QLTY vs SCHD
GMO US Quality ETF vs Schwab US Dividend Equity ETF
Which is better, QLTY or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. QLTY led over 3Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 44.9%.
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 | QLTY | SCHD |
|---|---|---|
| Expense Ratio | 0.50% | 0.06%Best |
| AUM | $5.2B | $108.9B |
| Dividend Yield | 0.70% | 3.00% |
| Holdings | 90 | 206 |
| YTD Return | +14.78% | +22.89%Best |
| 1Y Return | +21.69% | +29.27%Best |
| 3Y Return (annualized) | +22.13%Best | +16.56% |
| 5Y Return (annualized) | - | +9.63% |
| Volatility (annualized) | 11.9%Best | 13.3% |
| Max Drawdown | -17.0% | -16.1%Best |
| $10,000 over 2.9 years | $17,856Best | $15,588 |
| Top 10 Weight | 44.9% | 41.8%Best |
| Fund Family | GMO | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Nov 13, 2023 | Oct 20, 2011 |
Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Nov 15, 2023 to Oct 12, 2026 (2.9 years).
QLTY 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 2.9 years both funds cover.
QLTY vs SCHD Performance
GMO US Quality ETF (QLTY) is an ETF from GMO and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year QLTY returned +21.69% while SCHD returned +29.27%. Year to date, QLTY is up 14.78% versus a gain of 22.89% for SCHD.
Over three years, QLTY compounded at +22.13% per year against +16.56% for SCHD.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.3% compared with 11.9% 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 -16.1% 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 0.43. They move together some of the time, and apart the rest.
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 0.70% against 3.00% for SCHD.
Holdings Overlap
16.3% of QLTY's money is in holdings SCHD also owns. 27.4% of SCHD's money is in holdings QLTY also owns.
SCHD and QLTY share little of their money.
7 positions in common, counted across the 44 positions we hold weights for in QLTY and 99 in SCHD, against full books of 90 and 206.
What only one of them owns
Our book lists 91 positions for SCHD that do not appear in our book for QLTY (72.5% of the fund), and 37 for QLTY that do not appear in SCHD (83.7%).
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 QLTY | Weight in SCHD | Difference |
|---|---|---|---|
| ABTAbbott Laboratories | 2.40% | 4.44% | 2.04% |
| TXNTexas Instrument Inc | 3.50% | 3.31% | 0.19% |
| MRKMerck & Company Inc | 1.60% | 4.77% | 3.17% |
| UNHUnitedhealth Group Incorporated | 2.50% | 3.82% | 1.32% |
| KOCoca Cola Co. | 1.90% | 4.26% | 2.36% |
| PGProcter & Gamble Company | 2.10% | 3.94% | 1.84% |
| ACNAccenture Plc | 2.30% | 2.83% | 0.53% |
27.4% of SCHD is already inside QLTY.
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, QLTY or SCHD?
QLTY has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option, by $44 a year on a $10,000 investment.
Which performed better, QLTY or SCHD?
Over the past year QLTY returned +21.69% vs +29.27% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QLTY or SCHD?
SCHD has been the more volatile fund at 13.3% annualized versus 11.9% for QLTY. Worst drawdown: QLTY -17.0% vs SCHD -16.1%.
Should I hold both QLTY and SCHD?
QLTY and SCHD have a monthly-return correlation of 0.43, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QLTY and SCHD?
27.4% of SCHD's money is in holdings QLTY also owns. 27.4% of SCHD's is in holdings QLTY also owns. They hold 7 positions in common, counted across the 44 positions we hold weights for in QLTY and 99 in SCHD.
Which pays a higher dividend, QLTY or SCHD?
QLTY yields 0.70% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than QLTY?
SCHD has a lower expense ratio. QLTY led over 3Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 44.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.