QLTY vs SCHD
GMO US Quality ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | QLTY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.06% | |
| AUM | $4.8B | $103.7B | |
| Dividend Yield | 0.88% | 3.31% | |
| Holdings | 43 | 104 | |
| YTD Return | +12.07% | +24.26% | |
| 1Y Return | +27.81% | +31.38% | |
| 3Y Return (annualized) | - | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 12.2% | 13.6% | |
| Max Drawdown | -17.0% | -33.4% | |
| Fund Family | GMO | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Nov 13, 2023 | Oct 20, 2011 |
QLTY vs SCHD Performance
GMO US Quality ETF (QLTY) is a ETF from GMO and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year QLTY returned +27.81% while SCHD returned +31.38%. Year to date, QLTY is up 12.07% versus a gain of 24.26% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.2% for QLTY. 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 -17.0% for QLTY 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QLTY charges 0.50% per year while SCHD charges 0.06%. On a $10,000 position that is $50 vs $6 annually, a gap of $44 per year that compounds over a long holding period. On income, QLTY currently yields 0.88% against 3.31% for SCHD.
Holdings Overlap
QLTY and SCHD share 7 holdings out of 135 unique holdings combined, representing a 16.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QLTY or SCHD?
QLTY has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, QLTY or SCHD?
Over the past year QLTY returned +27.81% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), QLTY annualized +22.68% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, QLTY or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.2% for QLTY. Worst drawdown: QLTY -17.0% vs SCHD -33.4%.
Should I hold both QLTY and SCHD?
QLTY and SCHD have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QLTY and SCHD?
QLTY and SCHD share 7 common holdings with a 16.9% weight overlap. Combined, they hold 135 unique securities.
Which pays a higher dividend, QLTY or SCHD?
QLTY yields 0.88% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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