PDN vs SCHD
Invesco FTSE RAFI Developed Markets ex-US Small-Mid ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PDN offers more diversification with 1557 holdings.
Side-by-Side Comparison
| Metric | PDN | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.06% | |
| AUM | $350M | $103.7B | |
| Dividend Yield | 3.29% | 3.31% | |
| Holdings | 1,599 | 104 | |
| YTD Return | +13.09% | +24.26% | |
| 1Y Return | +22.51% | +31.38% | |
| 3Y Return (annualized) | +18.06% | +15.08% | |
| 5Y Return (annualized) | +7.36% | +9.72% | |
| Volatility (annualized) | 18.2% | 13.6% | |
| Max Drawdown | -60.1% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 27, 2007 | Oct 20, 2011 |
PDN vs SCHD Performance
Invesco FTSE RAFI Developed Markets ex-US Small-Mid ETF (PDN) 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 PDN returned +22.51% while SCHD returned +31.38%. Year to date, PDN is up 13.09% versus a gain of 24.26% for SCHD.
Over three years, PDN compounded at +18.06% per year against +15.08% for SCHD; over five years the annualized figures are +7.36% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +4.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PDN has been the more volatile fund, with annualized monthly volatility of 18.2% 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 -60.1% for PDN 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
PDN charges 0.47% per year while SCHD charges 0.06%. On a $10,000 position that is $47 vs $6 annually, a gap of $41 per year that compounds over a long holding period. On income, PDN currently yields 3.29% against 3.31% for SCHD.
Holdings Overlap
PDN and SCHD share 0 holdings out of 1657 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, PDN or SCHD?
PDN has an expense ratio of 0.47% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, PDN or SCHD?
Over the past year PDN returned +22.51% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PDN annualized +4.19% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, PDN or SCHD?
PDN has been the more volatile fund at 18.2% annualized versus 13.6% for SCHD. Worst drawdown: PDN -60.1% vs SCHD -33.4%.
Should I hold both PDN and SCHD?
PDN and SCHD have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDN and SCHD?
PDN and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1657 unique securities.
Which pays a higher dividend, PDN or SCHD?
PDN yields 3.29% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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