QDF vs SCHD
FlexShares Quality Dividend Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. QDF offers more diversification with 122 holdings.
Side-by-Side Comparison
| Metric | QDF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $2.2B | $103.7B | |
| Dividend Yield | 1.50% | 3.31% | |
| Holdings | 126 | 104 | |
| YTD Return | +15.43% | +24.26% | |
| 1Y Return | +25.60% | +31.38% | |
| 3Y Return (annualized) | +18.63% | +15.08% | |
| 5Y Return (annualized) | +12.42% | +9.72% | |
| Volatility (annualized) | 14.4% | 13.6% | |
| Max Drawdown | -37.2% | -33.4% | |
| Fund Family | Flexshares Trust | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 14, 2012 | Oct 20, 2011 |
QDF vs SCHD Performance
FlexShares Quality Dividend Index Fund (QDF) is a ETF from Flexshares Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year QDF returned +25.60% while SCHD returned +31.38%. Year to date, QDF is up 15.43% versus a gain of 24.26% for SCHD.
Over three years, QDF compounded at +18.63% per year against +15.08% for SCHD; over five years the annualized figures are +12.42% and +9.72% respectively. Across the full 14-year window we track, SCHD has the edge at +11.39% annualized vs +10.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QDF has been the more volatile fund, with annualized monthly volatility of 14.4% 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 -37.2% for QDF 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
QDF 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, QDF currently yields 1.50% against 3.31% for SCHD.
Holdings Overlap
QDF and SCHD share 22 holdings out of 200 unique holdings combined, representing a 11.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QDF or SCHD?
QDF 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, QDF or SCHD?
Over the past year QDF returned +25.60% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), QDF annualized +10.86% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, QDF or SCHD?
QDF has been the more volatile fund at 14.4% annualized versus 13.6% for SCHD. Worst drawdown: QDF -37.2% vs SCHD -33.4%.
Should I hold both QDF and SCHD?
QDF 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 QDF and SCHD?
QDF and SCHD share 22 common holdings with a 11.6% weight overlap. Combined, they hold 200 unique securities.
Which pays a higher dividend, QDF or SCHD?
QDF yields 1.50% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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