.

Which performed better, PDEC or SCHD?

Over the past year PDEC returned +15.32% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), PDEC annualized +9.00% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, PDEC or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 9.0% for PDEC. Worst drawdown: PDEC -19.3% vs SCHD -33.4%.

Should I hold both PDEC and SCHD?

PDEC and SCHD have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, PDEC or SCHD?

PDEC yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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