QLC vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. QLC offers more diversification with 175 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: QLC

Side-by-Side Comparison

MetricQLCSCHDWinner
Expense Ratio0.25%0.06%
AUM$1.0B$103.7B
Dividend Yield0.94%3.31%
Holdings178104
YTD Return+14.81%+24.26%
1Y Return+28.75%+31.38%
3Y Return (annualized)+24.23%+15.08%
5Y Return (annualized)+14.86%+9.72%
Volatility (annualized)16.5%13.6%
Max Drawdown-35.9%-33.4%
Fund FamilyFlexshares TrustCharles Schwab Asset Management
CategoryEquityEquity
InceptionSep 23, 2015Oct 20, 2011

QLC vs SCHD Performance

FlexShares US Quality Large Cap Index Fund (QLC) 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 QLC returned +28.75% while SCHD returned +31.38%. Year to date, QLC is up 14.81% versus a gain of 24.26% for SCHD.

Over three years, QLC compounded at +24.23% per year against +15.08% for SCHD; over five years the annualized figures are +14.86% and +9.72% respectively. Across the full 11-year window we track, QLC has the edge at +14.53% annualized vs +11.39%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QLC has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -35.9% for QLC 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 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QLC charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, QLC currently yields 0.94% against 3.31% for SCHD.

Holdings Overlap

7.4%overlap

QLC and SCHD share 24 holdings out of 251 unique holdings combined, representing a 7.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QLCWeight in SCHDDifference
MRK0.79%4.32%3.53%
AMGN0.49%4.25%3.76%
ABT0.07%4.49%4.42%
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HDProProPro
BMYProProPro
MOProProPro
QCOMProProPro
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Frequently Asked Questions

Which is cheaper, QLC or SCHD?

QLC has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $19 per year of difference.

Which performed better, QLC or SCHD?

Over the past year QLC returned +28.75% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), QLC annualized +14.53% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, QLC or SCHD?

QLC has been the more volatile fund at 16.5% annualized versus 13.6% for SCHD. Worst drawdown: QLC -35.9% vs SCHD -33.4%.

Should I hold both QLC and SCHD?

QLC and SCHD have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QLC and SCHD?

QLC and SCHD share 24 common holdings with a 7.4% weight overlap. Combined, they hold 251 unique securities.

Which pays a higher dividend, QLC or SCHD?

QLC yields 0.94% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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