PEY vs SCHD

PEY vs SCHD

Which is better, PEY or SCHD?

Small Cap Value against Large Cap Value.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. PEY is less concentrated, with 29.6% of the fund in its ten largest positions against 41.5%.

Lower Fees: SCHDHigher Returns: SCHDLess Concentrated: PEY

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricPEYSCHD
Expense Ratio0.54%0.06%Best
AUM$1.2B$112.2B
Dividend Yield4.22%3.13%
Holdings52103
YTD Return+24.15%+27.56%Best
1Y Return+21.49%+30.29%Best
3Y Return (annualized)+12.03%+16.37%Best
5Y Return (annualized)+8.94%+10.23%Best
Volatility (annualized)14.8%13.6%Best
Max Drawdown-42.3%-33.4%Best
$10,000 over 5 years$15,344$16,274Best
Top 10 Weight29.6%Best41.5%
Fund FamilyInvesco (US)Charles Schwab Asset Management
CategoryEquityEquity
StyleSmall Cap ValueLarge Cap Value
InceptionDec 9, 2004Oct 20, 2011

Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 4, 2026 (14.9 years).

PEY vs SCHD growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.

PEY vs SCHD Performance

Invesco High Yield Equity Dividend Achievers ETF (PEY) is an ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year PEY returned +21.49% while SCHD returned +30.29%. Year to date, PEY is up 24.15% versus a gain of 27.56% for SCHD.

Over three years, PEY compounded at +12.03% per year against +16.37% for SCHD; over five years the annualized figures are +8.94% and +10.23% respectively. Across the full 15-year window we track, SCHD has the edge at +11.53% annualized vs +9.14%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PEY has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -42.3% for PEY and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PEY charges 0.54% per year while SCHD charges 0.06%. On a $10,000 position that is $54 vs $6 annually, a gap of $48 per year that compounds over a long holding period. On income, PEY currently yields 4.22% against 3.13% for SCHD.

Holdings Overlap

PEY already in SCHD39.2%
SCHD already in PEY23.3%

39.2% of PEY's money is in holdings SCHD also owns. 23.3% of SCHD's money is in holdings PEY also owns.

The two portfolios partly overlap.

18 positions in common, counted across the 51 positions we hold weights for in PEY and 100 in SCHD, against full books of 52 and 103.

What only one of them owns

Measured across the 51 and 100 positions we hold weights for.

SCHD holds 80 positions PEY does not, 76.4% of the fund.

Largest: ABT 4.70%, AMGN 4.62%, HD 4.32%, MRK 4.26%, KO 4.20%

Top Shared Holdings

StockWeight in PEYWeight in SCHDDifference
VZVerizon Communications Inc Com Usd12.09%3.84%1.75%
CVXChevron Corp.United States -Energy1.47%3.74%2.27%
BMYBristol-Myers Squibb Co.1.86%3.31%1.45%
MOAltria Group Inc.2.18%2.86%0.68%
UPSUnited Parcel Service, Inc2.32%1.95%0.37%
RHIRobert Half International Inc.4.12%0.11%4.01%
CMCSACOMCAST CORP CLASS A1.90%2.26%0.36%
NSPInsperity Inc3.95%0.05%3.90%
FLOFlowers Foods Inc3.49%0.04%3.45%
TGTTarget Corp.1.54%1.70%0.16%

39.2% of PEY is already inside SCHD.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

PEYSCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, PEY or SCHD?

PEY has an expense ratio of 0.54% while SCHD charges 0.06%. SCHD is the cheaper option, by $48 a year on a $10,000 investment.

Which performed better, PEY or SCHD?

Over the past year PEY returned +21.49% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PEY annualized +9.14% vs +11.53% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PEY or SCHD?

PEY has been the more volatile fund at 14.8% annualized versus 13.6% for SCHD. Worst drawdown: PEY -42.3% vs SCHD -33.4%.

Should I hold both PEY and SCHD?

PEY and SCHD have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between PEY and SCHD?

39.2% of PEY's money is in holdings SCHD also owns. 23.3% of SCHD's is in holdings PEY also owns. They hold 18 positions in common, counted across the 51 positions we hold weights for in PEY and 100 in SCHD.

Which pays a higher dividend, PEY or SCHD?

PEY yields 4.22% while SCHD yields 3.13%, so PEY currently pays the higher dividend yield.

Is SCHD better than PEY?

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. PEY is less concentrated, with 29.6% of the fund in its ten largest positions against 41.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.