PSET vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricPSETSCHDWinner
Expense Ratio0.15%0.06%
AUM$28M$103.7B
Dividend Yield0.63%3.31%
Holdings73104
YTD Return+7.34%+24.26%
1Y Return+10.43%+31.38%
3Y Return (annualized)+13.38%+15.08%
5Y Return (annualized)+8.92%+9.72%
Volatility (annualized)15.1%13.6%
Max Drawdown-34.8%-33.4%
Fund FamilyPrincipal FundsCharles Schwab Asset Management
CategoryEquityEquity
InceptionMar 21, 2016Oct 20, 2011

PSET vs SCHD Performance

Principal Quality ETF (PSET) 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 PSET returned +10.43% while SCHD returned +31.38%. Year to date, PSET is up 7.34% versus a gain of 24.26% for SCHD.

Over three years, PSET compounded at +13.38% per year against +15.08% for SCHD; over five years the annualized figures are +8.92% and +9.72% respectively. Across the full 10-year window we track, PSET has the edge at +12.60% annualized vs +11.39%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PSET has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -34.8% for PSET 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PSET charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, PSET currently yields 0.63% against 3.31% for SCHD.

Holdings Overlap

2.6%overlap

PSET and SCHD share 4 holdings out of 169 unique holdings combined, representing a 2.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PSETWeight in SCHDDifference
CMCSA0.93%2.19%1.26%
SLB:CW1.22%1.80%0.58%
BR0.86%0.43%0.43%
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Frequently Asked Questions

Which is cheaper, PSET or SCHD?

PSET has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.

Which performed better, PSET or SCHD?

Over the past year PSET returned +10.43% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), PSET annualized +12.60% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, PSET or SCHD?

PSET has been the more volatile fund at 15.1% annualized versus 13.6% for SCHD. Worst drawdown: PSET -34.8% vs SCHD -33.4%.

Should I hold both PSET and SCHD?

PSET and SCHD have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PSET and SCHD?

PSET and SCHD share 4 common holdings with a 2.6% weight overlap. Combined, they hold 169 unique securities.

Which pays a higher dividend, PSET or SCHD?

PSET yields 0.63% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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