QDEF vs SCHD
Northern Trust Quality Dividend Defensive ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. QDEF offers more diversification with 137 holdings.
Side-by-Side Comparison
| Metric | QDEF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $618M | $112.2B | |
| Dividend Yield | 1.58% | 3.13% | |
| Holdings | 137 | 103 | |
| YTD Return | +13.17% | +28.33% | |
| 1Y Return | +19.42% | +30.37% | |
| 3Y Return (annualized) | +19.63% | +16.64% | |
| 5Y Return (annualized) | +12.35% | +10.04% | |
| Volatility (annualized) | 13.4% | 13.6% | |
| Max Drawdown | -36.2% | -33.4% | |
| Fund Family | Northern Trust Asset Management | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 14, 2012 | Oct 20, 2011 |
QDEF vs SCHD Performance
Northern Trust Quality Dividend Defensive ETF (QDEF) is a ETF from Northern Trust Asset Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year QDEF returned +19.42% while SCHD returned +30.37%. Year to date, QDEF is up 13.17% versus a gain of 28.33% for SCHD.
Over three years, QDEF compounded at +19.63% per year against +16.64% for SCHD; over five years the annualized figures are +12.35% and +10.04% respectively. Across the full 14-year window we track, SCHD has the edge at +11.58% annualized vs +10.65%. 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 13.4% for QDEF. 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 -36.2% for QDEF 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QDEF charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, QDEF currently yields 1.58% against 3.13% for SCHD.
Holdings Overlap
QDEF and SCHD share 23 holdings out of 210 unique holdings combined, representing a 13.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QDEF or SCHD?
QDEF has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, QDEF or SCHD?
Over the past year QDEF returned +19.42% vs +30.37% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), QDEF annualized +10.65% vs +11.58% for SCHD. Past performance does not guarantee future results.
Which is riskier, QDEF or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.4% for QDEF. Worst drawdown: QDEF -36.2% vs SCHD -33.4%.
Should I hold both QDEF and SCHD?
QDEF and SCHD have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QDEF and SCHD?
QDEF and SCHD share 23 common holdings with a 13.7% weight overlap. Combined, they hold 210 unique securities.
Which pays a higher dividend, QDEF or SCHD?
QDEF yields 1.58% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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