QDEF vs SCHD
Northern Trust Quality Dividend Defensive ETF vs Schwab US Dividend Equity ETF
Which is better, QDEF or SCHD?
Each has led over a different period.
SCHD has a lower expense ratio. QDEF led over 3Y and 5Y, SCHD over 1Y and the full window. The two have moved almost in lockstep, correlation 0.91. QDEF is less concentrated, with 35.6% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QDEF | SCHD |
|---|---|---|
| Expense Ratio | 0.39% | 0.06%Best |
| AUM | $555M | $112.1B |
| Dividend Yield | 1.54% | 3.00% |
| Holdings | 137 | 103 |
| YTD Return | +11.04% | +21.99%Best |
| 1Y Return | +14.26% | +25.92%Best |
| 3Y Return (annualized) | +19.90%Best | +15.66% |
| 5Y Return (annualized) | +12.58%Best | +9.48% |
| Volatility (annualized) | 13.4%Best | 14.1% |
| Max Drawdown | -36.2% | -33.4%Best |
| $10,000 over 5 years | $18,084Best | $15,728 |
| Top 10 Weight | 35.6%Best | 41.8% |
| Fund Family | Northern Trust Asset Management | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Dec 14, 2012 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Dec 19, 2012 to Sep 23, 2026 (13.8 years).
QDEF vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 13.8 years both funds cover.
QDEF vs SCHD Performance
Northern Trust Quality Dividend Defensive ETF (QDEF) is an ETF from Northern Trust Asset Management and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year QDEF returned +14.26% while SCHD returned +25.92%. Year to date, QDEF is up 11.04% versus a gain of 21.99% for SCHD.
Over three years, QDEF compounded at +19.90% per year against +15.66% for SCHD; over five years the annualized figures are +12.58% and +9.48% respectively. Across the full 14-year window we track, SCHD has the edge at +10.97% annualized vs +10.45%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.1% 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 what each fund did in the worst stretch of the window measured above.
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 1.54% against 3.00% for SCHD.
Holdings Overlap
11.5% of QDEF's money is in holdings SCHD also owns. 51.1% of SCHD's money is in holdings QDEF also owns.
The two portfolios partly overlap.
23 positions in common, counted across the 154 positions we hold weights for in QDEF and 100 in SCHD, against full books of 137 and 103.
What only one of them owns
Our book lists 76 positions for SCHD that do not appear in our book for QDEF (48.8% of the fund), and 127 for QDEF that do not appear in SCHD (85.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QDEF | Weight in SCHD | Difference |
|---|---|---|---|
| AMGNAmgen Inc. | 0.69% | 4.70% | 4.01% |
| PGProcter & Gamble Company | 0.96% | 3.83% | 2.87% |
| MRKMerck & Company Inc | 0.02% | 4.77% | 4.75% |
| COPConocophillips Common Stock USD 0.01 | 0.47% | 3.94% | 3.47% |
| BMYBristol-Myers Squibb Co. | 0.94% | 3.33% | 2.39% |
| KOCoca Cola Co. | 0.02% | 4.17% | 4.15% |
| UNHUnitedhealth Group Incorporated | 0.02% | 3.82% | 3.80% |
| QCOMQualcomm Inc. | 1.20% | 2.52% | 1.32% |
| MOAltria Group Inc | 0.79% | 2.79% | 2.00% |
| ADPAutomatic Data Processing, Inc. | 0.77% | 2.79% | 2.02% |
51.1% of SCHD is already inside QDEF.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $33 a year on a $10,000 investment.
Which performed better, QDEF or SCHD?
Over the past year QDEF returned +14.26% vs +25.92% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), QDEF annualized +10.45% vs +10.97% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QDEF or SCHD?
SCHD has been the more volatile fund at 14.1% 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. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between QDEF and SCHD?
51.1% of SCHD's money is in holdings QDEF also owns. 51.1% of SCHD's is in holdings QDEF also owns. They hold 23 positions in common, counted across the 154 positions we hold weights for in QDEF and 100 in SCHD.
Which pays a higher dividend, QDEF or SCHD?
QDEF yields 1.54% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than QDEF?
SCHD has a lower expense ratio. QDEF led over 3Y and 5Y, SCHD over 1Y and the full window. The two have moved almost in lockstep, correlation 0.91. QDEF is less concentrated, with 35.6% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.