PGZ vs SCHD
Principal Real Estate Income Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PGZ offers more diversification with 110 holdings.
Side-by-Side Comparison
| Metric | PGZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 2.16% | 0.06% | |
| AUM | $74M | $108.7B | |
| Dividend Yield | 11.39% | 3.13% | |
| Holdings | 110 | 104 | |
| YTD Return | +9.68% | +26.54% | |
| 1Y Return | +7.93% | +30.90% | |
| 3Y Return (annualized) | +14.72% | +16.29% | |
| 5Y Return (annualized) | +2.73% | +9.65% | |
| Volatility (annualized) | 21.2% | 13.6% | |
| Max Drawdown | -68.8% | -33.4% | |
| Fund Family | Principal Funds | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 26, 2013 | Oct 20, 2011 |
PGZ vs SCHD Performance
Principal Real Estate Income Fund (PGZ) is a ETF from Principal Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PGZ returned +7.93% while SCHD returned +30.90%. Year to date, PGZ is up 9.68% versus a gain of 26.54% for SCHD.
Over three years, PGZ compounded at +14.72% per year against +16.29% for SCHD; over five years the annualized figures are +2.73% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs -1.57%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PGZ has been the more volatile fund, with annualized monthly volatility of 21.2% 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 -68.8% for PGZ 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
PGZ charges 2.16% per year while SCHD charges 0.06%. On a $10,000 position that is $216 vs $6 annually, a gap of $210 per year that compounds over a long holding period. On income, PGZ currently yields 11.39% against 3.13% for SCHD.
Holdings Overlap
PGZ and SCHD share 0 holdings out of 161 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PGZ or SCHD?
PGZ has an expense ratio of 2.16% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $210 per year of difference.
Which performed better, PGZ or SCHD?
Over the past year PGZ returned +7.93% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PGZ annualized -1.57% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, PGZ or SCHD?
PGZ has been the more volatile fund at 21.2% annualized versus 13.6% for SCHD. Worst drawdown: PGZ -68.8% vs SCHD -33.4%.
Should I hold both PGZ and SCHD?
PGZ 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 PGZ and SCHD?
PGZ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 161 unique securities.
Which pays a higher dividend, PGZ or SCHD?
PGZ yields 11.39% while SCHD yields 3.13%, so PGZ currently pays the higher dividend yield.
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