PSDM vs SCHD
PGIM Short Duration Multi-Sector Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PSDM offers more diversification with 322 holdings.
Side-by-Side Comparison
| Metric | PSDM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.06% | |
| AUM | $219M | $103.7B | |
| Dividend Yield | 5.23% | 3.31% | |
| Holdings | 848 | 104 | |
| YTD Return | -1.13% | +24.26% | |
| 1Y Return | +0.77% | +31.38% | |
| 3Y Return (annualized) | +4.62% | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 2.2% | 13.6% | |
| Max Drawdown | -2.2% | -33.4% | |
| Fund Family | PGIM Investments | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 19, 2023 | Oct 20, 2011 |
PSDM vs SCHD Performance
PGIM Short Duration Multi-Sector Bond ETF (PSDM) is a ETF from PGIM Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PSDM returned +0.77% while SCHD returned +31.38%. Year to date, PSDM is down 1.13% versus a gain of 24.26% for SCHD.
Over three years, PSDM compounded at +4.62% per year against +15.08% for SCHD. Across the full 3-year window we track, SCHD has the edge at +11.39% annualized vs +4.62%. 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 2.2% for PSDM. 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 -2.2% for PSDM 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSDM 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, PSDM currently yields 5.23% against 3.31% for SCHD.
Holdings Overlap
PSDM and SCHD share 0 holdings out of 422 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, PSDM or SCHD?
PSDM 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, PSDM or SCHD?
Over the past year PSDM returned +0.77% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), PSDM annualized +4.62% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, PSDM or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 2.2% for PSDM. Worst drawdown: PSDM -2.2% vs SCHD -33.4%.
Should I hold both PSDM and SCHD?
PSDM and SCHD have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSDM and SCHD?
PSDM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 422 unique securities.
Which pays a higher dividend, PSDM or SCHD?
PSDM yields 5.23% while SCHD yields 3.31%, so PSDM currently pays the higher dividend yield.
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