POWA vs SCHD
Invesco Bloomberg Pricing Power ETF 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 | POWA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.06% | |
| AUM | $177M | $103.7B | |
| Dividend Yield | 0.95% | 3.31% | |
| Holdings | 53 | 104 | |
| YTD Return | +4.29% | +26.21% | |
| 1Y Return | +5.33% | +29.99% | |
| 3Y Return (annualized) | +11.70% | +15.73% | |
| 5Y Return (annualized) | +7.37% | +9.67% | |
| Volatility (annualized) | 13.3% | 13.6% | |
| Max Drawdown | -47.9% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 15, 2006 | Oct 20, 2011 |
POWA vs SCHD Performance
Invesco Bloomberg Pricing Power ETF (POWA) 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 POWA returned +5.33% while SCHD returned +29.99%. Year to date, POWA is up 4.29% versus a gain of 26.21% for SCHD.
Over three years, POWA compounded at +11.70% per year against +15.73% for SCHD; over five years the annualized figures are +7.37% and +9.67% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs +8.76%. 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 13.3% for POWA. 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 -47.9% for POWA 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
POWA charges 0.40% per year while SCHD charges 0.06%. On a $10,000 position that is $40 vs $6 annually, a gap of $34 per year that compounds over a long holding period. On income, POWA currently yields 0.95% against 3.31% for SCHD.
Holdings Overlap
POWA and SCHD share 6 holdings out of 145 unique holdings combined, representing a 8.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, POWA or SCHD?
POWA has an expense ratio of 0.40% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, POWA or SCHD?
Over the past year POWA returned +5.33% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), POWA annualized +8.76% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, POWA or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.3% for POWA. Worst drawdown: POWA -47.9% vs SCHD -33.4%.
Should I hold both POWA and SCHD?
POWA and SCHD have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between POWA and SCHD?
POWA and SCHD share 6 common holdings with a 8.3% weight overlap. Combined, they hold 145 unique securities.
Which pays a higher dividend, POWA or SCHD?
POWA yields 0.95% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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