PSK vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PSK offers more diversification with 144 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: PSK

Side-by-Side Comparison

MetricPSKSCHDWinner
Expense Ratio0.45%0.06%
AUM$691M$103.7B
Dividend Yield7.06%3.31%
Holdings161104
YTD Return-3.60%+25.33%
1Y Return-1.59%+32.31%
3Y Return (annualized)+2.75%+15.40%
5Y Return (annualized)-1.49%+9.70%
Volatility (annualized)8.9%13.6%
Max Drawdown-34.1%-33.4%
Fund FamilyState Street Investment ManagementCharles Schwab Asset Management
CategoryAllocation/BalancedEquity
InceptionSep 16, 2009Oct 20, 2011

PSK vs SCHD Performance

State Street SPDR ICE Preferred Securities ETF (PSK) is a ETF from State Street Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PSK returned -1.59% while SCHD returned +32.31%. Year to date, PSK is down 3.60% versus a gain of 25.33% for SCHD.

Over three years, PSK compounded at +2.75% per year against +15.40% for SCHD; over five years the annualized figures are -1.49% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +0.18%. 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 8.9% for PSK. 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 -34.1% for PSK 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

PSK charges 0.45% per year while SCHD charges 0.06%. On a $10,000 position that is $45 vs $6 annually, a gap of $39 per year that compounds over a long holding period. On income, PSK currently yields 7.06% against 3.31% for SCHD.

Holdings Overlap

0.6%overlap

PSK and SCHD share 1 holdings out of 243 unique holdings combined, representing a 0.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PSKWeight in SCHDDifference
FITB0.59%1.35%0.76%

Frequently Asked Questions

Which is cheaper, PSK or SCHD?

PSK has an expense ratio of 0.45% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $39 per year of difference.

Which performed better, PSK or SCHD?

Over the past year PSK returned -1.59% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PSK annualized +0.18% vs +11.45% for SCHD. Past performance does not guarantee future results.

Which is riskier, PSK or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 8.9% for PSK. Worst drawdown: PSK -34.1% vs SCHD -33.4%.

Should I hold both PSK and SCHD?

PSK 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 PSK and SCHD?

PSK and SCHD share 1 common holdings with a 0.6% weight overlap. Combined, they hold 243 unique securities.

Which pays a higher dividend, PSK or SCHD?

PSK yields 7.06% while SCHD yields 3.31%, so PSK currently pays the higher dividend yield.

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