PRFD vs SCHD
PRFD vs SCHD
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PRFD offers more diversification with 116 holdings.
Side-by-Side Comparison
| Metric | PRFD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.06% | |
| AUM | $235M | $103.7B | |
| Dividend Yield | 5.72% | 3.31% | |
| Holdings | 223 | 104 | |
| YTD Return | +1.07% | +24.26% | |
| 1Y Return | +4.79% | +31.38% | |
| 3Y Return (annualized) | +8.39% | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 6.9% | 13.6% | |
| Max Drawdown | -11.9% | -33.4% | |
| Fund Family | PIMCO (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 18, 2023 | Oct 20, 2011 |
PRFD vs SCHD Performance
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund (PRFD) is a ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PRFD returned +4.79% while SCHD returned +31.38%. Year to date, PRFD is up 1.07% versus a gain of 24.26% for SCHD.
Over three years, PRFD compounded at +8.39% per year against +15.08% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.39% annualized vs +5.98%. 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 6.9% for PRFD. 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 -11.9% for PRFD 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PRFD charges 0.73% per year while SCHD charges 0.06%. On a $10,000 position that is $73 vs $6 annually, a gap of $67 per year that compounds over a long holding period. On income, PRFD currently yields 5.72% against 3.31% for SCHD.
Holdings Overlap
PRFD and SCHD share 0 holdings out of 216 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, PRFD or SCHD?
PRFD has an expense ratio of 0.73% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, PRFD or SCHD?
Over the past year PRFD returned +4.79% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), PRFD annualized +5.98% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, PRFD or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 6.9% for PRFD. Worst drawdown: PRFD -11.9% vs SCHD -33.4%.
Should I hold both PRFD and SCHD?
PRFD and SCHD have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PRFD and SCHD?
PRFD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 216 unique securities.
Which pays a higher dividend, PRFD or SCHD?
PRFD yields 5.72% while SCHD yields 3.31%, so PRFD currently pays the higher dividend yield.
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