PDT vs SCHD
John Hancock Premium Dividend Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns.
Side-by-Side Comparison
| Metric | PDT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 2.41% | 0.06% | |
| AUM | $690M | $103.7B | |
| Dividend Yield | 6.89% | 3.31% | |
| Holdings | 144 | 104 | |
| YTD Return | +4.82% | +26.21% | |
| 1Y Return | +2.20% | +29.99% | |
| 3Y Return (annualized) | +14.88% | +15.73% | |
| 5Y Return (annualized) | +2.06% | +9.67% | |
| Volatility (annualized) | 16.7% | 13.6% | |
| Max Drawdown | -62.6% | -33.4% | |
| Fund Family | John Hancock Investment Management | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Dec 21, 1989 | Oct 20, 2011 |
PDT vs SCHD Performance
John Hancock Premium Dividend Fund (PDT) is a ETF from John Hancock Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PDT returned +2.20% while SCHD returned +29.99%. Year to date, PDT is up 4.82% versus a gain of 26.21% for SCHD.
Over three years, PDT compounded at +14.88% per year against +15.73% for SCHD; over five years the annualized figures are +2.06% and +9.67% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs +1.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PDT has been the more volatile fund, with annualized monthly volatility of 16.7% 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 -62.6% for PDT 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PDT charges 2.41% per year while SCHD charges 0.06%. On a $10,000 position that is $241 vs $6 annually, a gap of $235 per year that compounds over a long holding period. On income, PDT currently yields 6.89% against 3.31% for SCHD.
Holdings Overlap
PDT and SCHD share 4 holdings out of 196 unique holdings combined, representing a 5.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PDT or SCHD?
PDT has an expense ratio of 2.41% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $235 per year of difference.
Which performed better, PDT or SCHD?
Over the past year PDT returned +2.20% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PDT annualized +1.91% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, PDT or SCHD?
PDT has been the more volatile fund at 16.7% annualized versus 13.6% for SCHD. Worst drawdown: PDT -62.6% vs SCHD -33.4%.
Should I hold both PDT and SCHD?
PDT and SCHD have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDT and SCHD?
PDT and SCHD share 4 common holdings with a 5.2% weight overlap. Combined, they hold 196 unique securities.
Which pays a higher dividend, PDT or SCHD?
PDT yields 6.89% while SCHD yields 3.31%, so PDT currently pays the higher dividend yield.
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