PEPS vs SCHD
Parametric Equity Plus ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PEPS offers more diversification with 193 holdings.
Side-by-Side Comparison
| Metric | PEPS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.06% | |
| AUM | $30M | $108.7B | |
| Dividend Yield | 0.93% | 3.13% | |
| Holdings | 193 | 104 | |
| YTD Return | +12.75% | +25.69% | |
| 1Y Return | +22.48% | +30.41% | |
| 3Y Return (annualized) | - | +16.03% | |
| 5Y Return (annualized) | - | +9.64% | |
| Volatility (annualized) | 13.3% | 13.6% | |
| Max Drawdown | -21.0% | -33.4% | |
| Fund Family | Parametric | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Nov 7, 2024 | Oct 20, 2011 |
PEPS vs SCHD Performance
Parametric Equity Plus ETF (PEPS) is a ETF from Parametric and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PEPS returned +22.48% while SCHD returned +30.41%. Year to date, PEPS is up 12.75% versus a gain of 25.69% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 13.3% for PEPS. 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 -21.0% for PEPS 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PEPS charges 0.10% per year while SCHD charges 0.06%. On a $10,000 position that is $10 vs $6 annually, a gap of $4 per year that compounds over a long holding period. On income, PEPS currently yields 0.93% against 3.13% for SCHD.
Holdings Overlap
PEPS and SCHD share 15 holdings out of 260 unique holdings combined, representing a 7.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PEPS or SCHD?
PEPS has an expense ratio of 0.10% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, PEPS or SCHD?
Over the past year PEPS returned +22.48% vs +30.41% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), PEPS annualized +18.14% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, PEPS or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.3% for PEPS. Worst drawdown: PEPS -21.0% vs SCHD -33.4%.
Should I hold both PEPS and SCHD?
PEPS and SCHD have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PEPS and SCHD?
PEPS and SCHD share 15 common holdings with a 7.4% weight overlap. Combined, they hold 260 unique securities.
Which pays a higher dividend, PEPS or SCHD?
PEPS yields 0.93% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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