PGX vs SCHD
Invesco Preferred ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PGX offers more diversification with 270 holdings.
Side-by-Side Comparison
| Metric | PGX | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.06% | |
| AUM | $3.8B | $108.7B | |
| Dividend Yield | 6.38% | 3.13% | |
| Holdings | 270 | 104 | |
| YTD Return | -2.33% | +26.54% | |
| 1Y Return | -0.78% | +30.90% | |
| 3Y Return (annualized) | +4.60% | +16.29% | |
| 5Y Return (annualized) | -1.18% | +9.65% | |
| Volatility (annualized) | 14.4% | 13.6% | |
| Max Drawdown | -69.5% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jan 31, 2008 | Oct 20, 2011 |
PGX vs SCHD Performance
Invesco Preferred ETF (PGX) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PGX returned -0.78% while SCHD returned +30.90%. Year to date, PGX is down 2.33% versus a gain of 26.54% for SCHD.
Over three years, PGX compounded at +4.60% per year against +16.29% for SCHD; over five years the annualized figures are -1.18% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs -1.74%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PGX has been the more volatile fund, with annualized monthly volatility of 14.4% 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 -69.5% for PGX 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PGX charges 0.50% per year while SCHD charges 0.06%. On a $10,000 position that is $50 vs $6 annually, a gap of $44 per year that compounds over a long holding period. On income, PGX currently yields 6.38% against 3.13% for SCHD.
Holdings Overlap
PGX and SCHD share 3 holdings out of 324 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PGX or SCHD?
PGX has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, PGX or SCHD?
Over the past year PGX returned -0.78% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PGX annualized -1.74% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, PGX or SCHD?
PGX has been the more volatile fund at 14.4% annualized versus 13.6% for SCHD. Worst drawdown: PGX -69.5% vs SCHD -33.4%.
Should I hold both PGX and SCHD?
PGX and SCHD have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PGX and SCHD?
PGX and SCHD share 3 common holdings with a 0.7% weight overlap. Combined, they hold 324 unique securities.
Which pays a higher dividend, PGX or SCHD?
PGX yields 6.38% while SCHD yields 3.13%, so PGX currently pays the higher dividend yield.
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