PFF vs SCHD
iShares Preferred and Income Securities ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PFF offers more diversification with 464 holdings.
Side-by-Side Comparison
| Metric | PFF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.06% | |
| AUM | $13.3B | $108.7B | |
| Dividend Yield | 5.51% | 3.13% | |
| Holdings | 464 | 104 | |
| YTD Return | +1.10% | +26.54% | |
| 1Y Return | +2.98% | +30.90% | |
| 3Y Return (annualized) | +6.74% | +16.29% | |
| 5Y Return (annualized) | +1.02% | +9.65% | |
| Volatility (annualized) | 15.3% | 13.6% | |
| Max Drawdown | -70.2% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Mar 26, 2007 | Oct 20, 2011 |
PFF vs SCHD Performance
iShares Preferred and Income Securities ETF (PFF) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PFF returned +2.98% while SCHD returned +30.90%. Year to date, PFF is up 1.10% versus a gain of 26.54% for SCHD.
Over three years, PFF compounded at +6.74% per year against +16.29% for SCHD; over five years the annualized figures are +1.02% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs -0.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFF has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -70.2% for PFF 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PFF charges 0.45% per year while SCHD charges 0.06%. On a $10,000 position that is $45 vs $6 annually, a gap of $39 per year that compounds over a long holding period. On income, PFF currently yields 5.51% against 3.13% for SCHD.
Holdings Overlap
PFF and SCHD share 6 holdings out of 305 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PFF or SCHD?
PFF has an expense ratio of 0.45% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $39 per year of difference.
Which performed better, PFF or SCHD?
Over the past year PFF returned +2.98% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PFF annualized -0.84% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, PFF or SCHD?
PFF has been the more volatile fund at 15.3% annualized versus 13.6% for SCHD. Worst drawdown: PFF -70.2% vs SCHD -33.4%.
Should I hold both PFF and SCHD?
PFF and SCHD have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFF and SCHD?
PFF and SCHD share 6 common holdings with a 1.5% weight overlap. Combined, they hold 305 unique securities.
Which pays a higher dividend, PFF or SCHD?
PFF yields 5.51% while SCHD yields 3.13%, so PFF currently pays the higher dividend yield.
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