PFLD vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PFLD offers more diversification with 230 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: PFLD

Side-by-Side Comparison

MetricPFLDSCHDWinner
Expense Ratio0.45%0.06%
AUM$413M$103.7B
Dividend Yield5.47%3.31%
Holdings324104
YTD Return+2.64%+24.26%
1Y Return+5.18%+31.38%
3Y Return (annualized)+4.30%+15.08%
5Y Return (annualized)+0.89%+9.72%
Volatility (annualized)9.1%13.6%
Max Drawdown-33.5%-33.4%
Fund FamilyAdvisors Asset Management, Inc.Charles Schwab Asset Management
CategoryAllocation/BalancedEquity
InceptionNov 19, 2019Oct 20, 2011

PFLD vs SCHD Performance

AAM Low Duration Preferred and Income Securities ETF (PFLD) is a ETF from Advisors Asset Management, Inc. and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PFLD returned +5.18% while SCHD returned +31.38%. Year to date, PFLD is up 2.64% versus a gain of 24.26% for SCHD.

Over three years, PFLD compounded at +4.30% per year against +15.08% for SCHD; over five years the annualized figures are +0.89% and +9.72% respectively. Across the full 7-year window we track, SCHD has the edge at +11.39% annualized vs +1.25%. 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 9.1% for PFLD. 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 -33.5% for PFLD 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PFLD 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, PFLD currently yields 5.47% against 3.31% for SCHD.

Holdings Overlap

0.3%overlap

PFLD and SCHD share 1 holdings out of 329 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PFLDWeight in SCHDDifference
FITB0.31%1.35%1.04%

Frequently Asked Questions

Which is cheaper, PFLD or SCHD?

PFLD 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, PFLD or SCHD?

Over the past year PFLD returned +5.18% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), PFLD annualized +1.25% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, PFLD or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 9.1% for PFLD. Worst drawdown: PFLD -33.5% vs SCHD -33.4%.

Should I hold both PFLD and SCHD?

PFLD and SCHD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PFLD and SCHD?

PFLD and SCHD share 1 common holdings with a 0.3% weight overlap. Combined, they hold 329 unique securities.

Which pays a higher dividend, PFLD or SCHD?

PFLD yields 5.47% while SCHD yields 3.31%, so PFLD currently pays the higher dividend yield.

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