PFF vs SCHD
iShares Preferred and Income Securities ETF vs Schwab US Dividend Equity ETF
Which is better, PFF or SCHD?
Preferred Stock against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
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
| Metric | PFF | SCHD |
|---|---|---|
| Expense Ratio | 0.45% | 0.06%Best |
| AUM | $13.1B | $112.2B |
| Dividend Yield | 5.51% | 3.13% |
| Holdings | 464 | 103 |
| YTD Return | +0.48% | +27.56%Best |
| 1Y Return | +1.63% | +30.29%Best |
| 3Y Return (annualized) | +6.39% | +16.37%Best |
| 5Y Return (annualized) | +0.88% | +10.23%Best |
| Volatility (annualized) | 8.9%Best | 13.6% |
| Max Drawdown | -38.5% | -33.4%Best |
| $10,000 over 5 years | $10,448 | $16,274Best |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Value |
| Inception | Mar 26, 2007 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 4, 2026 (14.9 years).
PFF 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
PFF vs SCHD Performance
iShares Preferred and Income Securities ETF (PFF) is an ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year PFF returned +1.63% while SCHD returned +30.29%. Year to date, PFF is up 0.48% versus a gain of 27.56% for SCHD.
Over three years, PFF compounded at +6.39% per year against +16.37% for SCHD; over five years the annualized figures are +0.88% and +10.23% respectively. Across the full 15-year window we track, SCHD has the edge at +11.53% annualized vs +1.02%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 8.9% for PFF. 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 -38.5% for PFF 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 0.62. They move together some of the time, and apart the rest.
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
At least 4.4% of SCHD's money is in holdings PFF also owns.
Stated as a floor: for PFF, our book for it covers 59.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SCHD and PFF share little of their money.
6 positions in common, counted across the 211 positions we hold weights for in PFF and 100 in SCHD, against full books of 464 and 103.
You are not choosing between two funds in isolation.
Whichever of PFF and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $39 a year on a $10,000 investment.
Which performed better, PFF or SCHD?
Over the past year PFF returned +1.63% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PFF annualized +1.02% vs +11.53% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PFF or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.9% for PFF. Worst drawdown: PFF -38.5% vs SCHD -33.4%.
Should I hold both PFF and SCHD?
PFF and SCHD have a monthly-return correlation of 0.62, 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 PFF and SCHD?
At least 4.4% of SCHD's money is in holdings PFF also owns. Our book for PFF is partial, so the real figure is this or higher. They hold 6 positions in common, counted across the 211 positions we hold weights for in PFF and 100 in SCHD.
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.
Is SCHD better than PFF?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.