PFL vs SCHD
PFL vs SCHD
PIMCO Income Strategy Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | PFL | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.37% | 0.06% | |
| AUM | $386M | $103.7B | |
| Dividend Yield | 12.79% | 3.31% | |
| Holdings | 401 | 104 | |
| YTD Return | -1.06% | +24.26% | |
| 1Y Return | +2.82% | +31.38% | |
| 3Y Return (annualized) | +10.38% | +15.08% | |
| 5Y Return (annualized) | +0.95% | +9.72% | |
| Volatility (annualized) | 19.7% | 13.6% | |
| Max Drawdown | -82.2% | -33.4% | |
| Fund Family | PIMCO (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Aug 26, 2003 | Oct 20, 2011 |
PFL vs SCHD Performance
PIMCO Income Strategy Fund (PFL) is a ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PFL returned +2.82% while SCHD returned +31.38%. Year to date, PFL is down 1.06% versus a gain of 24.26% for SCHD.
Over three years, PFL compounded at +10.38% per year against +15.08% for SCHD; over five years the annualized figures are +0.95% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -1.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFL has been the more volatile fund, with annualized monthly volatility of 19.7% 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 -82.2% for PFL 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
PFL charges 1.37% per year while SCHD charges 0.06%. On a $10,000 position that is $137 vs $6 annually, a gap of $131 per year that compounds over a long holding period. On income, PFL currently yields 12.79% against 3.31% for SCHD.
Holdings Overlap
PFL and SCHD share 1 holdings out of 120 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PFL | Weight in SCHD | Difference |
|---|---|---|---|
| GVMXX | 0.06% | 0.04% | 0.02% |
Frequently Asked Questions
Which is cheaper, PFL or SCHD?
PFL has an expense ratio of 1.37% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $131 per year of difference.
Which performed better, PFL or SCHD?
Over the past year PFL returned +2.82% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PFL annualized -1.45% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, PFL or SCHD?
PFL has been the more volatile fund at 19.7% annualized versus 13.6% for SCHD. Worst drawdown: PFL -82.2% vs SCHD -33.4%.
Should I hold both PFL and SCHD?
PFL 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 PFL and SCHD?
PFL and SCHD share 1 common holdings with a 0.0% weight overlap. Combined, they hold 120 unique securities.
Which pays a higher dividend, PFL or SCHD?
PFL yields 12.79% while SCHD yields 3.31%, so PFL currently pays the higher dividend yield.
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