PFO vs SCHD
Flaherty & Crumrine Preferred Income Opportunity Fund Inc vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD delivered stronger 1-year returns. PFO offers more diversification with 177 holdings.
Side-by-Side Comparison
| Metric | PFO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | - | 0.06% | |
| AUM | $132M | $103.7B | |
| Dividend Yield | 6.60% | 3.31% | |
| Holdings | 260 | 104 | |
| YTD Return | +0.50% | +25.33% | |
| 1Y Return | +5.06% | +32.31% | |
| 3Y Return (annualized) | +12.44% | +15.40% | |
| 5Y Return (annualized) | -0.35% | +9.70% | |
| Volatility (annualized) | 18.3% | 13.6% | |
| Max Drawdown | -83.2% | -33.4% | |
| Fund Family | Flaherty & Crumrine | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 13, 1992 | Oct 20, 2011 |
PFO vs SCHD Performance
Flaherty & Crumrine Preferred Income Opportunity Fund Inc (PFO) is a ETF from Flaherty & Crumrine and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PFO returned +5.06% while SCHD returned +32.31%. Year to date, PFO is up 0.50% versus a gain of 25.33% for SCHD.
Over three years, PFO compounded at +12.44% per year against +15.40% for SCHD; over five years the annualized figures are -0.35% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +0.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFO has been the more volatile fund, with annualized monthly volatility of 18.3% 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 -83.2% for PFO 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Holdings Overlap
PFO and SCHD share 0 holdings out of 277 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which performed better, PFO or SCHD?
Over the past year PFO returned +5.06% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PFO annualized +0.84% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, PFO or SCHD?
PFO has been the more volatile fund at 18.3% annualized versus 13.6% for SCHD. Worst drawdown: PFO -83.2% vs SCHD -33.4%.
Should I hold both PFO and SCHD?
PFO and SCHD have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFO and SCHD?
PFO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 277 unique securities.
Which pays a higher dividend, PFO or SCHD?
PFO yields 6.60% while SCHD yields 3.31%, so PFO currently pays the higher dividend yield.
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