PPEM vs SCHD

Quick Verdict

SCHD has a lower expense ratio. PPEM delivered stronger 1-year returns. PPEM offers more diversification with 109 holdings.

Lower Fees: SCHDHigher Returns: PPEMMore Diversified: PPEM

Side-by-Side Comparison

MetricPPEMSCHDWinner
Expense Ratio0.60%0.06%
AUM$2M$103.7B
Dividend Yield49.41%3.31%
Holdings116104
YTD Return+28.48%+24.26%
1Y Return+55.32%+31.38%
3Y Return (annualized)+24.92%+15.08%
5Y Return (annualized)-+9.72%
Volatility (annualized)16.7%13.6%
Max Drawdown-18.4%-33.4%
Fund FamilyPutnam InvestmentsCharles Schwab Asset Management
CategoryEquityEquity
InceptionJan 19, 2023Oct 20, 2011

PPEM vs SCHD Performance

Putnam PanAgora ESG Emerging Markets Equity ETF (PPEM) is a ETF from Putnam Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PPEM returned +55.32% while SCHD returned +31.38%. Year to date, PPEM is up 28.48% versus a gain of 24.26% for SCHD.

Over three years, PPEM compounded at +24.92% per year against +15.08% for SCHD. Across the full 3-year window we track, PPEM has the edge at +21.29% annualized vs +11.39%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PPEM has been the more volatile fund, with annualized monthly volatility of 16.7% 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 -18.4% for PPEM 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.

Fees and Cost Over Time

PPEM charges 0.60% per year while SCHD charges 0.06%. On a $10,000 position that is $60 vs $6 annually, a gap of $54 per year that compounds over a long holding period. On income, PPEM currently yields 49.41% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

PPEM and SCHD share 0 holdings out of 209 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, PPEM or SCHD?

PPEM has an expense ratio of 0.60% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $54 per year of difference.

Which performed better, PPEM or SCHD?

Over the past year PPEM returned +55.32% vs +31.38% for SCHD, so PPEM leads on 1-year performance. Over the longest common window we track (3 years), PPEM annualized +21.29% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, PPEM or SCHD?

PPEM has been the more volatile fund at 16.7% annualized versus 13.6% for SCHD. Worst drawdown: PPEM -18.4% vs SCHD -33.4%.

Should I hold both PPEM and SCHD?

PPEM 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 PPEM and SCHD?

PPEM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 209 unique securities.

Which pays a higher dividend, PPEM or SCHD?

PPEM yields 49.41% while SCHD yields 3.31%, so PPEM currently pays the higher dividend yield.

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