PFN vs SCHD
PIMCO Income Strategy Fund II 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 | PFN | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.29% | 0.06% | |
| AUM | $686M | $103.7B | |
| Dividend Yield | 12.41% | 3.31% | |
| Holdings | 513 | 104 | |
| YTD Return | +2.44% | +25.62% | |
| 1Y Return | +6.56% | +32.62% | |
| 3Y Return (annualized) | +12.81% | +15.58% | |
| 5Y Return (annualized) | +2.14% | +9.63% | |
| Volatility (annualized) | 18.7% | 13.6% | |
| Max Drawdown | -83.4% | -33.4% | |
| Fund Family | PIMCO (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 29, 2004 | Oct 20, 2011 |
PFN vs SCHD Performance
PIMCO Income Strategy Fund II (PFN) 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 PFN returned +6.56% while SCHD returned +32.62%. Year to date, PFN is up 2.44% versus a gain of 25.62% for SCHD.
Over three years, PFN compounded at +12.81% per year against +15.58% for SCHD; over five years the annualized figures are +2.14% and +9.63% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs -1.89%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFN has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -83.4% for PFN 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PFN charges 1.29% per year while SCHD charges 0.06%. On a $10,000 position that is $129 vs $6 annually, a gap of $123 per year that compounds over a long holding period. On income, PFN currently yields 12.41% against 3.31% for SCHD.
Holdings Overlap
PFN and SCHD share 1 holdings out of 122 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 PFN | Weight in SCHD | Difference |
|---|---|---|---|
| GVMXX | 0.12% | 0.04% | 0.08% |
Frequently Asked Questions
Which is cheaper, PFN or SCHD?
PFN has an expense ratio of 1.29% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $123 per year of difference.
Which performed better, PFN or SCHD?
Over the past year PFN returned +6.56% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PFN annualized -1.89% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, PFN or SCHD?
PFN has been the more volatile fund at 18.7% annualized versus 13.6% for SCHD. Worst drawdown: PFN -83.4% vs SCHD -33.4%.
Should I hold both PFN and SCHD?
PFN and SCHD have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFN and SCHD?
PFN and SCHD share 1 common holdings with a 0.0% weight overlap. Combined, they hold 122 unique securities.
Which pays a higher dividend, PFN or SCHD?
PFN yields 12.41% while SCHD yields 3.31%, so PFN currently pays the higher dividend yield.
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